RadiSys Corporation (RSYS) versus Silicon Graphics International Corp (SGI) Critical Survey
RadiSys Corporation (NASDAQ: RSYS) and Silicon Graphics International Corp (NASDAQ:SGI) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitabiliy, valuation, institutional ownership and analyst recommendations.
Valuation and Earnings
This table compares RadiSys Corporation and Silicon Graphics International Corp’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|RadiSys Corporation||$194.86 million||0.52||-$4.31 million||($0.46)||-5.67|
|Silicon Graphics International Corp||N/A||N/A||N/A||($0.32)||-24.22|
Silicon Graphics International Corp has higher revenue, but lower earnings than RadiSys Corporation. Silicon Graphics International Corp is trading at a lower price-to-earnings ratio than RadiSys Corporation, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
58.5% of RadiSys Corporation shares are owned by institutional investors. Comparatively, 80.9% of Silicon Graphics International Corp shares are owned by institutional investors. 4.9% of RadiSys Corporation shares are owned by insiders. Comparatively, 3.9% of Silicon Graphics International Corp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a breakdown of current ratings and recommmendations for RadiSys Corporation and Silicon Graphics International Corp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Silicon Graphics International Corp||0||1||1||0||2.50|
RadiSys Corporation currently has a consensus price target of $5.25, suggesting a potential upside of 101.15%. Silicon Graphics International Corp has a consensus price target of $7.75, suggesting a potential upside of 0.00%. Given RadiSys Corporation’s stronger consensus rating and higher possible upside, equities research analysts clearly believe RadiSys Corporation is more favorable than Silicon Graphics International Corp.
This table compares RadiSys Corporation and Silicon Graphics International Corp’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%|
Volatility & Risk
RadiSys Corporation has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Silicon Graphics International Corp has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500.
Silicon Graphics International Corp beats RadiSys Corporation on 6 of the 11 factors compared between the two stocks.
RadiSys Corporation Company Profile
Radisys Corporation (Radisys) is a services acceleration company. The Company’s application aware traffic distribution platforms, real-time media processing products and wireless access technologies enable service providers to virtualize and monetize their networks. The Company’s products and services are organized into two segments: Software-Systems, and Embedded Products and Hardware Services. The Company’s Software-Systems segment consists of three product families: FlowEngine, MediaEngine and CellEngine. Also included in the Software-Systems segment is its Professional Service organization. The Company’s Embedded Products and Hardware Services segment provides customers with hardware based products targeted at the communications and healthcare markets. Products within this segment fall under primary categories, including T-Series Advanced Telecommunications Computing Architecture (ATCA) Platforms, Component Object Model (COM) Express and Rackmount Servers, and Other Products.
Silicon Graphics International Corp Company Profile
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.
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