Financial Contrast: Seagate Technology (STX) versus Quantum (QMCO)

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

Dividends

Seagate Technology pays an annual dividend of $2.52 per share and has a dividend yield of 5.6%. Quantum does not pay a dividend. Seagate Technology pays out 45.7% of its earnings in the form of a dividend.

Institutional & Insider Ownership

93.0% of Seagate Technology shares are held by institutional investors. Comparatively, 62.7% of Quantum shares are held by institutional investors. 1.0% of Seagate Technology shares are held by company insiders. Comparatively, 8.6% of Quantum shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Seagate Technology and Quantum, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seagate Technology 5 17 4 0 1.96
Quantum 0 0 0 0 N/A

Seagate Technology presently has a consensus price target of $45.65, suggesting a potential upside of 1.19%. Given Seagate Technology’s higher possible upside, equities analysts plainly believe Seagate Technology is more favorable than Quantum.

Volatility and Risk

Seagate Technology has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, Quantum has a beta of 2.11, indicating that its stock price is 111% more volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Seagate Technology $11.18 billion 1.14 $1.18 billion $5.51 8.19
Quantum $505.35 million 0.17 $3.64 million N/A N/A

Seagate Technology has higher revenue and earnings than Quantum.

Profitability

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

Net Margins Return on Equity Return on Assets
Seagate Technology 14.77% 105.74% 19.57%
Quantum N/A N/A N/A

Summary

Seagate Technology beats Quantum on 10 of the 13 factors compared between the two stocks.

About Seagate Technology

Seagate Technology plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It manufactures and distributes hard disk drives; solid state drives (SSDs), including serial attached small computer system interface and non-volatile memory express SSDs; solid state hybrid drives; and storage subsystems. The company's products are used in enterprise servers and storage systems; edge compute/client compute applications, primarily for desktop and mobile computing; and edge non-compute/client non-compute applications, such as various end user devices comprising portable external storage systems, surveillance systems, digital video recorders, network-attached storages, and gaming consoles, as well as data centers. It also provides cloud systems and solutions portfolio that includes modular original equipment manufacturer (OEM) storage systems and scale-out storage servers. In addition, the company offers external storage solutions under the Seagate Backup Plus and Expansion product lines, as well as under the LaCie and Maxtor brands in capacities up to 120TB. The company sells its products primarily to OEMs, distributors, and retailers. Seagate Technology plc was founded in 1979 and is headquartered in Dublin, Ireland.

About Quantum

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.

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