Quantum (NASDAQ:QMCO – Get Free Report) and Seagate Technology (NASDAQ:STX – Get Free Report) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Quantum and Seagate Technology, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Quantum | 1 | 0 | 5 | 0 | 2.67 |
| Seagate Technology | 0 | 5 | 23 | 0 | 2.82 |
Quantum currently has a consensus target price of $27.33, suggesting a potential upside of 99.66%. Seagate Technology has a consensus target price of $1,000.88, suggesting a potential upside of 114.54%. Given Seagate Technology’s stronger consensus rating and higher probable upside, analysts plainly believe Seagate Technology is more favorable than Quantum.
Institutional & Insider Ownership
63.7% of Quantum shares are held by institutional investors. Comparatively, 92.9% of Seagate Technology shares are held by institutional investors. 41.0% of Quantum shares are held by company insiders. Comparatively, 0.5% of Seagate Technology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Quantum and Seagate Technology”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Quantum | $279.58 million | 1.93 | -$101.05 million | ($13.24) | -1.03 |
| Seagate Technology | $12.20 billion | 8.78 | $3.18 billion | $19.04 | 24.50 |
Seagate Technology has higher revenue and earnings than Quantum. Quantum is trading at a lower price-to-earnings ratio than Seagate Technology, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Quantum and Seagate Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Quantum | -80.76% | N/A | -7.28% |
| Seagate Technology | 31.86% | 252.47% | 47.79% |
Volatility and Risk
Quantum has a beta of 3.23, suggesting that its stock price is 223% more volatile than the S&P 500. Comparatively, Seagate Technology has a beta of 2.16, suggesting that its stock price is 116% more volatile than the S&P 500.
Summary
Seagate Technology beats Quantum on 12 of the 14 factors compared between the two stocks.
About Quantum
Quantum Corporation provides products for storing and managing digital video and unstructured data in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers Myriad All-Flash File and Object Storage Software for high performance enterprise unstructured data applications such as AI, machine learning, and data analytics; Unified Surveillance Platform Software that unified compute and storage for video surveillance recording, storage, and analytics; StorNext Hybrid Flash/Disk File Storage Software for video editing, post-production, and streaming applications, as well as digital file archives; and CatDV Asset Management Software for indexing, cataloging, enriching video, audio, and image files, and workflow orchestration. It also provides ActiveScale Object Storage Software that scalable and durable storage for long term data preservation and protection; DXi Backup Appliances to build backup appliances for high-speed backup and recovery and multisite data protection; and Scalar Tape Storage that secure storage for long term data archiving and offline data protection which are used by hyperscalers and enterprises. In addition, the company sells linear tape-open (LTO) a tape drives for small business data protection and archiving; and LTO media for use in tape storage systems. Further, it offers global support, managed services, customer support agreements, software subscriptions, installation, education, and consulting and training services, as well as Quantum-as-a-Service. The company sells its products through a network of distributors, value-added resellers, direct marketing resellers, original equipment manufacturers, and other suppliers, as well as directly to corporate entities and government agencies. It has a partnership with Tiger Surveillance to deliver end-to-end solutions for long-term retention and archiving of video surveillance data. Quantum Corporation was founded in 1980 and is headquartered in San Jose, California.
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.
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