Analyzing Seagate Technology (NASDAQ:STX) & Digital China (OTCMKTS:DCHIF)

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

Earnings & Valuation

This table compares Digital China and Seagate Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digital China	$2.32 billion	0.28	-$35.32 million	N/A	N/A
Seagate Technology	$9.10 billion	5.09	$1.47 billion	$6.77	32.13

Seagate Technology has higher revenue and earnings than Digital China.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Digital China	N/A	N/A	N/A
Seagate Technology	16.15%	-169.60%	19.70%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Digital China and Seagate Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digital China	0	0	0	0	0.00
Seagate Technology	1	5	15	0	2.67

Seagate Technology has a consensus price target of $185.58, suggesting a potential downside of 14.68%. Given Seagate Technology’s stronger consensus rating and higher possible upside, analysts plainly believe Seagate Technology is more favorable than Digital China.

Institutional and Insider Ownership

92.9% of Seagate Technology shares are owned by institutional investors. 0.8% of Seagate Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Digital China has a beta of -0.17, meaning that its stock price is 117% less volatile than the S&P 500. Comparatively, Seagate Technology has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.

Summary

Seagate Technology beats Digital China on 11 of the 12 factors compared between the two stocks.

About Digital China

Digital China Holdings Limited, an investment holding company, provides big data products and solutions for government and enterprise customers primarily in Mainland China. The Big Data Products and Solutions segment sells data software products focused on spatial-temporal big data and artificial intelligence. This segment offers data fabric comprising Yan Cloud DaaS, a software platform that supports data sharing, interoperability, and integration of isolated digital islands; and Sysnet, an integration platform that integrates various data, applications, and services. It also provides data hub, including data management, security, innovation, and aggregation products; and digital twin, which constructs a digital replica of the physical city, as well as data solutions for city and supply chain digital native transformation, and fintech. The Software and Operating Services segment offers end-to-end data-enabled supply chain operating services, as well as software development, testing, operation, and maintenance services. The Traditional and Localization Services segment provides systems integration services, e-commerce supply chain services, and software and operating services. The segment also engages in the investments, property sales and rental, and other businesses. The company also engages in the provision of logistics, systems integration, and manpower services, as well as engages in finance lease business and investment holding activities. Digital China Holdings Limited was incorporated in 2000 and is headquartered in Wan Chai, Hong Kong.

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.