Critical Contrast: GSI Technology (NASDAQ:GSIT) and Digitiliti (OTCMKTS:DIGI)

GSI Technology (NASDAQ:GSIT) and Digitiliti (OTCMKTS:DIGI) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Valuation & Earnings

This table compares GSI Technology and Digitiliti”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GSI Technology	$24.02 million	10.77	-$10.64 million	($0.44)	-16.68
Digitiliti	N/A	N/A	N/A	N/A	N/A

Digitiliti has lower revenue, but higher earnings than GSI Technology.

Volatility & Risk

GSI Technology has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Digitiliti has a beta of -0.43, suggesting that its share price is 143% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GSI Technology	-62.96%	-43.27%	-30.07%
Digitiliti	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for GSI Technology and Digitiliti, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GSI Technology	1	0	0	0	1.00
Digitiliti	0	0	0	0	0.00

Given Digitiliti’s higher possible upside, analysts clearly believe Digitiliti is more favorable than GSI Technology.

Institutional & Insider Ownership

33.2% of GSI Technology shares are held by institutional investors. 25.4% of GSI Technology shares are held by insiders. Comparatively, 3.7% of Digitiliti shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

GSI Technology beats Digitiliti on 5 of the 9 factors compared between the two stocks.

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.

About Digitiliti

Digitiliti, Inc. provides online data protection solutions to the small and medium business and small to medium enterprise markets in the United States. It offers DigiBAK, an online data backup and recovery service for various machines in a network, including desktops, laptops, and file and print servers. The company also provides DigiLIBE, an information management software that moves and manages information objects, which are human recognized content, such as a word document or an excel spreadsheet. It serves various data intensive industries, including financial services, engineering and scientific, construction, health care, education, and legal services. The company sells and supports its solutions and services through direct sales, value-added remarketers, and third-party integrators. Digitiliti, Inc. was incorporated in 2006 and is based in Breezy Point, Minnesota.