Dell (NASDAQ: DELL) and Western Digital Corporation (NASDAQ:WDC) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitabiliy, risk and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Dell N/A N/A N/A
Western Digital Corporation -1.32% 16.01% 5.81%

Dividends

Western Digital Corporation pays an annual dividend of $2.00 per share and has a dividend yield of 2.3%. Dell does not pay a dividend. Western Digital Corporation pays out -202.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings for Dell and Western Digital Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dell 0 0 0 0 N/A
Western Digital Corporation 0 6 26 1 2.85

Western Digital Corporation has a consensus price target of $99.48, indicating a potential upside of 12.23%. Given Western Digital Corporation’s higher probable upside, analysts plainly believe Western Digital Corporation is more favorable than Dell.

Insider & Institutional Ownership

83.1% of Western Digital Corporation shares are owned by institutional investors. 0.5% of Western Digital Corporation 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.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Dell N/A N/A N/A N/A N/A
Western Digital Corporation $17.75 billion 1.45 $3.51 billion ($0.99) -89.53

Western Digital Corporation has higher revenue and earnings than Dell.

Summary

Western Digital Corporation beats Dell on 10 of the 11 factors compared between the two stocks.

Dell Company Profile

Dell Inc. (Dell) is a global information technology company that offers its customers a range of solutions and services delivered directly by Dell and through other distribution channels. Dell is a holding company that conducts its business worldwide through its subsidiaries. The Company operates in four segments: Large Enterprise, Public, Small and Medium Business, and Consumer. The Company’s Large Enterprise customers include global and national corporate businesses. Its Public customers, which include educational institutions, government, health care, and law enforcement agencies, operate in their own communities. Its SMB segment is focused on helping small and medium-sized businesses by offering products, services, and solutions. Its Consumer segment is focused on delivering technology experience of entertainment, mobility, gaming, and design. In March 2014, the Company acquired StatSoft, a provider of advanced analytics solutions.

Western Digital Corporation Company Profile

Western Digital Corporation (Western Digital) is a developer, manufacturer and provider of data storage devices and solutions that address the needs of the information technology (IT) industry and the infrastructure that enables the proliferation of data in virtually every industry. The Company’s portfolio of offerings addresses three categories: Datacenter Devices and Solutions (capacity and performance enterprise hard disk drives (HDDs), enterprise solid state drives (SSDs), datacenter software and system solutions); Client Devices (mobile, desktop, gaming and digital video hard drives, client SSDs, embedded products and wafers), and Client Solutions (removable products, hard drive content solutions and flash content solutions). The Company develops and manufactures a portion of the recording heads and magnetic media used in its hard drive products.

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