Head to Head Survey: Pure Storage (PSTG) versus Xyratex (XRTX)

Pure Storage (NYSE: PSTG) and Xyratex (NASDAQ:XRTX) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations for Pure Storage and Xyratex, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pure Storage 0 7 13 0 2.65
Xyratex 0 0 0 0 N/A

Pure Storage currently has a consensus price target of $18.53, suggesting a potential upside of 14.23%.

Profitability

This table compares Pure Storage and Xyratex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pure Storage -22.86% -44.96% -22.92%
Xyratex N/A N/A N/A

Insider & Institutional Ownership

37.5% of Pure Storage shares are owned by institutional investors. 41.5% of Pure Storage shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Pure Storage and Xyratex’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pure Storage $727.98 million 4.83 -$245.06 million ($1.00) -16.22
Xyratex N/A N/A N/A ($0.77) N/A

Xyratex has lower revenue, but higher earnings than Pure Storage. Pure Storage is trading at a lower price-to-earnings ratio than Xyratex, indicating that it is currently the more affordable of the two stocks.

Pure Storage Company Profile

Pure Storage, Inc. provides a data platform. The Company is focused on delivering software-defined all-flash solutions that are fast and cloud-capable for customers, enabling customers to put data to work for their businesses. Its data platform replaces storage systems designed for mechanical disk with all-flash systems optimized end-to-end for solid-state memory. Its business model replaces the forklift upgrade cycle with an Evergreen Storage model. Its primary offerings include its FlashArray and FlashBlade products, inclusive of its Purity Operating Environment (Purity OE) software, its Pure1 cloud-based software, and FlashStack, its joint converged infrastructure solution with Cisco. Its customers include large and mid-size organizations across a diverse set of industry verticals, including cloud-based software and service providers, consumer Web, education, energy, financial services, governments, healthcare, manufacturing, media, retail and telecommunications.

Xyratex Company Profile

Xyratex Ltd (Xyratex) is a provider of data storage technology, including modular solutions for the enterprise data storage industry and hard disk drive (HDD) capital equipment for the HDD industry. Xyratex operates in two segments: Networked Storage Solutions (NSS) and Storage Infrastructure (SI). Its NSS products are primarily HDD based data storage subsystems and solutions, which it provides to original equipment manufacturers. Its SI products consist of HDD manufacturing process equipment, which it sells directly to manufacturers of HDDs and their component suppliers. Its product and solution portfolio for the enterprise data storage industry includes storage enclosures, integrated application platforms and high performance computing (HPC) data storage solutions. In April 2014, Seagate Technology PLC completed the acquisition of Xyratex Ltd.

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