#SiliconGraphicsInternational Corp (NASDAQ: #SGI) and #EMC (NYSE:EMC) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitabiliy, valuation, dividends, earnings, institutional ownership and analyst recommendations.
80.9% of Silicon Graphics International Corp shares are held by institutional investors. Comparatively, 79.9% of EMC shares are held by institutional investors. 3.9% of Silicon Graphics International Corp shares are held by insiders. Comparatively, 0.4% of EMC shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Silicon Graphics International Corp and EMC’s net margins, return on equity and return on assets.
Net MarginsReturn on EquityReturn on AssetsSilicon Graphics International Corp0.11%0.98%0.15%EMC10.47%10.66%5.47%
Dividends
EMC pays an annual dividend of $0.46 per share and has a dividend yield of 1.6%. Silicon Graphics International Corp does not pay a dividend. EMC pays out 43.0% of its earnings in the form of a dividend. Silicon Graphics International Corp has increased its dividend for 3 consecutive years.
Valuation and Earnings
This table compares Silicon Graphics International Corp and EMC’s gross revenue, earnings per share (EPS) and valuation.
Gross RevenuePrice/Sales RatioEBITDAEarnings Per SharePrice/Earnings RatioSilicon Graphics International CorpN/AN/AN/A($0.32)-24.22EMCN/AN/AN/A$1.0727.15
Silicon Graphics International Corp is trading at a lower price-to-earnings ratio than EMC, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings for Silicon Graphics International Corp and EMC, as reported by MarketBeat.com.
Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating ScoreSilicon Graphics International Corp01102.50EMC08202.20
Silicon Graphics International Corp presently has a consensus target price of $7.75, suggesting a potential upside of 0.00%. EMC has a consensus target price of $29.52, suggesting a potential upside of 1.63%. Given EMC’s higher possible upside, analysts plainly believe EMC is more favorable than Silicon Graphics International Corp.
Risk & Volatility
Silicon Graphics International Corp has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500. Comparatively, EMC has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.
Summary
EMC beats Silicon Graphics International Corp on 7 of the 13 factors compared between the two stocks.
Silicon Graphics International Corp Company Profile
Silicon Graphics International Corp. (SGI) is engaged in providing solutions for compute, data analytics and data management. The Company develops, markets and sells a line of mid-range and high-end scale-out and scale-up servers, enterprise-class storage, differentiating software and designed-to-order solutions for data center deployments. The Company operates through the segments, including Product and Service. The Company’s Product segment consists of compute and storage solutions, which include products from both HPC and HPDA segments. The Company’s Product segment includes scale-out computing, scale-up computing, software and cloud/Web solutions. Its storage solutions include both hardware and software offerings for data storage and management. The Service segment consists of customer service support and professional services. SGI systems enable customers to access, analyze, transform, manage and visualize information in real and near real-time.
EMC Company Profile
EMC Corporation (EMC) develops, delivers and supports the information technology (IT) industry’s range of information infrastructure and virtual infrastructure technologies, solutions and services. EMC manages the Company as part of a federation of businesses: EMC Information Infrastructure, VMware Virtual Infrastructure, Pivotal and Virtustream. EMC’s Information Infrastructure business provides a foundation for organizations to store, manage, protect, analyze and secure information. EMC’s VMware Virtual Infrastructure business is engaged in virtualization and cloud infrastructure solutions that enable businesses to help transform the way they build, deliver and consume IT resources in a manner that is based on their specific needs. EMC’s Pivotal business unites strategic technology, people and programs from EMC and VMware and has a platform that consists of data, agile development practices and a cloud independent platform-as-a-service.
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