Sandisk (SNDK) vs. The Competition Critical Survey

Sandisk (NASDAQ:SNDK) is one of 258 publicly-traded companies in the “Technology Services” industry, but how does it weigh in compared to its peers? We will compare Sandisk to related businesses based on the strength of its dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Institutional & Insider Ownership

37.7% of shares of all “Technology Services” companies are held by institutional investors. 0.2% of Sandisk shares are held by insiders. Comparatively, 19.4% of shares of all “Technology Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Sandisk and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sandisk	N/A	N/A	N/A
Sandisk Competitors	-402.66%	-643.29%	-15.53%

Analyst Recommendations

This is a summary of recent ratings and target prices for Sandisk and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sandisk	1	6	11	3	2.76
Sandisk Competitors	1124	2480	5100	286	2.51

Sandisk currently has a consensus target price of $183.00, suggesting a potential downside of 24.89%. As a group, “Technology Services” companies have a potential upside of 35.32%. Given Sandisk’s peers higher possible upside, analysts clearly believe Sandisk has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Sandisk and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sandisk	$7.78 billion	-$1.64 billion	761.41
Sandisk Competitors	$1.42 billion	$24.56 million	-0.33

Sandisk has higher revenue, but lower earnings than its peers. Sandisk is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Sandisk pays an annual dividend of $1.20 per share and has a dividend yield of 0.5%. Sandisk pays out 375.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Technology Services” companies pay a dividend yield of 1.0% and pay out 32.2% of their earnings in the form of a dividend. Sandisk lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

About Sandisk

SanDisk Corporation offers flash storage solutions. The Company designs, develops and manufactures data storage solutions in a range of form factors using flash memory, controller, firmware and software technologies. The Company operates through flash memory storage products segment. Its solutions include a range of solid state drives (SSD), embedded products, removable cards, universal serial bus (USB), drives, wireless media drives, digital media players, and wafers and components. It offers SSDs for client computing applications, which encompass desktop computers, notebook computers, tablets and other computing devices. Its embedded products are used for embedded storage for mobile phones, tablets, notebooks and other portable and wearable devices, as well as in automotive and connected home applications. Its removable products include cards, USB flash drives, Wireless Drives and Digital Media Players at a range of storage capacities. It sells memory wafers and memory components.