Western Digital Corporation (NASDAQ: WDC) and Nimble Storage (NYSE:NMBL) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitabiliy, analyst recommendations, risk, dividends, earnings and valuation.

Analyst Ratings

This is a summary of current ratings and target prices for Western Digital Corporation and Nimble Storage, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Western Digital Corporation 0 5 28 1 2.88
Nimble Storage 0 16 3 0 2.16

Western Digital Corporation currently has a consensus price target of $105.66, indicating a potential upside of 33.43%. Nimble Storage has a consensus price target of $12.65, indicating a potential upside of 1.31%. Given Western Digital Corporation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Western Digital Corporation is more favorable than Nimble Storage.

Profitability

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

Net Margins Return on Equity Return on Assets
Western Digital Corporation 2.08% 21.23% 7.96%
Nimble Storage -31.11% -130.73% -44.52%

Insider & Institutional Ownership

82.4% of Western Digital Corporation shares are held by institutional investors. Comparatively, 63.4% of Nimble Storage shares are held by institutional investors. 0.5% of Western Digital Corporation shares are held by insiders. Comparatively, 20.9% of Nimble Storage shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Western Digital Corporation pays an annual dividend of $2.00 per share and has a dividend yield of 2.5%. Nimble Storage does not pay a dividend. Western Digital Corporation pays out 156.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Western Digital Corporation $19.09 billion 1.21 $4.40 billion $1.28 61.87
Nimble Storage N/A N/A N/A ($1.83) -6.83

Western Digital Corporation has higher revenue and earnings than Nimble Storage. Nimble Storage is trading at a lower price-to-earnings ratio than Western Digital Corporation, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Western Digital Corporation has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Nimble Storage has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500.

Summary

Western Digital Corporation beats Nimble Storage on 11 of the 14 factors compared between the two stocks.

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.

Nimble Storage Company Profile

Nimble Storage, Inc. (Nimble Storage) focuses on providing its end-customers with data. The Company’s Predictive Cloud Platform combines predictive analytics, flash storage and multicloud infrastructure to manage operations in on-premises data centers and in the cloud. Its products allow end-customers to deploy workloads flexibly on flash arrays, converged infrastructure and the public cloud. Its operating system includes NimbleOS. NimbleOS runs across all of its All Flash and Adaptive Flash (Hybrid) arrays and powers Nimble Cloud Volumes. The features of NimbleOS include Cache Accelerated Sequential Layout (CASL), Variable Block Inline Deduplication, Variable Block Inline Compression, Efficient All Flash Array Architecture, Dynamic Caching for Adaptive Flash Arrays, Efficient, Instant Snapshots and Replication, SmartSecure Encryption and Data Shredding and Scalability.

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