Western Digital (WDC) Competitors

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

Is WDC or AMAT more profitable?

Applied Materials has a net margin of 23.88% compared to Western Digital's net margin of 14.13%. Applied Materials' return on equity of 40.96% beat Western Digital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Western Digital	14.13%	24.93%	10.59%
Applied Materials	23.88%	40.96%	22.99%

Do institutionals and insiders believe in WDC or AMAT?

92.5% of Western Digital shares are owned by institutional investors. Comparatively, 80.6% of Applied Materials shares are owned by institutional investors. 0.3% of Western Digital shares are owned by insiders. Comparatively, 0.2% of Applied Materials shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Is WDC or AMAT a better dividend stock?

Western Digital pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Applied Materials pays an annual dividend of $1.84 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. Applied Materials pays out 21.9% 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. Applied Materials has raised its dividend for 8 consecutive years. Applied Materials is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has higher valuation and earnings, WDC or AMAT?

Applied Materials has higher revenue and earnings than Western Digital. Western Digital is trading at a lower price-to-earnings ratio than Applied Materials, 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	3.58	$1.89B	$5.15	18.96
Applied Materials	$27.18B	4.92	$7.18B	$8.39	20.00

Which has more volatility & risk, WDC or AMAT?

Western Digital has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, Applied Materials has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500.

Does the media favor WDC or AMAT?

In the previous week, Applied Materials had 25 more articles in the media than Western Digital. MarketBeat recorded 60 mentions for Applied Materials and 35 mentions for Western Digital. Applied Materials' average media sentiment score of 1.20 beat Western Digital's score of 1.05 indicating that Applied Materials is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Western Digital	19 Very Positive mention(s)	6 Positive mention(s)	5 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Applied Materials	41 Very Positive mention(s)	4 Positive mention(s)	8 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts recommend WDC or AMAT?

Western Digital presently has a consensus target price of $81.89, suggesting a potential downside of 16.15%. Applied Materials has a consensus target price of $192.92, suggesting a potential upside of 14.97%. Given Applied Materials' higher probable upside, analysts clearly believe Applied Materials is more favorable than Western Digital.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Western Digital	0 Sell rating(s)	3 Hold rating(s)	17 Buy rating(s)	1 Strong Buy rating(s)	2.90
Applied Materials	1 Sell rating(s)	14 Hold rating(s)	16 Buy rating(s)	0 Strong Buy rating(s)	2.48

Summary

Applied Materials beats Western Digital on 14 of the 20 factors compared between the two stocks.