HGST Technologies Santa Ana (NASDAQ: STEC) and NetApp (NASDAQ:NTAP) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Profitability

This table compares HGST Technologies Santa Ana and NetApp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HGST Technologies Santa Ana N/A N/A N/A
NetApp 11.49% 26.77% 7.67%

Institutional & Insider Ownership

97.3% of NetApp shares are owned by institutional investors. 0.5% of NetApp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares HGST Technologies Santa Ana and NetApp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
HGST Technologies Santa Ana N/A N/A N/A ($2.11) N/A
NetApp $5.52 billion 2.76 $509.00 million $2.33 24.21

NetApp has higher revenue and earnings than HGST Technologies Santa Ana. HGST Technologies Santa Ana is trading at a lower price-to-earnings ratio than NetApp, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for HGST Technologies Santa Ana and NetApp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HGST Technologies Santa Ana 0 0 0 0 N/A
NetApp 2 17 12 0 2.32

NetApp has a consensus target price of $48.54, indicating a potential downside of 13.95%.

Dividends

NetApp pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. HGST Technologies Santa Ana does not pay a dividend. NetApp pays out 34.3% of its earnings in the form of a dividend.

Summary

NetApp beats HGST Technologies Santa Ana on 9 of the 10 factors compared between the two stocks.

About HGST Technologies Santa Ana

sTec, Inc. is a global provider of enterprise-class Flash-based solid-state drives (SSDs) that are designed for systems and applications that require high input and output (IO). The Company designs and develops its own SSD controllers, enhance them with firmware and integrate them with NAND flash media to manufacture SSDs. It sells its SSDs to global enterprise hardware original equipment manufacturers (OEMs), which incorporate them into products used in a variety of industries, including cloud computing, defense, e-commerce, financial services, government, healthcare, transportation, virtualization, and Web 2.0. The Company also manufacture small form factor Flash-based SSDs, cards and modules, as well as custom high-density dynamic random access memory (DRAM) modules for networking, communications and embedded industrial applications. In September 2013, Western Digital Corp announced that it has completed the acquisition of sTec, Inc.

About NetApp

NetApp, Inc. (NetApp) provides software, systems and services to manage and store customer data. The Company enables enterprises, service providers, governmental organizations, and partners to envision, deploy and evolve their information technology (IT) environments. The Company offers a portfolio of products and services that satisfy a range of customer workloads across different data types and deployment models. Its data management and storage offerings help manage business productivity, performance and profitability, while providing investment protection and asset utilization. The Company’s FlexPod portfolio includes FlexPod Datacenter for core enterprise data centers and service providers, FlexPod Express for medium-sized businesses and branch offices, and FlexPod Select for data-intensive workloads. The portfolio is validated with hypervisors, operating systems, systems management tools and cloud management platforms.

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