Financial Analysis: Dell Technologies (NYSE:DELL) vs. Seiko Epson (OTCMKTS:SEKEY)

Seiko Epson (OTCMKTS:SEKEY) and Dell Technologies (NYSE:DELL) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Dividends

Seiko Epson pays an annual dividend of $0.14 per share and has a dividend yield of 1.4%. Dell Technologies pays an annual dividend of $2.52 per share and has a dividend yield of 0.5%. Seiko Epson pays out 53.8% of its earnings in the form of a dividend. Dell Technologies pays out 20.0% 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. Dell Technologies has increased its dividend for 3 consecutive years.

Profitability

This table compares Seiko Epson and Dell Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seiko Epson	1.71%	2.96%	1.66%
Dell Technologies	6.28%	-366.90%	8.65%

Analyst Ratings

This is a summary of recent recommendations and price targets for Seiko Epson and Dell Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seiko Epson	0	2	0	1	2.67
Dell Technologies	1	10	20	1	2.66

Dell Technologies has a consensus price target of $492.43, indicating a potential upside of 1.64%. Given Dell Technologies’ higher possible upside, analysts plainly believe Dell Technologies is more favorable than Seiko Epson.

Valuation and Earnings

This table compares Seiko Epson and Dell Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seiko Epson	$9.39 billion	0.78	$113.84 million	$0.26	37.87
Dell Technologies	$113.54 billion	2.77	$5.94 billion	$12.59	38.48

Dell Technologies has higher revenue and earnings than Seiko Epson. Seiko Epson is trading at a lower price-to-earnings ratio than Dell Technologies, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

76.4% of Dell Technologies shares are held by institutional investors. 41.5% of Dell Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Seiko Epson has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Dell Technologies has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Summary

Dell Technologies beats Seiko Epson on 14 of the 17 factors compared between the two stocks.

About Seiko Epson

Seiko Epson Corporation, together with its subsidiaries, develops, manufactures, sells, and provides services for products in the printing solutions, visual communications, manufacturing-related and wearables, and other businesses. It operates through three segments: Printing Solutions, Visual Communications, and Manufacturing-related and Wearables segments. The Printing Solutions segment offers home and office inkjet printers, serial impact dot matrix printers, page printers, color image scanners, dry process office papermaking systems, commercial and industrial inkjet printers, inkjet printheads, printers for use in POS systems, label printers, printer consumables, and others. The Visual Communications segment provides 3LCD projectors for business, education, the home, and event; smart glasses; and others. The Manufacturing-related and Wearables segment offers wristwatches, watch movements, and others; factory automation products, industrial robots, compact injection molders, and other production systems; and crystal units, crystal oscillators, quartz sensors, and others for consumer, automotive, and industrial equipment applications. This segment also provides CMOS LSIs and other chips primarily for consumer electronics and automotive applications; and metal powders for use as raw materials in the production of electronic components, etc., as well as value-added surface finishing in a range of industrial fields. The company also sells PCs, etc. It has operations in Japan, the Philippines, the United States, Indonesia, China, and internationally. Seiko Epson Corporation was incorporated in 1942 and is headquartered in Suwa, Japan.

About Dell Technologies

Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. The company operates through two segments, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The ISG segment provides modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage; and general-purpose and AI-optimized servers. This segment also offers networking products and services comprising wide area network infrastructure, data center and edge networking switches, and cables and optics that help its business customers to transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes; software and peripherals; and consulting, support, and deployment services. The CSG segment provides desktops, workstations, and notebooks; displays, docking stations, keyboards, mice, webcam, and audio devices; and third-party software and peripherals, as well as configuration, support and deployment, and extended warranty services. It is involved in cybersecurity technology-driven security solutions to prevent security breaches, detect malicious activity, respond rapidly when a security breach occurs, and identify emerging threats; originating, collecting, and servicing customer financing arrangements; and the resale of VMware products and services. The company serves enterprises, public institutions, and small and medium-sized businesses through its direct sales channel, value-added resellers, system integrators, distributors, and retailers. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in August 2016. Dell Technologies Inc. was founded in 1984 and is headquartered in Round Rock, Texas.