Seagate Technology PLC (STX) & Its Competitors Critical Contrast
Seagate Technology PLC (NASDAQ: STX) is one of 31 publicly-traded companies in the “Computer Hardware” industry, but how does it weigh in compared to its peers? We will compare Seagate Technology PLC to related businesses based on the strength of its valuation, profitability, dividends, institutional ownership, analyst recommendations, risk and earnings.
Risk and Volatility
Seagate Technology PLC has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, Seagate Technology PLC’s peers have a beta of 1.28, suggesting that their average share price is 28% more volatile than the S&P 500.
Institutional & Insider Ownership
89.9% of Seagate Technology PLC shares are owned by institutional investors. Comparatively, 62.2% of shares of all “Computer Hardware” companies are owned by institutional investors. 0.9% of Seagate Technology PLC shares are owned by insiders. Comparatively, 13.8% of shares of all “Computer Hardware” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a summary of current ratings and target prices for Seagate Technology PLC and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Seagate Technology PLC||3||21||5||1||2.13|
|Seagate Technology PLC Competitors||311||1514||3194||123||2.61|
Seagate Technology PLC currently has a consensus target price of $40.46, suggesting a potential upside of 20.60%. As a group, “Computer Hardware” companies have a potential downside of 4.25%. Given Seagate Technology PLC’s higher probable upside, research analysts clearly believe Seagate Technology PLC is more favorable than its peers.
Seagate Technology PLC pays an annual dividend of $2.52 per share and has a dividend yield of 7.5%. 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. As a group, “Computer Hardware” companies pay a dividend yield of 2.6% and pay out 58.2% of their earnings in the form of a dividend.
This table compares Seagate Technology PLC and its peers’ 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%|
|Seagate Technology PLC Competitors||4.22%||10.64%||6.36%|
Valuation and Earnings
This table compares Seagate Technology PLC and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Seagate Technology PLC||$10.77 billion||$2.05 billion||13.00|
|Seagate Technology PLC Competitors||$21.02 billion||$4.40 billion||19.57|
Seagate Technology PLC’s peers have higher revenue and earnings than Seagate Technology PLC. Seagate Technology PLC is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Seagate Technology PLC beats its peers on 8 of the 15 factors compared.
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.
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