Head to Head Analysis: Super Micro Computer (NASDAQ:SMCI) vs. Qualstar (OTCMKTS:QBAK)

Super Micro Computer (NASDAQ:SMCI) and Qualstar (OTCMKTS:QBAK) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Super Micro Computer and Qualstar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super Micro Computer	2	8	5	0	2.20
Qualstar	0	0	0	0	0.00

Super Micro Computer presently has a consensus price target of $43.43, indicating a potential upside of 34.08%. Given Super Micro Computer’s stronger consensus rating and higher possible upside, equities analysts clearly believe Super Micro Computer is more favorable than Qualstar.

Profitability

This table compares Super Micro Computer and Qualstar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Super Micro Computer	3.11%	13.22%	5.16%
Qualstar	8.35%	N/A	N/A

Earnings & Valuation

This table compares Super Micro Computer and Qualstar”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Super Micro Computer	$21.97 billion	0.88	$1.05 billion	$1.34	24.17
Qualstar	$8.04 million	3.24	-$470,000.00	$0.41	46.10

Super Micro Computer has higher revenue and earnings than Qualstar. Super Micro Computer is trading at a lower price-to-earnings ratio than Qualstar, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Super Micro Computer has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Qualstar has a beta of -0.26, indicating that its stock price is 126% less volatile than the S&P 500.

Insider & Institutional Ownership

84.1% of Super Micro Computer shares are held by institutional investors. 16.3% of Super Micro Computer shares are held by company insiders. Comparatively, 36.0% of Qualstar shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Super Micro Computer beats Qualstar on 10 of the 14 factors compared between the two stocks.

About Super Micro Computer

Super Micro Computer, Inc., together with its subsidiaries, develops and manufactures high performance server and storage solutions based on modular and open architecture in the United States, Europe, Asia, and internationally. Its solutions range from complete server, storage systems, modular blade servers, blades, workstations, full racks, networking devices, server sub-systems, server management software, and security software. The company provides application-optimized server solutions, rackmount and blade servers, storage, and subsystems and accessories; and server software management solutions, such as Server Management Suite, including Supermicro Server Manager, Supermicro Power Management software, Supermicro Update Manager, SuperCloud Composer, and SuperDoctor 5. In addition, it offers server subsystems and accessories comprising server boards, chassis, power supplies, and other accessories. Further, the company provides server and storage system integration, configuration, and software upgrade and update services; and technical documentation services, as well as identifies service requirements, creates and executes project plans, and conducts verification testing and technical documentation, and training services. Additionally, it offers help desk and on-site product support services for its server and storage systems; and customer support services, including ongoing maintenance and technical support for its products. The company provides its products to enterprise data centers, cloud computing, artificial intelligence, and 5G and edge computing markets. It sells its products through direct and indirect sales force, distributors, value-added resellers, system integrators, and original equipment manufacturers. The company was incorporated in 1993 and is headquartered in San Jose, California.

About Qualstar

Qualstar Corporation engages in power solutions and data storage systems businesses worldwide. The company operates through two segments, Power Solutions and Data Storage Systems. It provides data storage systems under the Qualstar brand and power solutions under the N2Power brand. The company designs, manufactures, and sells switching power supplies that are used to convert AC line voltage to DC voltages; or DC voltages to other DC voltages for use in various electronic equipment, such as telecommunications equipment, machine tools, routers, switches, wireless systems, and gaming devices. It also supports and sells data storage devices used to store, retrieve, and manage electronic data primarily in network computing environments. The company serves original equipment manufacturers, information technology departments, and lower and middle market companies through distributor and reseller network, distributors, and independent outside sales representatives. Qualstar Corporation was founded in 1984 and is based in Camarillo, California.