Analyzing Quantum (NYSE:QTM) & The Competition

Quantum (NYSE: QTM) is one of 28 publicly-traded companies in the “Computer Hardware” industry, but how does it contrast to its peers? We will compare Quantum to related businesses based on the strength of its profitability, institutional ownership, valuation, analyst recommendations, risk, dividends and earnings.

Institutional & Insider Ownership

66.1% of Quantum shares are held by institutional investors. Comparatively, 62.6% of shares of all “Computer Hardware” companies are held by institutional investors. 8.6% of Quantum shares are held by insiders. Comparatively, 10.8% of shares of all “Computer Hardware” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Quantum has a beta of 2.17, indicating that its stock price is 117% more volatile than the S&P 500. Comparatively, Quantum’s peers have a beta of 1.02, indicating that their average stock price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Quantum and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quantum 0 0 1 0 3.00
Quantum Competitors 291 1549 3284 120 2.62

Quantum currently has a consensus price target of $10.00, indicating a potential upside of 87.97%. As a group, “Computer Hardware” companies have a potential upside of 20.87%. Given Quantum’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Quantum is more favorable than its peers.

Profitability

This table compares Quantum and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quantum -1.77% -7.26% -0.83%
Quantum Competitors 4.31% 7.40% 4.77%

Valuation and Earnings

This table compares Quantum and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Quantum $505.35 million $3.64 million -22.17
Quantum Competitors $24.76 billion $3.17 billion 322.12

Quantum’s peers have higher revenue and earnings than Quantum. Quantum is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Quantum peers beat Quantum on 7 of the 12 factors compared.

Quantum Company Profile

Quantum Corporation focuses on scale-out storage, archive and data protection, providing solutions for capturing, sharing, managing and preserving digital assets over the entire data lifecycle. The Company’s end-to-end tiered storage solutions enable users to maximize the value of their data by making it accessible whenever and wherever needed, retaining it indefinitely and reducing total cost and complexity. It works with a network of distributors, value-added resellers (VARs), direct marketing resellers (DMRs), original equipment manufacturers (OEMs) and other suppliers to meet customers’ evolving needs. Its scale-out storage portfolio includes StorNext software, appliances and full systems called StorNext Pro Solutions, as well as Xcellis workflow storage, QXS disk storage, Lattus extended online storage and Q-Cloud Archive and Vault services. Its StorNext offerings enable customers to manage large unstructured data sets in an information workflow.

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