Reviewing NetApp (NTAP) & HGST Technologies Santa Ana (STEC)

NetApp (NASDAQ: NTAP) and HGST Technologies Santa Ana (NASDAQ:STEC) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for NetApp and HGST Technologies Santa Ana, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NetApp 2 18 11 0 2.29
HGST Technologies Santa Ana 0 0 0 0 N/A

NetApp presently has a consensus target price of $44.96, indicating a potential upside of 1.62%.

Earnings and Valuation

This table compares NetApp and HGST Technologies Santa Ana’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
NetApp $5.52 billion 2.16 $509.00 million $2.07 21.37
HGST Technologies Santa Ana N/A N/A N/A ($2.11) N/A

NetApp has higher revenue and earnings than HGST Technologies Santa Ana. HGST Technologies Santa Ana is trading at a lower price-to-earnings ratio than NetApp, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

92.8% of NetApp shares are held by institutional investors. 0.5% of NetApp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

NetApp pays an annual dividend of $0.80 per share and has a dividend yield of 1.8%. HGST Technologies Santa Ana does not pay a dividend. NetApp pays out 38.6% of its earnings in the form of a dividend.

Profitability

This table compares NetApp and HGST Technologies Santa Ana’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NetApp 10.47% 24.13% 7.21%
HGST Technologies Santa Ana N/A N/A N/A

Summary

NetApp beats HGST Technologies Santa Ana on 9 of the 10 factors compared between the two stocks.

About NetApp

NetApp, Inc. (NetApp) provides software, systems and services to manage and store customer data. The Company enables enterprises, service providers, governmental organizations, and partners to envision, deploy and evolve their information technology (IT) environments. The Company offers a portfolio of products and services that satisfy a range of customer workloads across different data types and deployment models. Its data management and storage offerings help manage business productivity, performance and profitability, while providing investment protection and asset utilization. The Company’s FlexPod portfolio includes FlexPod Datacenter for core enterprise data centers and service providers, FlexPod Express for medium-sized businesses and branch offices, and FlexPod Select for data-intensive workloads. The portfolio is validated with hypervisors, operating systems, systems management tools and cloud management platforms.

About HGST Technologies Santa Ana

sTec, Inc. is a global provider of enterprise-class Flash-based solid-state drives (SSDs) that are designed for systems and applications that require high input and output (IO). The Company designs and develops its own SSD controllers, enhance them with firmware and integrate them with NAND flash media to manufacture SSDs. It sells its SSDs to global enterprise hardware original equipment manufacturers (OEMs), which incorporate them into products used in a variety of industries, including cloud computing, defense, e-commerce, financial services, government, healthcare, transportation, virtualization, and Web 2.0. The Company also manufacture small form factor Flash-based SSDs, cards and modules, as well as custom high-density dynamic random access memory (DRAM) modules for networking, communications and embedded industrial applications. In September 2013, Western Digital Corp announced that it has completed the acquisition of sTec, Inc.

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