Analyzing Samsung Electronics (OTCMKTS:SSNLF) & Seagate Technology (NASDAQ:STX)

Seagate Technology (NASDAQ:STX) and Samsung Electronics (OTCMKTS:SSNLF) are both large-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Analyst Ratings

This is a breakdown of current ratings for Seagate Technology and Samsung Electronics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seagate Technology	0	4	22	1	2.89
Samsung Electronics	0	2	0	1	2.67

Seagate Technology presently has a consensus price target of $986.00, suggesting a potential upside of 16.10%. Given Seagate Technology’s stronger consensus rating and higher probable upside, equities analysts clearly believe Seagate Technology is more favorable than Samsung Electronics.

Valuation & Earnings

This table compares Seagate Technology and Samsung Electronics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seagate Technology	$12.20 billion	15.78	$3.18 billion	$13.88	61.19
Samsung Electronics	$197.69 billion	0.09	$18.45 billion	$2.68	52.24

Samsung Electronics has higher revenue and earnings than Seagate Technology. Samsung Electronics is trading at a lower price-to-earnings ratio than Seagate Technology, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

92.9% of Seagate Technology shares are owned by institutional investors. Comparatively, 0.0% of Samsung Electronics shares are owned by institutional investors. 0.8% of Seagate Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Seagate Technology has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500. Comparatively, Samsung Electronics has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Profitability

This table compares Seagate Technology and Samsung Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seagate Technology	26.11%	369.98%	37.58%
Samsung Electronics	9.12%	N/A	N/A

Summary

Seagate Technology beats Samsung Electronics on 12 of the 14 factors compared between the two stocks.

About Seagate Technology

Seagate Technology Holdings plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It provides mass capacity storage products, including enterprise nearline hard disk drives (HDDs), enterprise nearline solid state drives (SSDs), enterprise nearline systems, video and image HDDs, and network-attached storage drives. The company also offers legacy applications comprising Mission Critical HDDs and SSDs; external storage solutions under the Seagate Ultra Touch, One Touch, and Expansion product lines, as well as under the LaCie brand name; desktop drives; notebook drives, DVR HDDs, and gaming SSDs. In addition, it provides Lyve edge-to-cloud mass capacity platform. The company sells its products primarily to OEMs, distributors, and retailers. Seagate Technology Holdings plc was founded in 1978 and is based in Dublin, Ireland.

About Samsung Electronics

Samsung Electronics Co., Ltd. engages in the consumer electronics, information technology and mobile communications, and device solutions businesses worldwide. The company offers smartphones, tablets, watches, and accessories; TVs, projectors, and sound devices; home appliances, including refrigerators, washing machines and dryers, vacuum cleaners, cooking appliances, dishwashers, air conditioners, and air purifiers; monitors and memory storage products; displays, and smart and LED signages; and other accessories. It also engages in venture capital investments, cloud services, network devices installation, semiconductor equipment maintenance services, digital advertising platforms, marketing, consulting, connected services, logistics, financing, and software design activities; toll processing of display panels and semiconductors; development and sale of network solutions; manufactures semiconductors and food; provision of repair services for electronic devices; and development and supply of semiconductor process defect and quality control software, as well as digital televisions, foundry, system large scale integration, connected car systems, audio and visual products, enterprise automation solutions, and connected services. Samsung Electronics Co., Ltd. was incorporated in 1969 and is based in Suwon, South Korea.