Comparing Seagate Technology PLC (STX) & Its Competitors

Seagate Technology PLC (NASDAQ: STX) is one of 31 public companies in the “Computer Hardware” industry, but how does it contrast to its peers? We will compare Seagate Technology PLC to similar companies based on the strength of its earnings, analyst recommendations, risk, institutional ownership, dividends, profitability and valuation.

Institutional & Insider Ownership

90.2% of Seagate Technology PLC shares are held by institutional investors. Comparatively, 62.0% of shares of all “Computer Hardware” companies are held by institutional investors. 0.9% of Seagate Technology PLC shares are held by insiders. Comparatively, 13.9% of shares of all “Computer Hardware” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Seagate Technology PLC and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seagate Technology PLC 3 18 6 1 2.18
Seagate Technology PLC Competitors 267 1409 3168 116 2.63

Seagate Technology PLC presently has a consensus target price of $40.80, indicating a potential upside of 21.79%. As a group, “Computer Hardware” companies have a potential downside of 5.48%. Given Seagate Technology PLC’s higher probable upside, research analysts plainly believe Seagate Technology PLC is more favorable than its peers.

Profitability

This table compares Seagate Technology PLC and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seagate Technology PLC 7.17% 81.87% 13.66%
Seagate Technology PLC Competitors 3.96% 10.05% 5.99%

Volatility and Risk

Seagate Technology PLC has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500. Comparatively, Seagate Technology PLC’s peers have a beta of 1.29, suggesting that their average share price is 29% more volatile than the S&P 500.

Earnings and Valuation

This table compares Seagate Technology PLC and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Seagate Technology PLC $10.77 billion $2.05 billion 12.98
Seagate Technology PLC Competitors $21.04 billion $4.38 billion 20.36

Seagate Technology PLC’s peers have higher revenue and earnings than Seagate Technology PLC. Seagate Technology PLC is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Seagate Technology PLC pays an annual dividend of $2.52 per share and has a dividend yield of 7.5%. 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. As a group, “Computer Hardware” companies pay a dividend yield of 3.2% and pay out 70.6% of their earnings in the form of a dividend.

Summary

Seagate Technology PLC beats its peers on 8 of the 15 factors compared.

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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