Head to Head Analysis: Xerox (XRX) and Logitech (LOGI)
Xerox (NYSE: XRX) and Logitech (NASDAQ:LOGI) are both mid-cap business services companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Volatility & Risk
Xerox has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Logitech has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.
Xerox pays an annual dividend of $1.00 per share and has a dividend yield of 3.6%. Logitech pays an annual dividend of $0.41 per share and has a dividend yield of 1.1%. Xerox pays out 28.7% of its earnings in the form of a dividend. Logitech pays out 35.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Xerox has increased its dividend for 5 consecutive years. Xerox is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares Xerox and Logitech’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Xerox||$10.27 billion||0.69||$195.00 million||$3.48||8.05|
|Logitech||$2.21 billion||2.76||$205.87 million||$1.16||31.93|
Logitech has lower revenue, but higher earnings than Xerox. Xerox is trading at a lower price-to-earnings ratio than Logitech, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
85.8% of Xerox shares are held by institutional investors. Comparatively, 35.1% of Logitech shares are held by institutional investors. 0.3% of Xerox shares are held by insiders. Comparatively, 2.2% of Logitech shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Xerox and Logitech’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings for Xerox and Logitech, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Xerox presently has a consensus price target of $35.81, suggesting a potential upside of 27.86%. Logitech has a consensus price target of $45.80, suggesting a potential upside of 23.65%. Given Xerox’s stronger consensus rating and higher possible upside, analysts plainly believe Xerox is more favorable than Logitech.
Xerox beats Logitech on 10 of the 17 factors compared between the two stocks.
Xerox Company Profile
Xerox Corporation designs, develops, and sells document management systems and solutions worldwide. It offers managed document services, including managed print services and multi-channel communication services, as well as a range of digital solutions, such as workflow automation services, content management, and digitization services. The company also provides desktop monochrome and color printers, and multifunction printers; copiers, digital printing presses and light production devices, and solutions; graphic communications and commercial printers; inkjet presses; and FreeFlow portfolio of software solutions for the automation and integration of print jobs processing. In addition, it sells paper products, wide-format systems, and global imaging systems network integration solutions. The company sells its products and services directly to its customers through sales force, as well as through independent agents, dealers, value-added resellers, systems integrators, and the Web. Xerox Corporation was founded in 1906 and is headquartered in Norwalk, Connecticut.
Logitech Company Profile
Logitech International S.A., through its subsidiaries, designs, manufactures, and markets products that allow people to connect through music, gaming, video, computing, and other digital platforms worldwide. The company offers portable wireless Bluetooth speakers, PC speakers, PC headsets, in-ear headphones, and wireless audio wearables; gaming mice, keyboards, headsets, mousepads, and steering wheels and flight sticks; and audio and video, and other products that connect small and medium sized user groups. It also provides keyboards and covers for tablets and smartphones, as well as other accessories for mobile devices; pointing devices, such as PC and Mac-related mice, touchpads, and presenters; corded and cordless keyboards, living room keyboards, and keyboard-and-mouse combos; PC-based Webcams; and remote control and home automation products. The company sells its products through direct sales to retailers and e-tailers, as well as indirect sales through distributors. Its channel network includes consumer electronics distributors, retailers, mass merchandisers, specialty electronics stores, computer and telecommunications stores, value-added resellers, and online merchants. The company was founded in 1981 and is headquartered in Lausanne, Switzerland.
Receive News & Ratings for Xerox Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Xerox and related companies with MarketBeat.com's FREE daily email newsletter.