Quantum (NYSE: QTM) and Connection (NASDAQ:CNXN) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.
Insider and Institutional Ownership
66.2% of Quantum shares are owned by institutional investors. Comparatively, 41.2% of Connection shares are owned by institutional investors. 8.6% of Quantum shares are owned by insiders. Comparatively, 57.3% of Connection shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Quantum has a beta of 2.45, suggesting that its share price is 145% more volatile than the S&P 500. Comparatively, Connection has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.
Earnings & Valuation
This table compares Quantum and Connection’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Quantum||$505.35 million||0.23||$3.64 million||$0.27||12.63|
|Connection||$2.91 billion||0.24||$54.85 million||$1.84||14.24|
Connection has higher revenue and earnings than Quantum. Quantum is trading at a lower price-to-earnings ratio than Connection, indicating that it is currently the more affordable of the two stocks.
This table compares Quantum and Connection’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for Quantum and Connection, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Quantum currently has a consensus target price of $10.00, suggesting a potential upside of 193.26%. Connection has a consensus target price of $33.00, suggesting a potential upside of 25.91%. Given Quantum’s higher possible upside, research analysts plainly believe Quantum is more favorable than Connection.
Connection beats Quantum on 9 of the 12 factors compared between the two stocks.
Quantum Corporation provides scale-out storage, archive, and data protection solutions for small businesses and multi-national enterprises in the Americas, Europe, and the Asia Pacific. The company offers StorNext 5 software and hardware that offer file sharing and archiving in purpose-built configurations of metadata controllers, expansion appliances, and disk and archive enabled libraries; Xcellis product, which optimizes workflow and shared access by combining functions into a compact, space, and energy-saving solution; and Lattus Object Storage solutions that enable high volumes of data to be available to extract valuable information. It also offers StorNext Storage Manager software; and StorNext AEL archives products, which provide near-line archiving with built-in data protection and self-healing capabilities. In addition, the company's data protection solutions comprise DXi disk systems that use deduplication technology to enhance the amount of backup data; Scalar Tape Automation Systems, which manage and protect business critical data in workgroup, medium size business, and enterprise data center environment; SuperLoader3 autoloader designed to maximize data density and performance; and iLayer, which offers monitoring, alerts, and proactive diagnostics. Further, it provides device and media products, such as removable disk drives and libraries, tape drives, and storage media. The company sells its products through a network of distributors, value-added resellers, direct marketing resellers, original equipment manufacturers, and other suppliers, as well as directly to corporate entities and government agencies. Quantum Corporation was founded in 1980 and is headquartered in San Jose, California.
PC Connection, Inc., together with its subsidiaries, provides a range of information technology (IT) solutions. The company operates through three segments: Business Solutions, Enterprise Solutions, and Public Sector Solutions. It offers IT products, such as computer systems, software and peripheral equipment, networking communications, and other products and accessories. The company also provides services comprising design, configuration, and implementation of IT solutions. In addition, publishes Connected, a quarterly publication that provides informative articles on the latest technologies and industry trends; distributes specialty catalogs to education, healthcare, and government customers; and MacConnection that publishes a catalog for the Apple market. The company markets its products and services through its Websites, such as connection.com, connection.com/enterprise, connection.com/publicsector, and macconnection.com. It serves small to medium-sized businesses (SMBs) comprising small office/home offices customers; government and educational institutions; and medium-to-large corporate accounts through outbound telemarketing and field sales and marketing programs targeted to specific customer populations, as well as through digital, Web, and print media advertising. PC Connection, Inc. was founded in 1982 and is headquartered in Merrimack, New Hampshire.
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