Pure Storage (NYSE: PSTG) and SanDisk (NASDAQ:SNDK) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitabiliy, earnings, risk, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for Pure Storage and SanDisk, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pure Storage 0 7 15 0 2.68
SanDisk 0 0 0 0 N/A

Pure Storage presently has a consensus price target of $15.68, indicating a potential upside of 15.43%. Given Pure Storage’s higher probable upside, research analysts clearly believe Pure Storage is more favorable than SanDisk.

Valuation & Earnings

This table compares Pure Storage and SanDisk’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Pure Storage $770.66 million 3.68 -$160.42 million ($1.22) -11.13
SanDisk N/A N/A N/A N/A N/A

SanDisk has higher revenue, but lower earnings than Pure Storage.

Insider and Institutional Ownership

34.4% of Pure Storage shares are owned by institutional investors. 46.6% of Pure Storage shares are owned by company 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.

Profitability

This table compares Pure Storage and SanDisk’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pure Storage -31.62% -44.04% -24.43%
SanDisk 5.74% 5.68% 3.35%

Summary

Pure Storage beats SanDisk on 5 of the 8 factors compared between the two stocks.

Pure Storage Company Profile

Pure Storage, Inc. provides a data platform. The Company is focused on delivering software-defined all-flash solutions that are fast and cloud-capable for customers, enabling customers to put data to work for their businesses. Its data platform replaces storage systems designed for mechanical disk with all-flash systems optimized end-to-end for solid-state memory. Its business model replaces the forklift upgrade cycle with an Evergreen Storage model. Its primary offerings include its FlashArray and FlashBlade products, inclusive of its Purity Operating Environment (Purity OE) software, its Pure1 cloud-based software, and FlashStack, its joint converged infrastructure solution with Cisco. Its customers include large and mid-size organizations across a diverse set of industry verticals, including cloud-based software and service providers, consumer Web, education, energy, financial services, governments, healthcare, manufacturing, media, retail and telecommunications.

SanDisk Company Profile

SanDisk Corporation offers flash storage solutions. The Company designs, develops and manufactures data storage solutions in a range of form factors using flash memory, controller, firmware and software technologies. The Company operates through flash memory storage products segment. Its solutions include a range of solid state drives (SSD), embedded products, removable cards, universal serial bus (USB), drives, wireless media drives, digital media players, and wafers and components. It offers SSDs for client computing applications, which encompass desktop computers, notebook computers, tablets and other computing devices. Its embedded products are used for embedded storage for mobile phones, tablets, notebooks and other portable and wearable devices, as well as in automotive and connected home applications. Its removable products include cards, USB flash drives, Wireless Drives and Digital Media Players at a range of storage capacities. It sells memory wafers and memory components.

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