Analyzing Fusion-IO (FIO) & Seagate Technology PLC (STX)

Fusion-IO (NYSE: FIO) and Seagate Technology PLC (NASDAQ:STX) are both computer hardware – nec companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitability and institutional ownership.

Profitability

This table compares Fusion-IO and Seagate Technology PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fusion-IO -30.49% -26.35% -20.81%
Seagate Technology PLC 7.41% 84.50% 13.27%

Insider and Institutional Ownership

90.3% of Seagate Technology PLC shares are held by institutional investors. 0.9% of Seagate Technology PLC shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Fusion-IO and Seagate Technology PLC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fusion-IO 0 0 0 0 N/A
Seagate Technology PLC 3 21 5 1 2.13

Seagate Technology PLC has a consensus target price of $41.65, indicating a potential upside of 10.61%.

Valuation and Earnings

This table compares Fusion-IO and Seagate Technology PLC’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Fusion-IO N/A N/A N/A ($1.01) N/A
Seagate Technology PLC $10.77 billion 1.01 $772.00 million $2.64 14.27

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

Dividends

Seagate Technology PLC pays an annual dividend of $2.52 per share and has a dividend yield of 6.7%. Fusion-IO does not pay a dividend. Seagate Technology PLC pays out 95.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Seagate Technology PLC beats Fusion-IO on 10 of the 11 factors compared between the two stocks.

Fusion-IO Company Profile

Fusion-io, Inc. provides solutions for enterprises, hyperscale datacenters, and small to medium enterprises (SMEs), that accelerates databases, virtualization, mission-critical applications, cloud computing, big data, and information systems. Its hardware and software platforms and solutions enable the acceleration of data and applications. It sells its solutions through a global direct sales force, original equipment manufacturers. The Company’s portfolio of storage memory products packages ioMemory hardware combined with its VSL software into a family of products suitable for direct, shared, and cached acceleration environments. Direct acceleration is provided by its ioDrive, ioScale, and ioFX enterprise grade PCIe-products that leverage flash and are placed in x86 servers or workstations to directly accelerate locally hosted applications. Its shared acceleration is provided by its ION Data Accelerator or ioControl software combined with ioMemory, VSL, and industry-standard servers.

Seagate Technology PLC Company Profile

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.

Receive News & Ratings for Fusion-IO Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Fusion-IO Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply