Western Digital Corporation (NASDAQ: WDC) and Dell (NASDAQ:DELL) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitabiliy.

Valuation & Earnings

This table compares Western Digital Corporation and Dell’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Western Digital Corporation $17.75 billion 1.42 $3.51 billion ($0.99) -87.51
Dell N/A N/A N/A N/A N/A

Western Digital Corporation has higher revenue and earnings than Dell.

Dividends

Western Digital Corporation pays an annual dividend of $2.00 per share and has a dividend yield of 2.3%. Dell does not pay a dividend. Western Digital Corporation pays out -202.0% of its earnings in the form of a dividend.

Institutional and Insider Ownership

83.1% of Western Digital Corporation shares are held by institutional investors. 0.5% of Western Digital Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Western Digital Corporation and Dell, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Western Digital Corporation 0 6 24 1 2.84
Dell 0 0 0 0 N/A

Western Digital Corporation presently has a consensus price target of $96.41, suggesting a potential upside of 11.28%. Given Western Digital Corporation’s higher probable upside, equities research analysts plainly believe Western Digital Corporation is more favorable than Dell.

Profitability

This table compares Western Digital Corporation and Dell’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Western Digital Corporation -1.32% 16.01% 5.81%
Dell N/A N/A N/A

Summary

Western Digital Corporation beats Dell on 10 of the 11 factors compared between the two stocks.

Western Digital Corporation Company Profile

Western Digital Corporation (Western Digital) is a developer, manufacturer and provider of data storage devices and solutions that address the needs of the information technology (IT) industry and the infrastructure that enables the proliferation of data in virtually every industry. The Company’s portfolio of offerings addresses three categories: Datacenter Devices and Solutions (capacity and performance enterprise hard disk drives (HDDs), enterprise solid state drives (SSDs), datacenter software and system solutions); Client Devices (mobile, desktop, gaming and digital video hard drives, client SSDs, embedded products and wafers), and Client Solutions (removable products, hard drive content solutions and flash content solutions). The Company develops and manufactures a portion of the recording heads and magnetic media used in its hard drive products.

Dell Company Profile

Dell Inc. (Dell) is a global information technology company that offers its customers a range of solutions and services delivered directly by Dell and through other distribution channels. Dell is a holding company that conducts its business worldwide through its subsidiaries. The Company operates in four segments: Large Enterprise, Public, Small and Medium Business, and Consumer. The Company’s Large Enterprise customers include global and national corporate businesses. Its Public customers, which include educational institutions, government, health care, and law enforcement agencies, operate in their own communities. Its SMB segment is focused on helping small and medium-sized businesses by offering products, services, and solutions. Its Consumer segment is focused on delivering technology experience of entertainment, mobility, gaming, and design. In March 2014, the Company acquired StatSoft, a provider of advanced analytics solutions.

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