Reviewing Lexmark International (NYSE:LXK) and Silicon Graphics International Corp (SGI)
Lexmark International (NYSE: LXK) and Silicon Graphics International Corp (NASDAQ:SGI) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitabiliy and earnings.
Risk & Volatility
Lexmark International has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, Silicon Graphics International Corp has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500.
This table compares Lexmark International 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%|
Lexmark International pays an annual dividend of $1.44 per share and has a dividend yield of 3.6%. Silicon Graphics International Corp does not pay a dividend. Lexmark International pays out -133.3% of its earnings in the form of a dividend. Lexmark International has increased its dividend for 6 consecutive years.
This is a breakdown of recent ratings for Lexmark International and Silicon Graphics International Corp, 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 has a consensus price target of $7.75, suggesting a potential upside of 0.00%. Given Silicon Graphics International Corp’s higher probable upside, analysts clearly believe Silicon Graphics International Corp is more favorable than Lexmark International.
Institutional and Insider Ownership
81.8% of Lexmark International shares are held by institutional investors. Comparatively, 80.9% of Silicon Graphics International Corp shares are held by institutional investors. 2.8% of Lexmark International shares are held by insiders. Comparatively, 3.9% of Silicon Graphics International Corp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Lexmark International and Silicon Graphics International Corp’s revenue, earnings per share (EPS) 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|
Lexmark International is trading at a lower price-to-earnings ratio than Silicon Graphics International Corp, indicating that it is currently the more affordable of the two stocks.
Lexmark International beats Silicon Graphics International Corp on 7 of the 12 factors compared between the two stocks.
Lexmark International Company Profile
Lexmark International, Inc. is a United States-based company, which is a provider of printing and imaging products, software, solutions and services. The Company’s software scans everything from spreadsheets to medical images, and provides services to banking, healthcare, insurance and retail companies. It creates enterprise software, hardware and services that remove inefficiencies of information silos and disconnected processes. It offers various services, such as managed print services, hardware warranty and repair service, professional services and enterprise software services. It offers solutions, such as financial process automation, business process management, Web information integration and consumer loan origination. Its hardware category includes equipment collection program, and Smart multifunction product (MFP) includes device management and mobile print solutions. It produces and distributes millions of supplies each year, including ink, toner and paper.
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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