Comparing Seagate Technology PLC (STX) & Knowles Corporation (KN)

Seagate Technology PLC (NASDAQ: STX) and Knowles Corporation (NYSE:KN) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Seagate Technology PLC and Knowles Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seagate Technology PLC 3 21 5 1 2.13
Knowles Corporation 0 1 2 0 2.67

Seagate Technology PLC currently has a consensus target price of $41.65, indicating a potential upside of 9.64%. Knowles Corporation has a consensus target price of $19.33, indicating a potential upside of 17.46%. Given Knowles Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Knowles Corporation is more favorable than Seagate Technology PLC.

Dividends

Seagate Technology PLC pays an annual dividend of $2.52 per share and has a dividend yield of 6.6%. Knowles Corporation does not pay a dividend. Seagate Technology PLC pays out 95.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

Seagate Technology PLC has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, Knowles Corporation has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Earnings and Valuation

This table compares Seagate Technology PLC and Knowles Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Seagate Technology PLC $10.77 billion 1.02 $772.00 million $2.65 14.34
Knowles Corporation $859.30 million 1.71 -$42.30 million ($0.02) -823.00

Seagate Technology PLC has higher revenue and earnings than Knowles Corporation. Knowles Corporation is trading at a lower price-to-earnings ratio than Seagate Technology PLC, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Seagate Technology PLC and Knowles Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seagate Technology PLC 7.41% 84.50% 13.27%
Knowles Corporation 0.25% 6.13% 4.09%

Institutional and Insider Ownership

90.3% of Seagate Technology PLC shares are owned by institutional investors. 0.9% of Seagate Technology PLC shares are owned by company insiders. Comparatively, 2.2% of Knowles Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Seagate Technology PLC beats Knowles Corporation on 11 of the 17 factors compared between the two stocks.

About Seagate Technology PLC

Seagate Technology public limited company is a provider of electronic data storage technology and solutions. The Company’s principal products are hard disk drives (HDDs). In addition to HDDs, it produces a range of electronic data storage products, including solid state hybrid drives, solid state drives, peripheral component interconnect express (PCIe) cards and serial advanced technology architecture (SATA) controllers. Its storage technology portfolio also includes storage subsystems and high performance computing solutions. Its products are designed for applications in enterprise servers and storage systems, client compute applications and client non-compute applications. It designs, fabricates and assembles various components found in its disk drives, including read/write heads and recording media. Its design and manufacturing operations are based on technology platforms that are used to produce various disk drive products that serve multiple data storage applications and markets.

About Knowles Corporation

Knowles Corporation is a global supplier of micro-acoustic, audio processing and specialty component solutions, serving the mobile consumer electronics, communications, medical, military, aerospace and industrial markets. The Company operates through two segments: Mobile Consumer Electronics (MCE) and Specialty Components (SC). MCE designs and manufactures acoustic products, including microphones and audio processing technologies used in mobile handsets, wearables and other consumer electronic devices. SC specializes in the design and manufacture of specialized electronic components used in medical and life science applications, as well as solutions and components used in communications infrastructure and a range of other markets. It has sales, support and engineering facilities in North America, Europe and Asia, and manufacturing facilities in Asia. It also offers acoustics components used in hearing aids, as well as high-end oscillators (timing devices) and capacitors.

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