Fusion-IO (NYSE: FIO) and EMC (NYSE:EMC) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitabiliy, dividends, analyst recommendations, institutional ownership, earnings and risk.

Profitability

This table compares Fusion-IO and EMC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fusion-IO -30.49% -26.35% -20.81%
EMC 10.47% 10.66% 5.47%

Earnings & Valuation

This table compares Fusion-IO and EMC’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fusion-IO N/A N/A N/A N/A N/A
EMC N/A N/A N/A $1.07 27.15

Dividends

EMC pays an annual dividend of $0.46 per share and has a dividend yield of 1.6%. Fusion-IO does not pay a dividend. EMC pays out 43.0% of its earnings in the form of a dividend. Fusion-IO has raised its dividend for 3 consecutive years.

Insider and Institutional Ownership

79.9% of EMC shares are owned by institutional investors. 0.4% of EMC shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Fusion-IO and EMC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fusion-IO 0 0 0 0 N/A
EMC 0 8 2 0 2.20

EMC has a consensus price target of $29.52, indicating a potential upside of 1.63%. Given EMC’s higher probable upside, analysts plainly believe EMC is more favorable than Fusion-IO.

Summary

EMC beats Fusion-IO on 8 of the 10 factors compared between the two stocks.

About Fusion-IO

Fusion-io, Inc. provides solutions for enterprises, hyperscale datacenters, and small to medium enterprises (SMEs), that accelerates databases, virtualization, mission-critical applications, cloud computing, big data, and information systems. Its hardware and software platforms and solutions enable the acceleration of data and applications. It sells its solutions through a global direct sales force, original equipment manufacturers. The Company’s portfolio of storage memory products packages ioMemory hardware combined with its VSL software into a family of products suitable for direct, shared, and cached acceleration environments. Direct acceleration is provided by its ioDrive, ioScale, and ioFX enterprise grade PCIe-products that leverage flash and are placed in x86 servers or workstations to directly accelerate locally hosted applications. Its shared acceleration is provided by its ION Data Accelerator or ioControl software combined with ioMemory, VSL, and industry-standard servers.

About EMC

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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