Western Digital (NASDAQ:WDC) and Quantum (OTCMKTS:QMCO) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Dividends

Western Digital pays an annual dividend of $2.00 per share and has a dividend yield of 4.2%. Quantum does not pay a dividend. Western Digital pays out 14.8% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Western Digital and Quantum, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Western Digital 1 15 12 0 2.39
Quantum 0 0 0 0 N/A

Western Digital currently has a consensus price target of $66.41, suggesting a potential upside of 39.25%. Given Western Digital’s higher probable upside, analysts clearly believe Western Digital is more favorable than Quantum.

Volatility & Risk

Western Digital has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, Quantum has a beta of 2.11, meaning that its share price is 111% more volatile than the S&P 500.

Valuation and Earnings

This table compares Western Digital and Quantum’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Western Digital $20.65 billion 0.67 $675.00 million $13.51 3.53
Quantum $505.35 million 0.18 $3.64 million N/A N/A

Western Digital has higher revenue and earnings than Quantum.

Profitability

This table compares Western Digital and Quantum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Western Digital 4.34% 28.88% 11.34%
Quantum N/A N/A N/A

Insider and Institutional Ownership

86.6% of Western Digital shares are owned by institutional investors. Comparatively, 52.0% of Quantum shares are owned by institutional investors. 0.4% of Western Digital shares are owned by insiders. Comparatively, 8.6% of Quantum shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Western Digital beats Quantum on 10 of the 13 factors compared between the two stocks.

Western Digital Company Profile

Western Digital Corporation develops, manufactures, and sells data storage devices and solutions worldwide. It offers client devices, including hard disk drives (HDDs) and solid state drives (SSDs) for computing devices, such as desktop and notebook PCs, security surveillance systems, gaming consoles, and set top boxes; flash-based embedded storage products for mobile phones, tablets, notebook PCs, and other portable and wearable devices, as well as automotive, IoT, industrial, and connected home applications; flash-based memory wafers; and embedded storage solutions and iNAND embedded flash products, such as multi-chip package solutions. The company also provides data center devices and solutions comprising enterprise helium hard drives; enterprise SSDs consisting of flash-based SSDs and software solutions for use in enterprise servers, online transactions, data analysis, and other enterprise applications; data center solutions, including HDDs and drive configurations for use in data storage systems and tiered storage models; system solutions that offer petabyte scalable capacity; and data storage platforms and systems. In addition, it offers client solution, such as external HDD storage products in mobile and desktop form; client SSDs; removable cards used in consumer devices comprising mobile phones, tablets, imaging systems, still cameras, action video cameras, and security surveillance systems; universal serial bus flash drives used in the computing and consumer markets; and wireless drive products for in-field back up of created content, as well as wireless streaming of high-definition movies, photos, music and documents to tablets, smartphones, and personal computers (PCs). The company sells its products under the HGST, SanDisk, and WD brands to original equipment manufacturers, distributors, resellers, cloud infrastructure players, and retailers. Western Digital Corporation was founded in 1970 and is headquartered in San Jose, California.

Quantum Company Profile

Quantum Corp. engages in the manufacture of computer storage device. It provides solutions for storing and protecting information in physical, virtual and cloud environments. The company was founded by Joel N. Harrison and James M. McCoy in 1980 and is headquartered in San Jose, CA.

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