SanDisk (NASDAQ: SNDK) and NetApp (NASDAQ:NTAP) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitabiliy and analyst recommendations.

Insider and Institutional Ownership

91.4% of NetApp shares are held by institutional investors. 0.5% of NetApp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for SanDisk and NetApp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SanDisk 0 0 0 0 N/A
NetApp 3 18 10 0 2.23

NetApp has a consensus price target of $41.88, suggesting a potential downside of 5.60%. Given NetApp’s higher probable upside, analysts plainly believe NetApp is more favorable than SanDisk.

Dividends

NetApp pays an annual dividend of $0.80 per share and has a dividend yield of 1.8%. SanDisk does not pay a dividend. NetApp pays out 44.2% of its earnings in the form of a dividend.

Profitability

This table compares SanDisk and NetApp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SanDisk 5.74% 5.68% 3.35%
NetApp 9.22% 21.66% 6.63%

Valuation and Earnings

This table compares SanDisk and NetApp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SanDisk N/A N/A N/A N/A N/A
NetApp $5.52 billion 2.18 $904.00 million $1.81 24.51

NetApp has higher revenue and earnings than SanDisk.

Summary

NetApp beats SanDisk on 9 of the 10 factors compared between the two stocks.

SanDisk Company Profile

SanDisk Corporation offers flash storage solutions. The Company designs, develops and manufactures data storage solutions in a range of form factors using flash memory, controller, firmware and software technologies. The Company operates through flash memory storage products segment. Its solutions include a range of solid state drives (SSD), embedded products, removable cards, universal serial bus (USB), drives, wireless media drives, digital media players, and wafers and components. It offers SSDs for client computing applications, which encompass desktop computers, notebook computers, tablets and other computing devices. Its embedded products are used for embedded storage for mobile phones, tablets, notebooks and other portable and wearable devices, as well as in automotive and connected home applications. Its removable products include cards, USB flash drives, Wireless Drives and Digital Media Players at a range of storage capacities. It sells memory wafers and memory components.

NetApp Company Profile

NetApp, Inc. (NetApp) provides software, systems and services to manage and store customer data. The Company enables enterprises, service providers, governmental organizations, and partners to envision, deploy and evolve their information technology (IT) environments. The Company offers a portfolio of products and services that satisfy a range of customer workloads across different data types and deployment models. Its data management and storage offerings help manage business productivity, performance and profitability, while providing investment protection and asset utilization. The Company’s FlexPod portfolio includes FlexPod Datacenter for core enterprise data centers and service providers, FlexPod Express for medium-sized businesses and branch offices, and FlexPod Select for data-intensive workloads. The portfolio is validated with hypervisors, operating systems, systems management tools and cloud management platforms.

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