Seagate Technology PLC (NASDAQ: STX) and Logitech International (NASDAQ:LOGI) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Dividends

Seagate Technology PLC pays an annual dividend of $2.52 per share and has a dividend yield of 7.8%. Logitech International pays an annual dividend of $0.57 per share and has a dividend yield of 1.6%. Seagate Technology PLC pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Logitech International pays out 46.0% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Seagate Technology PLC and Logitech International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Seagate Technology PLC $10.77 billion 0.88 $2.05 billion $2.58 12.59
Logitech International $2.27 billion 2.51 $251.67 million $1.24 28.33

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

Profitability

This table compares Seagate Technology PLC and Logitech International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seagate Technology PLC 7.17% 81.87% 13.66%
Logitech International 9.15% 25.18% 13.82%

Volatility and Risk

Seagate Technology PLC has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500. Comparatively, Logitech International has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Institutional & Insider Ownership

87.3% of Seagate Technology PLC shares are held by institutional investors. Comparatively, 37.4% of Logitech International shares are held by institutional investors. 1.5% of Seagate Technology PLC shares are held by company insiders. Comparatively, 2.2% of Logitech International shares are held by company 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Seagate Technology PLC and Logitech International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seagate Technology PLC 3 19 7 1 2.20
Logitech International 0 1 5 0 2.83

Seagate Technology PLC presently has a consensus price target of $42.29, indicating a potential upside of 30.19%. Logitech International has a consensus price target of $36.13, indicating a potential upside of 2.83%. Given Seagate Technology PLC’s higher possible upside, equities research analysts plainly believe Seagate Technology PLC is more favorable than Logitech International.

Summary

Seagate Technology PLC beats Logitech International on 10 of the 17 factors compared between the two stocks.

Seagate Technology PLC Company Profile

Seagate Technology public limited company is a provider of electronic data storage technology and solutions. The Company’s principal products are hard disk drives (HDDs). In addition to HDDs, it produces a range of electronic data storage products, including solid state hybrid drives, solid state drives, peripheral component interconnect express (PCIe) cards and serial advanced technology architecture (SATA) controllers. Its storage technology portfolio also includes storage subsystems and high performance computing solutions. Its products are designed for applications in enterprise servers and storage systems, client compute applications and client non-compute applications. It designs, fabricates and assembles various components found in its disk drives, including read/write heads and recording media. Its design and manufacturing operations are based on technology platforms that are used to produce various disk drive products that serve multiple data storage applications and markets.

Logitech International Company Profile

Logitech International S.A. is a holding company. The Company designs, manufactures and markets products that allow people to connect through music, gaming, video, computing, and other digital platforms. The Company operates through peripheral segment. The Company offers its products to a network of domestic and international customers, including direct sales to retailers, e-tailers, and indirect sales through distributors. The Company’s retail network across the world includes consumer electronics distributors, retailers, mass merchandisers, specialty electronics stores, computer and telecommunications stores, value-added resellers and online merchants. Its music solutions are focused primarily on mobile speakers, including its UE BOOM family of mobile wireless speakers, its Jaybird wireless audio wearables for sports and active lifestyles, and its custom in-ear headphones. It offers a range of gaming gear for gamers, including mice, keyboards, headsets, gamepads and steering wheels.

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