Diebold Nixdorf (NYSE:DBD) and Seagate Technology (NASDAQ:STX) Critical Contrast

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

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%

Institutional and Insider Ownership

92.9% of Seagate Technology shares are held by institutional investors. Comparatively, 97.0% of Diebold Nixdorf shares are held by institutional investors. 0.8% of Seagate Technology shares are held by company insiders. Comparatively, 1.1% of Diebold Nixdorf shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Seagate Technology and Diebold Nixdorf, as provided by MarketBeat.

	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 target price of $986.00, suggesting a potential upside of 18.77%. Diebold Nixdorf has a consensus target price of $100.00, suggesting a potential upside of 51.61%. Given Diebold Nixdorf’s stronger consensus rating and higher probable upside, analysts clearly believe Diebold Nixdorf is more favorable than Seagate Technology.

Risk & Volatility

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seagate Technology	$12.20 billion	15.48	$3.18 billion	$13.88	59.81
Diebold Nixdorf	$3.81 billion	0.59	$94.60 million	$3.06	21.55

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 10 of the 14 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.