Super Micro Computer (NASDAQ:SMCI – Get Free Report) and GSI Technology (NASDAQ:GSIT – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.
Risk and Volatility
Super Micro Computer has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, GSI Technology has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.
Profitability
This table compares Super Micro Computer and GSI Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Super Micro Computer | 5.61% | 20.41% | 11.86% |
| GSI Technology | -51.85% | -46.88% | -32.42% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Super Micro Computer | $14.94 billion | 1.90 | $1.15 billion | $1.90 | 25.04 |
| GSI Technology | $20.52 million | 4.66 | -$10.64 million | ($0.42) | -8.17 |
Super Micro Computer has higher revenue and earnings than GSI Technology. GSI Technology is trading at a lower price-to-earnings ratio than Super Micro Computer, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Super Micro Computer and GSI Technology, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Super Micro Computer | 2 | 10 | 7 | 1 | 2.35 |
| GSI Technology | 0 | 0 | 0 | 0 | 0.00 |
Super Micro Computer presently has a consensus price target of $45.63, suggesting a potential downside of 4.11%. Given Super Micro Computer’s stronger consensus rating and higher probable upside, equities analysts clearly believe Super Micro Computer is more favorable than GSI Technology.
Institutional & Insider Ownership
84.1% of Super Micro Computer shares are held by institutional investors. Comparatively, 33.2% of GSI Technology shares are held by institutional investors. 17.6% of Super Micro Computer shares are held by insiders. Comparatively, 34.1% of GSI Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Super Micro Computer beats GSI Technology on 13 of the 15 factors compared between the two stocks.
About Super Micro Computer
Super Micro Computer, Inc., together with its subsidiaries, develops and manufactures high performance server and storage solutions based on modular and open architecture in the United States, Europe, Asia, and internationally. Its solutions range from complete server, storage systems, modular blade servers, blades, workstations, full racks, networking devices, server sub-systems, server management software, and security software. The company provides application-optimized server solutions, rackmount and blade servers, storage, and subsystems and accessories; and server software management solutions, such as Server Management Suite, including Supermicro Server Manager, Supermicro Power Management software, Supermicro Update Manager, SuperCloud Composer, and SuperDoctor 5. In addition, it offers server subsystems and accessories comprising server boards, chassis, power supplies, and other accessories. Further, the company provides server and storage system integration, configuration, and software upgrade and update services; and technical documentation services, as well as identifies service requirements, creates and executes project plans, and conducts verification testing and technical documentation, and training services. Additionally, it offers help desk and on-site product support services for its server and storage systems; and customer support services, including ongoing maintenance and technical support for its products. The company provides its products to enterprise data centers, cloud computing, artificial intelligence, and 5G and edge computing markets. It sells its products through direct and indirect sales force, distributors, value-added resellers, system integrators, and original equipment manufacturers. The company was incorporated in 1993 and is headquartered in San Jose, California.
About GSI Technology
GSI Technology, Inc. designs, develops, and markets semiconductor memory solutions to networking, industrial, medical, aerospace, and military customers in the United States, China, Singapore, Germany, the Netherlands, and internationally. It offers associative processing unit products, which are focuses on applications using similarity search in visual search queries for ecommerce, computer vision, drug discovery, cyber security, and service markets. The company also provides static random access memory (SRAM) products, such as SyncBurst for microprocessor cache and other applications; No Bus Turnaround SRAMs to address the needs of networking and telecom applications; SigmaQuad and SigmaDDR products for density and random transaction rate requirements of networking and telecom applications; Low Latency DRAMs, a solution for advanced data networking applications; Asynchronous, a main memory for small cache-less embedded processors for industrial electronics, measurement systems and cost-sensitive networking equipment, and other applications; and specialty SRAMs. In addition, it offers radiation-hardened and radiation-tolerant SRAMs for military/defense and aerospace applications, such as networking satellites and missiles. The company's products are used as components in its original equipment manufacturer customers' products, including routers, switches, and other networking and telecommunications products; military and aerospace applications, such as radar and guidance systems and satellites; test and measurement applications consisting of high-speed testers; automotive applications comprising smart cruise control; medical applications, including ultrasound and CAT scan equipment; and audio/video processing. It markets its products through a network of independent sales representatives and distributors. GSI Technology, Inc. was incorporated in 1995 and is headquartered in Sunnyvale, California.
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