Pure Storage (NYSE:PSTG) vs. GSI Technology (NASDAQ:GSIT) Head-To-Head Review

Pure Storage (NYSE:PSTG) and GSI Technology (NASDAQ:GSIT) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Institutional and Insider Ownership

83.4% of Pure Storage shares are owned by institutional investors. Comparatively, 33.2% of GSI Technology shares are owned by institutional investors. 5.6% of Pure Storage shares are owned by insiders. Comparatively, 34.1% of GSI Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Pure Storage and GSI Technology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pure Storage	$3.17 billion	5.79	$106.74 million	$0.37	151.70
GSI Technology	$20.52 million	5.57	-$10.64 million	($0.42)	-9.76

Pure Storage has higher revenue and earnings than GSI Technology. GSI Technology is trading at a lower price-to-earnings ratio than Pure Storage, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Pure Storage has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, GSI Technology has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Pure Storage and GSI Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pure Storage	1	5	14	0	2.65
GSI Technology	0	0	0	0	0.00

Pure Storage currently has a consensus price target of $69.95, indicating a potential upside of 24.62%. Given Pure Storage’s stronger consensus rating and higher possible upside, analysts clearly believe Pure Storage is more favorable than GSI Technology.

Profitability

This table compares Pure Storage and GSI Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pure Storage	3.93%	13.98%	4.91%
GSI Technology	-51.85%	-46.88%	-32.42%

Summary

Pure Storage beats GSI Technology on 12 of the 14 factors compared between the two stocks.

About Pure Storage

Pure Storage, Inc. engages in the provision of data storage and management technologies, products, and services in the United States and internationally. Its Purity software is shared across its products and provides enterprise-class data services, such as always-on data reduction, data protection, and encryption, as well as storage protocols, including block, file, and object. The company also provides FlashArray integrated hardware systems, including FlashArray//X, FlashArray//C, FlashArray//XL, FlashArray//E, and FlashArray File Services for block-oriented storage, addressing databases, applications, virtual machines, and other traditional workloads; and FlashBlade integrated hardware systems comprising FlashBlade//S and FlashBlade//E for managing and processing unstructured data workloads of various types from real-time log analytics and commercial high-performance computing (HPC) to data protection and recovery. In addition, it offers cloud-native storage solutions, such as Portworx by Pure Storage, a cloud-native Kubernetes data management solution; and Portworx Data Services, a Database-as-a-Service platform for Kubernetes. Further, the company provides Pure Fusion, a Software-as-a-Service (SaaS) management plane, which enables storage administrators to unify storage arrays and optimize storage pools; Evergreen Architecture comprising Pure1, an AI-driven cloud-based management platform, as well as Evergreen//One and Evergreen//Flex data storage solutions; and Cloud Block Store, a virtual block storage array, that provides customers the flexibility to operate a hybrid cloud model with seamless data mobility across on-premises and public cloud environments. It sells its products and subscription services through direct sales force and channel partners. The company was formerly known as OS76, Inc. and changed its name to Pure Storage, Inc. in January 2010. Pure Storage, Inc. was incorporated in 2009 and is headquartered in Santa Clara, California.

About GSI Technology

GSI Technology, Inc. designs, develops, and markets semiconductor memory solutions to networking, industrial, medical, aerospace, and military customers in the United States, China, Singapore, Germany, the Netherlands, and internationally. It offers associative processing unit products, which are focuses on applications using similarity search in visual search queries for ecommerce, computer vision, drug discovery, cyber security, and service markets. The company also provides static random access memory (SRAM) products, such as SyncBurst for microprocessor cache and other applications; No Bus Turnaround SRAMs to address the needs of networking and telecom applications; SigmaQuad and SigmaDDR products for density and random transaction rate requirements of networking and telecom applications; Low Latency DRAMs, a solution for advanced data networking applications; Asynchronous, a main memory for small cache-less embedded processors for industrial electronics, measurement systems and cost-sensitive networking equipment, and other applications; and specialty SRAMs. In addition, it offers radiation-hardened and radiation-tolerant SRAMs for military/defense and aerospace applications, such as networking satellites and missiles. The company's products are used as components in its original equipment manufacturer customers' products, including routers, switches, and other networking and telecommunications products; military and aerospace applications, such as radar and guidance systems and satellites; test and measurement applications consisting of high-speed testers; automotive applications comprising smart cruise control; medical applications, including ultrasound and CAT scan equipment; and audio/video processing. It markets its products through a network of independent sales representatives and distributors. GSI Technology, Inc. was incorporated in 1995 and is headquartered in Sunnyvale, California.