GigaMedia (NASDAQ:GIGM) & Data Storage (NASDAQ:DTST) Financial Comparison

GigaMedia (NASDAQ:GIGM) and Data Storage (NASDAQ:DTST) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for GigaMedia and Data Storage, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GigaMedia	1	0	0	0	1.00
Data Storage	1	2	0	0	1.67

Volatility and Risk

GigaMedia has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, Data Storage has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Earnings & Valuation

This table compares GigaMedia and Data Storage”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GigaMedia	$3.47 million	4.47	-$1.51 million	($0.13)	-10.81
Data Storage	$1.38 million	20.89	$19.20 million	$2.14	1.86

Data Storage has lower revenue, but higher earnings than GigaMedia. GigaMedia is trading at a lower price-to-earnings ratio than Data Storage, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

13.5% of GigaMedia shares are owned by institutional investors. Comparatively, 11.6% of Data Storage shares are owned by institutional investors. 1.0% of GigaMedia shares are owned by company insiders. Comparatively, 43.8% of Data Storage shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares GigaMedia and Data Storage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GigaMedia	-43.58%	-3.87%	-3.66%
Data Storage	81.52%	-2.84%	-2.45%

Summary

Data Storage beats GigaMedia on 10 of the 12 factors compared between the two stocks.

About GigaMedia

GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company owns and operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games, as well as provides services such as player clubs, tournaments, avatars, friends and family messenger and online chatting systems, customer service, mobile platform, and customer platform. It also offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and other casual games. In addition, the company provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. GigaMedia Limited was founded in 1998 and is headquartered in Taipei, Taiwan.

About Data Storage

Data Storage Corporation provides data management and cloud solutions in the United States and internationally. It offers a suite of multi-cloud IT solutions, including cyber security solutions, which comprise ezSecurity, a security solution for endpoint security, system assessments, and risk analysis, as well as IBM system protection, including Ransomware defense. The company also provides data protection and recovery solutions, such as ezVault for offsite data protection; ezRecovery for fast data recovery; ezAvailability for real-time data replication with minimal recovery objectives; and ezMirror for data mirroring at the storage level. In addition, it offers cloud hosted production systems comprising ezHost, which delivers managed cloud services; and voice and data solutions, including Nexxis, which specializes in voice over internet protocol, internet access, and data transport solutions, which comprise dedicated internet services, SD-WAN options, and a cloud-based PBX solution. The company offers its solutions and services to businesses in healthcare, banking and finance, distribution services, manufacturing, construction, education, and government industries. Data Storage Corporation was founded in 2001 and is headquartered in Melville, New York.