Quantum (NYSE: QTM) and Pure Storage (NYSE:PSTG) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Risk and Volatility
Quantum has a beta of 2.41, suggesting that its stock price is 141% more volatile than the S&P 500. Comparatively, Pure Storage has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.
Insider and Institutional Ownership
65.2% of Quantum shares are owned by institutional investors. Comparatively, 44.6% of Pure Storage shares are owned by institutional investors. 8.6% of Quantum shares are owned by insiders. Comparatively, 15.3% of Pure Storage shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Quantum and Pure Storage’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Earnings & Valuation
This table compares Quantum and Pure Storage’s gross revenue, earnings per share and valuation.
||Earnings Per Share
Quantum has higher earnings, but lower revenue than Pure Storage.
This is a summary of recent ratings and price targets for Quantum and Pure Storage, as provided by MarketBeat.com.
||Strong Buy Ratings
Quantum currently has a consensus price target of $10.00, suggesting a potential upside of 171.74%. Pure Storage has a consensus price target of $21.63, suggesting a potential downside of 8.64%. Given Quantum’s stronger consensus rating and higher probable upside, research analysts clearly believe Quantum is more favorable than Pure Storage.
Quantum beats Pure Storage on 8 of the 12 factors compared between the two stocks.
Quantum Corporation provides scale-out storage, archive, and data protection solutions for small businesses and multi-national enterprises in the Americas, Europe, and the Asia Pacific. The company offers StorNext 5 software and hardware that offer file sharing and archiving in purpose-built configurations of metadata controllers, expansion appliances, and disk and archive enabled libraries; Xcellis product, which optimizes workflow and shared access by combining functions into a compact, space, and energy-saving solution; and Lattus Object Storage solutions that enable high volumes of data to be available to extract valuable information. It also offers StorNext Storage Manager software; and StorNext AEL archives products, which provide near-line archiving with built-in data protection and self-healing capabilities. In addition, the company's data protection solutions comprise DXi disk systems that use deduplication technology to enhance the amount of backup data; Scalar Tape Automation Systems, which manage and protect business critical data in workgroup, medium size business, and enterprise data center environment; SuperLoader3 autoloader designed to maximize data density and performance; and iLayer, which offers monitoring, alerts, and proactive diagnostics. Further, it provides device and media products, such as removable disk drives and libraries, tape drives, and storage media. The company sells its products through a network of distributors, value-added resellers, direct marketing resellers, original equipment manufacturers, and other suppliers, as well as directly to corporate entities and government agencies. Quantum Corporation was founded in 1980 and is headquartered in San Jose, California.
About Pure Storage
Pure Storage, Inc. engages in building a data platform that enables businesses to enhance performance and reduce complexity and costs worldwide. The company delivers its data platform through Purity Operating Environment, an optimized software for solid-state memory that offers enterprise-class storage and protocol services; FlashArray and FlashBlade optimized hardware products for solid-state memory to enhance the performance and density of flash, optimize its advanced software services, and reduce solution cost for customers; Pure1, a cloud-based management and support software; and FlashStack, a converged infrastructure solution. Its data platform is used for a range of storage use cases, including database applications, large-scale analytics, private and public cloud infrastructure, Webscale applications, virtual server infrastructure, and virtual desktop infrastructure; and helps customers scale their businesses through real-time and accurate analytics, increase employee productivity, improve operational efficiency, and deliver compelling user experiences to their customers and partners. The company serves large and mid-size organizations across various industries, such as cloud-based software and service providers, consumer Web, education, energy, financial services, government, healthcare, manufacturing, media, retail, and telecommunications through a network of distribution and channel partners. The company was formerly known as OS76, Inc. and changed its name to Pure Storage, Inc. in January 2010. Pure Storage, Inc. was founded in 2009 and is headquartered in Mountain View, California.
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