Seagate Technology (NASDAQ:STX) & CSP (NASDAQ:CSPI) Head to Head Analysis

CSP (NASDAQ:CSPI) and Seagate Technology (NASDAQ:STX) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for CSP and Seagate Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CSP	0	0	0	0	0.00
Seagate Technology	1	5	14	0	2.65

Seagate Technology has a consensus target price of $160.89, suggesting a potential downside of 23.79%. Given Seagate Technology’s stronger consensus rating and higher probable upside, analysts clearly believe Seagate Technology is more favorable than CSP.

Insider & Institutional Ownership

26.7% of CSP shares are owned by institutional investors. Comparatively, 92.9% of Seagate Technology shares are owned by institutional investors. 16.6% of CSP shares are owned by insiders. Comparatively, 0.8% of Seagate Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

CSP has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Seagate Technology has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.

Profitability

This table compares CSP and Seagate Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CSP	-2.78%	-3.35%	-2.35%
Seagate Technology	16.15%	-169.60%	19.70%

Dividends

CSP pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Seagate Technology pays an annual dividend of $2.88 per share and has a dividend yield of 1.4%. CSP pays out -70.6% of its earnings in the form of a dividend. Seagate Technology pays out 42.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CSP has raised its dividend for 2 consecutive years and Seagate Technology has raised its dividend for 1 consecutive years.

Earnings & Valuation

This table compares CSP and Seagate Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CSP	$55.22 million	2.01	-$330,000.00	($0.17)	-66.35
Seagate Technology	$9.10 billion	4.94	$1.47 billion	$6.77	31.18

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

Summary

Seagate Technology beats CSP on 13 of the 17 factors compared between the two stocks.

About CSP

CSP Inc. develops and markets IT integration solutions, security products, managed IT services, cloud services, purpose-built network adapters, and cluster computer systems for commercial and defense customers worldwide. It operates in two segments, Technology Solutions and High Performance Products. The Technology Solutions segment provides third-party computer hardware and software as a value-added reseller to various customers in web and infrastructure hosting, education, telecommunications, healthcare services, distribution, financial and professional services, and manufacturing industries. This segment also offers professional IT consulting services, such as planning, designing, assessment, implementation, migration, optimization, and project management; storage and virtualization solutions; enterprise security intrusion prevention, network access control, and unified threat management services; and IT security compliance services. In addition, this segment provides unified communications, wireless, and routing and switching solutions; custom software applications and solutions development and support services; optimization, maintenance, and technical support services; and managed IT services, such as monitoring, reporting, and management of alerts for the resolution and preventive general IT, as well as IT security support tasks. Further, this segment offers managed and cloud services, such as proactive monitoring and remote management of IT infrastructure, managed and hosted unified communication services, security, and backup and replication. The High Performance Products segment offers ARIA Software-Defined Security, a cybersecurity solution; ARIA Zero Trust PROTECT that stopping the attacks that are used to attack critical infrastructure applications; Myricom network adapters; and multicomputer products for digital signal processing applications in the defense markets. CSP Inc. was incorporated in 1968 and is headquartered in Lowell, Massachusetts.

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.