NTAP vs. WDC, PSTG, HPE, ASX, IOT, GIB, TER, PTC, NOK, and NET
Should you be buying NetApp stock or one of its competitors? The main competitors of NetApp include Western Digital (WDC), Pure Storage (PSTG), Hewlett Packard Enterprise (HPE), ASE Technology (ASX), Samsara (IOT), CGI (GIB), Teradyne (TER), PTC (PTC), Nokia Oyj (NOK), and Cloudflare (NET). These companies are all part of the "computer and technology" sector.
NetApp (NASDAQ:NTAP) and Western Digital (NASDAQ:WDC) are both large-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, media sentiment, risk, valuation, community ranking and profitability.
NetApp has a net margin of 15.21% compared to Western Digital's net margin of -12.87%. NetApp's return on equity of 109.49% beat Western Digital's return on equity.
NetApp has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Western Digital has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.
In the previous week, NetApp had 17 more articles in the media than Western Digital. MarketBeat recorded 31 mentions for NetApp and 14 mentions for Western Digital. Western Digital's average media sentiment score of 0.86 beat NetApp's score of 0.65 indicating that Western Digital is being referred to more favorably in the news media.
NetApp has higher earnings, but lower revenue than Western Digital. Western Digital is trading at a lower price-to-earnings ratio than NetApp, indicating that it is currently the more affordable of the two stocks.
Western Digital received 905 more outperform votes than NetApp when rated by MarketBeat users. Likewise, 74.13% of users gave Western Digital an outperform vote while only 53.86% of users gave NetApp an outperform vote.
92.2% of NetApp shares are owned by institutional investors. Comparatively, 92.5% of Western Digital shares are owned by institutional investors. 0.4% of NetApp shares are owned by company insiders. Comparatively, 0.3% of Western Digital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
NetApp presently has a consensus target price of $105.69, suggesting a potential downside of 10.14%. Western Digital has a consensus target price of $78.32, suggesting a potential upside of 3.72%. Given Western Digital's stronger consensus rating and higher probable upside, analysts clearly believe Western Digital is more favorable than NetApp.
NetApp pays an annual dividend of $2.00 per share and has a dividend yield of 1.7%. Western Digital pays an annual dividend of $2.00 per share and has a dividend yield of 2.6%. NetApp pays out 45.5% of its earnings in the form of a dividend. Western Digital pays out -40.2% 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. Western Digital is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Western Digital beats NetApp on 11 of the 20 factors compared between the two stocks.
This chart shows the number of new MarketBeat users adding NTAP and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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