Head to Head Analysis: Seagate Technology PLC (STX) & ScanSource (SCSC)
Seagate Technology PLC (NASDAQ: STX) and ScanSource (NASDAQ:SCSC) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.
Insider and Institutional Ownership
90.3% of Seagate Technology PLC shares are held by institutional investors. Comparatively, 94.2% of ScanSource shares are held by institutional investors. 0.9% of Seagate Technology PLC shares are held by company insiders. Comparatively, 2.4% of ScanSource 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.
This table compares Seagate Technology PLC and ScanSource’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Seagate Technology PLC||7.41%||84.50%||13.27%|
Volatility and Risk
Seagate Technology PLC has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, ScanSource has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.
Seagate Technology PLC pays an annual dividend of $2.52 per share and has a dividend yield of 6.9%. ScanSource does not pay a dividend. Seagate Technology PLC pays out 95.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of current ratings for Seagate Technology PLC and ScanSource, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Seagate Technology PLC||3||21||5||1||2.13|
Seagate Technology PLC currently has a consensus price target of $41.65, suggesting a potential upside of 13.59%. ScanSource has a consensus price target of $48.50, suggesting a potential upside of 12.92%. Given Seagate Technology PLC’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Seagate Technology PLC is more favorable than ScanSource.
Valuation & Earnings
This table compares Seagate Technology PLC and ScanSource’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Seagate Technology PLC||$10.77 billion||0.98||$2.05 billion||$2.65||13.84|
|ScanSource||$3.57 billion||0.31||$118.92 million||$2.72||15.79|
Seagate Technology PLC has higher revenue and earnings than ScanSource. Seagate Technology PLC is trading at a lower price-to-earnings ratio than ScanSource, indicating that it is currently the more affordable of the two stocks.
Seagate Technology PLC beats ScanSource on 12 of the 17 factors compared between the two stocks.
Seagate Technology PLC Company Profile
Seagate Technology public limited company is a provider of electronic data storage technology and solutions. The Company’s principal products are hard disk drives (HDDs). In addition to HDDs, it produces a range of electronic data storage products, including solid state hybrid drives, solid state drives, peripheral component interconnect express (PCIe) cards and serial advanced technology architecture (SATA) controllers. Its storage technology portfolio also includes storage subsystems and high performance computing solutions. Its products are designed for applications in enterprise servers and storage systems, client compute applications and client non-compute applications. It designs, fabricates and assembles various components found in its disk drives, including read/write heads and recording media. Its design and manufacturing operations are based on technology platforms that are used to produce various disk drive products that serve multiple data storage applications and markets.
ScanSource Company Profile
ScanSource, Inc. is a provider of technology products and solutions. The Company and its subsidiaries provide solutions for technology manufacturers and sell to resellers in technology markets, such as point-of-sale (POS) and Barcode, Networking and Security, Communications and Emerging Technologies. It operates through two segments: Worldwide Barcode & Security and Worldwide Communications & Services. The Barcode & Security distribution segment focuses on automatic identification and data capture (AIDC), POS, electronic physical security and three dimensional (3D) printing technologies. The Communications & Services distribution segment focuses on communications technologies and services. As of June 30, 2016, the Company marketed over 100,000 products from approximately 400 hardware and software vendors to approximately 35,000 reseller customers from distribution centers in Mississippi, Virginia, Florida, Mexico, Colombia, Brazil, Belgium, France, Germany and the United Kingdom.
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