EMC (EMC) versus Silicon Graphics International Corp (SGI) Critical Review
Silicon Graphics International Corp (NASDAQ: SGI) and EMC (NYSE:EMC) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitabiliy, risk and dividends.
Risk & Volatility
Silicon Graphics International Corp has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500. Comparatively, EMC has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.
Earnings & Valuation
This table compares Silicon Graphics International Corp and EMC’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Silicon Graphics International Corp||N/A||N/A||N/A||($0.32)||-24.22|
Silicon Graphics International Corp is trading at a lower price-to-earnings ratio than EMC, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for Silicon Graphics International Corp and EMC, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Silicon Graphics International Corp||0||1||1||0||2.50|
Silicon Graphics International Corp currently has a consensus target price of $7.88, suggesting a potential upside of 1.61%. EMC has a consensus target price of $29.60, suggesting a potential upside of 1.89%. Given EMC’s higher possible upside, analysts clearly believe EMC is more favorable than Silicon Graphics International Corp.
This table compares Silicon Graphics International Corp and EMC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Silicon Graphics International Corp||0.11%||0.98%||0.15%|
Insider and Institutional Ownership
80.9% of Silicon Graphics International Corp shares are owned by institutional investors. Comparatively, 79.9% of EMC shares are owned by institutional investors. 3.9% of Silicon Graphics International Corp shares are owned by insiders. Comparatively, 0.4% of EMC shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
EMC pays an annual dividend of $0.46 per share and has a dividend yield of 1.6%. Silicon Graphics International Corp does not pay a dividend. EMC pays out 43.0% of its earnings in the form of a dividend. Silicon Graphics International Corp has raised its dividend for 3 consecutive years.
EMC beats Silicon Graphics International Corp on 7 of the 13 factors compared between the two stocks.
About Silicon Graphics International Corp
Silicon Graphics International Corp. (SGI) is engaged in providing solutions for compute, data analytics and data management. The Company develops, markets and sells a line of mid-range and high-end scale-out and scale-up servers, enterprise-class storage, differentiating software and designed-to-order solutions for data center deployments. The Company operates through the segments, including Product and Service. The Company’s Product segment consists of compute and storage solutions, which include products from both HPC and HPDA segments. The Company’s Product segment includes scale-out computing, scale-up computing, software and cloud/Web solutions. Its storage solutions include both hardware and software offerings for data storage and management. The Service segment consists of customer service support and professional services. SGI systems enable customers to access, analyze, transform, manage and visualize information in real and near real-time.
EMC Corporation (EMC) develops, delivers and supports the information technology (IT) industry’s range of information infrastructure and virtual infrastructure technologies, solutions and services. EMC manages the Company as part of a federation of businesses: EMC Information Infrastructure, VMware Virtual Infrastructure, Pivotal and Virtustream. EMC’s Information Infrastructure business provides a foundation for organizations to store, manage, protect, analyze and secure information. EMC’s VMware Virtual Infrastructure business is engaged in virtualization and cloud infrastructure solutions that enable businesses to help transform the way they build, deliver and consume IT resources in a manner that is based on their specific needs. EMC’s Pivotal business unites strategic technology, people and programs from EMC and VMware and has a platform that consists of data, agile development practices and a cloud independent platform-as-a-service.
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