Seagate Technology (STX) Competitors

Seagate Technology (NASDAQ:STX) and Western Digital (NASDAQ:WDC) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, media sentiment, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Does the media prefer STX or WDC?

In the previous week, Western Digital had 10 more articles in the media than Seagate Technology. MarketBeat recorded 32 mentions for Western Digital and 22 mentions for Seagate Technology. Seagate Technology's average media sentiment score of 1.22 beat Western Digital's score of 0.99 indicating that Seagate Technology is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Seagate Technology	13 Very Positive mention(s)	3 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Western Digital	24 Very Positive mention(s)	2 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts prefer STX or WDC?

Seagate Technology presently has a consensus target price of $154.50, suggesting a potential downside of 7.71%. Western Digital has a consensus target price of $78.39, suggesting a potential downside of 2.43%. Given Western Digital's stronger consensus rating and higher probable upside, analysts clearly believe Western Digital is more favorable than Seagate Technology.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seagate Technology	1 Sell rating(s)	5 Hold rating(s)	14 Buy rating(s)	0 Strong Buy rating(s)	2.65
Western Digital	0 Sell rating(s)	3 Hold rating(s)	17 Buy rating(s)	1 Strong Buy rating(s)	2.90

Is STX or WDC more profitable?

Seagate Technology has a net margin of 16.15% compared to Western Digital's net margin of 14.13%. Western Digital's return on equity of 24.93% beat Seagate Technology's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Seagate Technology	16.15%	-169.60%	19.70%
Western Digital	14.13%	24.93%	10.59%

Which has more volatility and risk, STX or WDC?

Seagate Technology has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Western Digital has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500.

Do insiders and institutionals hold more shares of STX or WDC?

92.9% of Seagate Technology shares are held by institutional investors. Comparatively, 92.5% of Western Digital shares are held by institutional investors. 0.8% of Seagate Technology shares are held by company insiders. Comparatively, 0.3% of Western Digital 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.

Which has better valuation and earnings, STX or WDC?

Western Digital has higher revenue and earnings than Seagate Technology. Western Digital is trading at a lower price-to-earnings ratio than Seagate Technology, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seagate Technology	$9.10B	3.91	$1.47B	$6.77	24.73
Western Digital	$9.52B	2.94	$1.89B	$5.15	15.60

Is STX or WDC a better dividend stock?

Seagate Technology pays an annual dividend of $2.88 per share and has a dividend yield of 1.7%. Western Digital pays an annual dividend of $0.40 per share and has a dividend yield of 0.5%. Seagate Technology pays out 42.5% of its earnings in the form of a dividend. Western Digital pays out 7.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Seagate Technology has raised its dividend for 1 consecutive years. Seagate Technology is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Seagate Technology and Western Digital tied by winning 10 of the 20 factors compared between the two stocks.