Head-To-Head Analysis: Xyratex (NASDAQ:XRTX) vs. NetApp (NTAP)

Xyratex (NASDAQ: XRTX) and NetApp (NASDAQ:NTAP) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Dividends

NetApp pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. Xyratex does not pay a dividend. NetApp pays out 34.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current recommendations and price targets for Xyratex and NetApp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xyratex 0 0 0 0 N/A
NetApp 2 16 13 0 2.35

NetApp has a consensus target price of $48.54, suggesting a potential downside of 15.16%.

Valuation and Earnings

This table compares Xyratex and NetApp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xyratex N/A N/A N/A ($0.77) N/A
NetApp $5.52 billion 2.77 $509.00 million $2.33 24.55

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

Profitability

This table compares Xyratex and NetApp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xyratex N/A N/A N/A
NetApp 11.49% 26.77% 7.67%

Institutional and Insider Ownership

93.9% of NetApp shares are held by institutional investors. 0.5% of NetApp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

NetApp beats Xyratex on 9 of the 10 factors compared between the two stocks.

Xyratex Company Profile

Xyratex Ltd (Xyratex) is a provider of data storage technology, including modular solutions for the enterprise data storage industry and hard disk drive (HDD) capital equipment for the HDD industry. Xyratex operates in two segments: Networked Storage Solutions (NSS) and Storage Infrastructure (SI). Its NSS products are primarily HDD based data storage subsystems and solutions, which it provides to original equipment manufacturers. Its SI products consist of HDD manufacturing process equipment, which it sells directly to manufacturers of HDDs and their component suppliers. Its product and solution portfolio for the enterprise data storage industry includes storage enclosures, integrated application platforms and high performance computing (HPC) data storage solutions. In April 2014, Seagate Technology PLC completed the acquisition of Xyratex Ltd.

NetApp Company Profile

NetApp, Inc. (NetApp) provides software, systems and services to manage and store customer data. The Company enables enterprises, service providers, governmental organizations, and partners to envision, deploy and evolve their information technology (IT) environments. The Company offers a portfolio of products and services that satisfy a range of customer workloads across different data types and deployment models. Its data management and storage offerings help manage business productivity, performance and profitability, while providing investment protection and asset utilization. The Company’s FlexPod portfolio includes FlexPod Datacenter for core enterprise data centers and service providers, FlexPod Express for medium-sized businesses and branch offices, and FlexPod Select for data-intensive workloads. The portfolio is validated with hypervisors, operating systems, systems management tools and cloud management platforms.

Receive News & Ratings for Xyratex Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Xyratex Ltd. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply