Financial Analysis: NetApp (NASDAQ:NTAP) and Logitech International (NASDAQ:LOGI)

Logitech International (NASDAQ:LOGI) and NetApp (NASDAQ:NTAP) are both large-cap technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and price targets for Logitech International and NetApp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Logitech International	2	6	2	0	2.00
NetApp	0	10	6	0	2.38

Logitech International currently has a consensus price target of $105.29, indicating a potential upside of 3.17%. NetApp has a consensus price target of $192.07, indicating a potential upside of 3.49%. Given NetApp’s stronger consensus rating and higher possible upside, analysts clearly believe NetApp is more favorable than Logitech International.

Risk & Volatility

Logitech International has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, NetApp has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.

Insider and Institutional Ownership

45.8% of Logitech International shares are held by institutional investors. Comparatively, 92.2% of NetApp shares are held by institutional investors. 0.2% of Logitech International shares are held by company insiders. Comparatively, 0.4% of NetApp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Logitech International and NetApp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Logitech International	$4.84 billion	3.09	$711.19 million	$5.45	18.72
NetApp	$6.92 billion	5.26	$1.28 billion	$7.09	26.18

NetApp has higher revenue and earnings than Logitech International. Logitech International is trading at a lower price-to-earnings ratio than NetApp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Logitech International and NetApp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Logitech International	16.28%	37.30%	21.36%
NetApp	19.18%	119.13%	14.39%

Summary

NetApp beats Logitech International on 13 of the 14 factors compared between the two stocks.

About Logitech International

Logitech International S.A., through its subsidiaries, designs, manufactures, and markets software-enabled hardware solutions that connect people to working, creating, gaming, and streaming worldwide. The company offers products for gamers and streamers, including mice, racing wheels, headsets, keyboards, microphones, and streaming services; corded and cordless keyboards and keyboard-and-mouse combinations; pointing devices, such as wireless mice and wireless mouse products; conference room cameras, such as ConferenceCams; controllers for video conferencing room solutions; PC-based webcams, including streaming cameras and VC webcams; tablet accessories that includes keyboards for tablets; PC and VC headsets, in-ear headphones, and premium wireless earbuds; and mobile speakers and PC speakers, as well as portable wireless Bluetooth speakers. It sells its products to a network of distributors, retailers, and e-tailers who resell to retailers, value-added resellers, systems integrators, and other distributors. The company sells its products under the Logitech, Logitech G, and others. Logitech International S.A. was incorporated in 1981 and is headquartered in Lausanne, Switzerland.

About NetApp

NetApp, Inc. provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The company offers intelligent data management software, such as NetApp ONTAP, NetApp Snapshot, NetApp SnapCenter Backup Management, NetApp SnapMirror Data Replication, NetApp SnapLock Data Compliance, and storage infrastructure solutions, including NetApp All-Flash FAS series, NetApp Fabric Attached Storage, NetApp E/EF series, and NetApp StorageGRID. In addition, it provides cloud storage and data services comprising NetApp Cloud Volumes ONTAP, Azure NetApp Files, Amazon FSx for NetApp ONTAP, NetApp Cloud Volumes Service for Google Cloud, and cloud operations services, such as NetApp Cloud Insights, Spot by NetApp, and Instaclustr. Further, the company offers application-aware data management service under the NetApp Astra name; and professional and support services, such as strategic consulting, professional, managed, and support services. Additionally, it provides assessment, design, implementation, and migration services. The company serves the energy, financial service, government, technology, internet, life science, healthcare service, manufacturing, media, entertainment, animation, video postproduction, and markets through a direct sales force and an ecosystem of partners. NetApp, Inc. was incorporated in 1992 and is headquartered in San Jose, California.