Head to Head Comparison: One Stop Systems (NASDAQ:OSS) vs. NetApp (NASDAQ:NTAP)

One Stop Systems (NASDAQ:OSS) and NetApp (NASDAQ:NTAP) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Analyst Ratings

This is a breakdown of current recommendations and price targets for One Stop Systems and NetApp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
One Stop Systems	1	1	3	1	2.67
NetApp	1	9	5	0	2.27

One Stop Systems presently has a consensus target price of $16.00, indicating a potential upside of 20.85%. NetApp has a consensus target price of $169.33, indicating a potential downside of 10.65%. Given One Stop Systems’ stronger consensus rating and higher possible upside, analysts clearly believe One Stop Systems is more favorable than NetApp.

Profitability

This table compares One Stop Systems and NetApp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
One Stop Systems	2.67%	2.21%	1.77%
NetApp	18.43%	117.23%	13.09%

Earnings and Valuation

This table compares One Stop Systems and NetApp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
One Stop Systems	$32.22 million	10.25	$5.09 million	$0.25	52.96
NetApp	$6.92 billion	5.37	$1.28 billion	$6.36	29.80

NetApp has higher revenue and earnings than One Stop Systems. NetApp is trading at a lower price-to-earnings ratio than One Stop Systems, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

One Stop Systems has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, NetApp has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.

Insider and Institutional Ownership

32.7% of One Stop Systems shares are held by institutional investors. Comparatively, 92.2% of NetApp shares are held by institutional investors. 3.9% of One Stop Systems shares are held by company insiders. Comparatively, 0.4% of NetApp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

NetApp beats One Stop Systems on 8 of the 15 factors compared between the two stocks.

About One Stop Systems

One Stop Systems, Inc. engages in the design, manufacture, and marketing of high-performance compute, high speed storage hardware and software, switch fabrics, and systems for edge deployments in the United States and internationally. The company's systems are built using the central processing unit, graphical processing unit, high-speed switch fabrics, and flash storage technologies. It provides custom servers, data acquisition platforms, compute accelerators, solid-state storage arrays, and system I/O expansion systems, as well as edge optimized industrial and panel PCs, tablets, and handheld compute devices. The company also offers ruggedized mobile tablets and handhelds that meet the specialized requirement for devices deployed at the edge in a diverse set of environmental conditions. It sells its products to multinational companies, governmental agencies, military contractors, military services, and technology providers through its website, web store, direct sales team, and original equipment manufacturer focused sales, as well as through a network of resellers and distributors. The company was founded in 1998 and is headquartered in Escondido, California.

About NetApp

NetApp, Inc. provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The company offers intelligent data management software, such as NetApp ONTAP, NetApp Snapshot, NetApp SnapCenter Backup Management, NetApp SnapMirror Data Replication, NetApp SnapLock Data Compliance, and storage infrastructure solutions, including NetApp All-Flash FAS series, NetApp Fabric Attached Storage, NetApp E/EF series, and NetApp StorageGRID. In addition, it provides cloud storage and data services comprising NetApp Cloud Volumes ONTAP, Azure NetApp Files, Amazon FSx for NetApp ONTAP, NetApp Cloud Volumes Service for Google Cloud, and cloud operations services, such as NetApp Cloud Insights, Spot by NetApp, and Instaclustr. Further, the company offers application-aware data management service under the NetApp Astra name; and professional and support services, such as strategic consulting, professional, managed, and support services. Additionally, it provides assessment, design, implementation, and migration services. The company serves the energy, financial service, government, technology, internet, life science, healthcare service, manufacturing, media, entertainment, animation, video postproduction, and markets through a direct sales force and an ecosystem of partners. NetApp, Inc. was incorporated in 1992 and is headquartered in San Jose, California.