Comparing Seagate Technology (NASDAQ:STX) & Diebold Nixdorf (NYSE:DBD)

Seagate Technology (NASDAQ:STX) and Diebold Nixdorf (NYSE:DBD) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Insider & Institutional Ownership

92.9% of Seagate Technology shares are owned by institutional investors. Comparatively, 97.0% of Diebold Nixdorf shares are owned by institutional investors. 0.5% of Seagate Technology shares are owned by insiders. Comparatively, 1.1% of Diebold Nixdorf shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Seagate Technology pays an annual dividend of $2.96 per share and has a dividend yield of 0.4%. Diebold Nixdorf pays an annual dividend of $0.40 per share and has a dividend yield of 0.6%. Seagate Technology pays out 21.3% of its earnings in the form of a dividend. Diebold Nixdorf pays out 13.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Seagate Technology has raised its dividend for 1 consecutive years. Diebold Nixdorf is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Seagate Technology has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500. Comparatively, Diebold Nixdorf has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Seagate Technology and Diebold Nixdorf, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seagate Technology	0	4	22	1	2.89
Diebold Nixdorf	0	0	2	1	3.33

Seagate Technology presently has a consensus price target of $986.00, indicating a potential upside of 22.77%. Diebold Nixdorf has a consensus price target of $100.00, indicating a potential upside of 57.09%. Given Diebold Nixdorf’s stronger consensus rating and higher probable upside, analysts plainly believe Diebold Nixdorf is more favorable than Seagate Technology.

Profitability

This table compares Seagate Technology and Diebold Nixdorf’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seagate Technology	26.11%	369.98%	37.58%
Diebold Nixdorf	2.87%	21.16%	5.90%

Valuation and Earnings

This table compares Seagate Technology and Diebold Nixdorf”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seagate Technology	$12.20 billion	14.98	$3.18 billion	$13.88	57.86
Diebold Nixdorf	$3.87 billion	0.56	$94.60 million	$3.06	20.80

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

Summary

Seagate Technology beats Diebold Nixdorf on 11 of the 17 factors compared between the two stocks.

About Seagate Technology

Seagate Technology Holdings plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It provides mass capacity storage products, including enterprise nearline hard disk drives (HDDs), enterprise nearline solid state drives (SSDs), enterprise nearline systems, video and image HDDs, and network-attached storage drives. The company also offers legacy applications comprising Mission Critical HDDs and SSDs; external storage solutions under the Seagate Ultra Touch, One Touch, and Expansion product lines, as well as under the LaCie brand name; desktop drives; notebook drives, DVR HDDs, and gaming SSDs. In addition, it provides Lyve edge-to-cloud mass capacity platform. The company sells its products primarily to OEMs, distributors, and retailers. Seagate Technology Holdings plc was founded in 1978 and is based in Dublin, Ireland.

About Diebold Nixdorf

Diebold Nixdorf, Incorporated engages in the automating, digitizing, and transforming the way people bank and shop worldwide. It operates through two segments, Banking and Retail. The company offers cash recyclers and dispensers, intelligent deposit terminals, teller automation tools, and kiosk technologies, as well as physical security solutions; and front-end applications for consumer connection points and back-end platforms that manage channel transactions, operations and integration, and facilitate omnichannel transactions, endpoint monitoring, remote asset management, customer marketing, merchandise management, and analytics. It also provides banking product-related services comprising proactive monitoring and rapid resolution of incidents through remote service capabilities or an on-site visit; first- and second-line maintenance, preventive maintenance, and on-demand services; managed and outsourcing services, such as business processes, solution management, upgrades, and transaction processing; and cash management services. In addition, the company offers DN Vynamic software suite to simplify and enhance the consumer experience; modular and integrated point of sale and self-checkout terminals; printers, scales, and mobile scanners; and banknote and coin processing systems, as well as ordering kiosks. Additionally, it provides retail customer's product-related services, such as on-demand and professional services; maintenance and availability services; implementation services; managed mobility services; monitoring and advanced analytics; and store life-cycle management services. The company was formerly known as Diebold, Incorporated and changed its name to Diebold Nixdorf, Incorporated in December 2016. Diebold Nixdorf, Incorporated was founded in 1859 and is headquartered in North Canton, Ohio.