Contrasting Quantum (QTM) and Pure Storage (PSTG)
Quantum (NYSE: QTM) and Pure Storage (NYSE:PSTG) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.
Insider & Institutional Ownership
70.2% of Quantum shares are held by institutional investors. Comparatively, 61.1% of Pure Storage shares are held by institutional investors. 8.6% of Quantum shares are held by company insiders. Comparatively, 15.3% of Pure Storage shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for Quantum and Pure Storage, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Quantum presently has a consensus target price of $10.00, indicating a potential upside of 170.27%. Pure Storage has a consensus target price of $21.63, indicating a potential downside of 7.90%. Given Quantum’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Quantum is more favorable than Pure Storage.
Valuation and Earnings
This table compares Quantum and Pure Storage’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Quantum||$505.35 million||0.25||$3.64 million||$0.27||13.70|
|Pure Storage||$1.02 billion||5.26||-$177.60 million||N/A||N/A|
Quantum has higher earnings, but lower revenue than Pure Storage.
This table compares Quantum and Pure Storage’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Quantum has a beta of 2.41, meaning that its stock price is 141% more volatile than the S&P 500. Comparatively, Pure Storage has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.
Quantum beats Pure Storage on 8 of the 12 factors compared between the two stocks.
Quantum Company Profile
Quantum Corporation provides scale-out storage, archive, and data protection solutions for small businesses and multi-national enterprises in the Americas, Europe, and the Asia Pacific. The company offers StorNext 5 software and hardware that offer file sharing and archiving in purpose-built configurations of metadata controllers, expansion appliances, and disk and archive enabled libraries; Xcellis product, which optimizes workflow and shared access by combining functions into a compact, space, and energy-saving solution; and Lattus Object Storage solutions that enable high volumes of data to be available to extract valuable information. It also offers StorNext Storage Manager software; and StorNext AEL archives products, which provide near-line archiving with built-in data protection and self-healing capabilities. In addition, the company's data protection solutions comprise DXi disk systems that use deduplication technology to enhance the amount of backup data; Scalar Tape Automation Systems, which manage and protect business critical data in workgroup, medium size business, and enterprise data center environment; SuperLoader3 autoloader designed to maximize data density and performance; and iLayer, which offers monitoring, alerts, and proactive diagnostics. Further, it provides device and media products, such as removable disk drives and libraries, tape drives, and storage media. The company sells its products through a network of distributors, value-added resellers, direct marketing resellers, original equipment manufacturers, and other suppliers, as well as directly to corporate entities and government agencies. Quantum Corporation was founded in 1980 and is headquartered in San Jose, California.
Pure Storage Company Profile
Pure Storage, Inc. engages in building a data platform that enables businesses to enhance performance and reduce complexity and costs worldwide. The company delivers its data platform through Purity Operating Environment, an optimized software for solid-state memory that offers enterprise-class storage and protocol services; FlashArray and FlashBlade optimized hardware products for solid-state memory to enhance the performance and density of flash, optimize its advanced software services, and reduce solution cost for customers; Pure1, a cloud-based management and support software; and FlashStack, a converged infrastructure solution. Its data platform is used for a range of storage use cases, including database applications, large-scale analytics, private and public cloud infrastructure, Webscale applications, virtual server infrastructure, and virtual desktop infrastructure; and helps customers scale their businesses through real-time and accurate analytics, increase employee productivity, improve operational efficiency, and deliver compelling user experiences to their customers and partners. The company serves large and mid-size organizations across various industries, such as cloud-based software and service providers, consumer Web, education, energy, financial services, government, healthcare, manufacturing, media, retail, and telecommunications through a network of distribution and channel partners. The company was formerly known as OS76, Inc. and changed its name to Pure Storage, Inc. in January 2010. Pure Storage, Inc. was founded in 2009 and is headquartered in Mountain View, California.
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