Fusion-IO (NYSE: FIO) and Logitech International (NASDAQ:LOGI) are both computer hardware – nec companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Profitability

This table compares Fusion-IO and Logitech International’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%
Logitech International 9.32% 24.58% 13.78%

Insider and Institutional Ownership

38.2% of Logitech International shares are held by institutional investors. 2.2% of Logitech International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Fusion-IO and Logitech International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fusion-IO N/A N/A N/A ($1.01) N/A
Logitech International $2.21 billion 2.42 $205.87 million $1.30 25.38

Logitech International has higher revenue and earnings than Fusion-IO. Fusion-IO is trading at a lower price-to-earnings ratio than Logitech International, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Fusion-IO and Logitech International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fusion-IO 0 0 0 0 N/A
Logitech International 0 0 4 0 3.00

Logitech International has a consensus target price of $45.00, suggesting a potential upside of 36.36%.

Dividends

Logitech International pays an annual dividend of $2.47 per share and has a dividend yield of 7.5%. Fusion-IO does not pay a dividend. Logitech International pays out 190.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Logitech International beats Fusion-IO on 9 of the 10 factors compared between the two stocks.

Fusion-IO Company Profile

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.

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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