Head-To-Head Comparison: Dell Technologies (DVMT) versus Silicon Graphics International (SGI)

Silicon Graphics International (NASDAQ: SGI) and Dell Technologies (NYSE:DVMT) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Institutional and Insider Ownership

80.9% of Silicon Graphics International shares are held by institutional investors. Comparatively, 22.3% of Dell Technologies shares are held by institutional investors. 3.9% of Silicon Graphics International shares are held by insiders. Comparatively, 45.0% of Dell Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Silicon Graphics International and Dell Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Silicon Graphics International N/A N/A N/A ($0.32) N/A
Dell Technologies $61.64 billion 0.92 -$1.67 billion ($7.25) -10.22

Silicon Graphics International has higher earnings, but lower revenue than Dell Technologies. Dell Technologies is trading at a lower price-to-earnings ratio than Silicon Graphics International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Silicon Graphics International and Dell Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Silicon Graphics International 0.11% 0.98% 0.15%
Dell Technologies -4.50% 21.53% 3.14%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Silicon Graphics International and Dell Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Silicon Graphics International 0 0 2 0 3.00
Dell Technologies 0 1 3 0 2.75

Silicon Graphics International presently has a consensus price target of $2.15, indicating a potential upside of Infinity. Dell Technologies has a consensus price target of $110.00, indicating a potential upside of 49.60%. Given Silicon Graphics International’s stronger consensus rating and higher probable upside, equities analysts clearly believe Silicon Graphics International is more favorable than Dell Technologies.

Summary

Dell Technologies beats Silicon Graphics International on 6 of the 11 factors compared between the two stocks.

About Silicon Graphics International

Silicon Graphics International Corp. (SGI) is engaged in providing solutions for compute, data analytics and data management. The Company develops, markets and sells a line of mid-range and high-end scale-out and scale-up servers, enterprise-class storage, differentiating software and designed-to-order solutions for data center deployments. The Company operates through the segments, including Product and Service. The Company’s Product segment consists of compute and storage solutions, which include products from both HPC and HPDA segments. The Company’s Product segment includes scale-out computing, scale-up computing, software and cloud/Web solutions. Its storage solutions include both hardware and software offerings for data storage and management. The Service segment consists of customer service support and professional services. SGI systems enable customers to access, analyze, transform, manage and visualize information in real and near real-time.

About Dell Technologies

Dell Technologies Inc., formerly Denali Holding Inc., is a provider of information technology solutions. The Company operates through two segments: Client Solutions and Enterprise Solutions Group (ESG). The Client Solutions segment includes sales to commercial and consumer customers of desktops, thin client products and notebooks, as well as services and third-party software and peripherals closely tied to the sale of Client Solutions hardware. Its offerings include hardware, such as desktop personal computers, notebooks and tablets, and peripherals, such as monitors, printers and projectors, as well as third-party software and peripherals. The ESG segment includes servers, networking and storage, as well as services and third-party software and peripherals that are closely tied to the sale of ESG hardware. It designs, develops, manufactures, markets, sells and supports a range of products and services.

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