Critical Comparison: Seagate Technology PLC (STX) & Logitech International (LOGI)
Seagate Technology PLC (NASDAQ: STX) and Logitech International (NASDAQ:LOGI) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
Seagate Technology PLC pays an annual dividend of $2.52 per share and has a dividend yield of 7.8%. Logitech International pays an annual dividend of $0.57 per share and has a dividend yield of 1.6%. Seagate Technology PLC pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Logitech International pays out 46.0% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Seagate Technology PLC and Logitech International’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Seagate Technology PLC||$10.77 billion||0.88||$2.05 billion||$2.58||12.59|
|Logitech International||$2.27 billion||2.51||$251.67 million||$1.24||28.33|
Seagate Technology PLC has higher revenue and earnings than Logitech International. Seagate Technology PLC is trading at a lower price-to-earnings ratio than Logitech International, indicating that it is currently the more affordable of the two stocks.
This table compares Seagate Technology PLC and Logitech International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Seagate Technology PLC||7.17%||81.87%||13.66%|
Volatility & Risk
Seagate Technology PLC has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, Logitech International has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.
Institutional and Insider Ownership
87.3% of Seagate Technology PLC shares are owned by institutional investors. Comparatively, 37.4% of Logitech International shares are owned by institutional investors. 1.5% of Seagate Technology PLC shares are owned by company insiders. Comparatively, 2.2% of Logitech International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a summary of current recommendations and price targets for Seagate Technology PLC and Logitech International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Seagate Technology PLC||3||19||7||1||2.20|
Seagate Technology PLC currently has a consensus price target of $42.29, indicating a potential upside of 30.19%. Logitech International has a consensus price target of $36.13, indicating a potential upside of 2.83%. Given Seagate Technology PLC’s higher probable upside, research analysts clearly believe Seagate Technology PLC is more favorable than Logitech International.
Seagate Technology PLC beats Logitech International on 10 of the 17 factors compared between the two stocks.
Seagate Technology PLC Company Profile
Seagate Technology public limited company is a provider of electronic data storage technology and solutions. The Company’s principal products are hard disk drives (HDDs). In addition to HDDs, it produces a range of electronic data storage products, including solid state hybrid drives, solid state drives, peripheral component interconnect express (PCIe) cards and serial advanced technology architecture (SATA) controllers. Its storage technology portfolio also includes storage subsystems and high performance computing solutions. Its products are designed for applications in enterprise servers and storage systems, client compute applications and client non-compute applications. It designs, fabricates and assembles various components found in its disk drives, including read/write heads and recording media. Its design and manufacturing operations are based on technology platforms that are used to produce various disk drive products that serve multiple data storage applications and markets.
Logitech International Company Profile
Logitech International S.A. is a holding company. The Company designs, manufactures and markets products that allow people to connect through music, gaming, video, computing, and other digital platforms. The Company operates through peripheral segment. The Company offers its products to a network of domestic and international customers, including direct sales to retailers, e-tailers, and indirect sales through distributors. The Company’s retail network across the world includes consumer electronics distributors, retailers, mass merchandisers, specialty electronics stores, computer and telecommunications stores, value-added resellers and online merchants. Its music solutions are focused primarily on mobile speakers, including its UE BOOM family of mobile wireless speakers, its Jaybird wireless audio wearables for sports and active lifestyles, and its custom in-ear headphones. It offers a range of gaming gear for gamers, including mice, keyboards, headsets, gamepads and steering wheels.
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