Head-To-Head Survey: Quantum Corporation (QTM) vs. Seagate Technology PLC (STX)

Quantum Corporation (NYSE: QTM) and Seagate Technology PLC (NASDAQ:STX) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Dividends

Seagate Technology PLC pays an annual dividend of $2.52 per share and has a dividend yield of 7.8%. Quantum Corporation does not pay a dividend. Seagate Technology PLC pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

64.2% of Quantum Corporation shares are owned by institutional investors. Comparatively, 90.0% of Seagate Technology PLC shares are owned by institutional investors. 8.6% of Quantum Corporation shares are owned by company insiders. Comparatively, 0.9% of Seagate Technology PLC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Quantum Corporation has a beta of 2.39, suggesting that its stock price is 139% more volatile than the S&P 500. Comparatively, Seagate Technology PLC has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Quantum Corporation and Seagate Technology PLC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quantum Corporation 0 0 1 0 3.00
Seagate Technology PLC 3 21 5 1 2.13

Quantum Corporation presently has a consensus target price of $10.00, indicating a potential upside of 74.22%. Seagate Technology PLC has a consensus target price of $40.46, indicating a potential upside of 24.96%. Given Quantum Corporation’s stronger consensus rating and higher possible upside, research analysts clearly believe Quantum Corporation is more favorable than Seagate Technology PLC.

Profitability

This table compares Quantum Corporation and Seagate Technology PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quantum Corporation 0.64% -7.26% 3.87%
Seagate Technology PLC 7.17% 81.87% 13.66%

Earnings & Valuation

This table compares Quantum Corporation and Seagate Technology PLC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Quantum Corporation $505.92 million 0.39 $19.45 million $0.07 82.01
Seagate Technology PLC $10.77 billion 0.87 $2.05 billion $2.58 12.55

Seagate Technology PLC has higher revenue and earnings than Quantum Corporation. Seagate Technology PLC is trading at a lower price-to-earnings ratio than Quantum Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Seagate Technology PLC beats Quantum Corporation on 11 of the 17 factors compared between the two stocks.

About Quantum Corporation

Quantum Corporation focuses on scale-out storage, archive and data protection, providing solutions for capturing, sharing, managing and preserving digital assets over the entire data lifecycle. The Company’s end-to-end tiered storage solutions enable users to maximize the value of their data by making it accessible whenever and wherever needed, retaining it indefinitely and reducing total cost and complexity. It works with a network of distributors, value-added resellers (VARs), direct marketing resellers (DMRs), original equipment manufacturers (OEMs) and other suppliers to meet customers’ evolving needs. Its scale-out storage portfolio includes StorNext software, appliances and full systems called StorNext Pro Solutions, as well as Xcellis workflow storage, QXS disk storage, Lattus extended online storage and Q-Cloud Archive and Vault services. Its StorNext offerings enable customers to manage large unstructured data sets in an information workflow.

About Seagate Technology PLC

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.

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