Seagate Technology (STX) Competitors

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

Does the media prefer WDC or STX?

In the previous week, Seagate Technology had 1 more articles in the media than Western Digital. MarketBeat recorded 35 mentions for Seagate Technology and 34 mentions for Western Digital. Seagate Technology's average media sentiment score of 1.13 beat Western Digital's score of 1.01 indicating that Seagate Technology is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Western Digital	24 Very Positive mention(s)	2 Positive mention(s)	6 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Seagate Technology	24 Very Positive mention(s)	2 Positive mention(s)	4 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more volatility and risk, WDC or STX?

Western Digital has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500. Comparatively, Seagate Technology has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500.

Is WDC or STX 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
Western Digital	14.13%	24.93%	10.59%
Seagate Technology	16.15%	-169.60%	19.70%

Do analysts prefer WDC or STX?

Western Digital currently has a consensus target price of $91.47, suggesting a potential downside of 30.34%. Seagate Technology has a consensus target price of $193.32, suggesting a potential downside of 23.53%. Given Seagate Technology's higher probable upside, analysts plainly believe Seagate Technology is more favorable than Western Digital.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Western Digital	0 Sell rating(s)	6 Hold rating(s)	17 Buy rating(s)	0 Strong Buy rating(s)	2.74
Seagate Technology	1 Sell rating(s)	5 Hold rating(s)	16 Buy rating(s)	1 Strong Buy rating(s)	2.74

Which has better valuation & earnings, WDC or STX?

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
Western Digital	$9.52B	4.81	$1.89B	$5.15	25.50
Seagate Technology	$9.10B	5.92	$1.47B	$6.77	37.34

Do insiders & institutionals believe in WDC or STX?

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

Is WDC or STX a better dividend stock?

Western Digital pays an annual dividend of $0.40 per share and has a dividend yield of 0.3%. Seagate Technology pays an annual dividend of $2.88 per share and has a dividend yield of 1.1%. Western Digital pays out 7.8% of its earnings in the form of a dividend. Seagate Technology pays out 42.5% 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 beats Western Digital on 13 of the 19 factors compared between the two stocks.