Contrasting Super Micro Computer (NASDAQ:SMCI) and Konica Minolta (OTCMKTS:KNCAY)

Super Micro Computer (NASDAQ:SMCI) and Konica Minolta (OTCMKTS:KNCAY) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Valuation & Earnings

This table compares Super Micro Computer and Konica Minolta”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Super Micro Computer	$21.97 billion	0.87	$1.05 billion	$1.89	16.82
Konica Minolta	$7.23 billion	0.26	$199.77 million	($0.05)	-153.00

Super Micro Computer has higher revenue and earnings than Konica Minolta. Konica Minolta is trading at a lower price-to-earnings ratio than Super Micro Computer, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Super Micro Computer has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500. Comparatively, Konica Minolta has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Super Micro Computer and Konica Minolta, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super Micro Computer	2	12	4	0	2.11
Konica Minolta	0	0	0	0	0.00

Super Micro Computer currently has a consensus target price of $39.21, suggesting a potential upside of 23.33%. Given Super Micro Computer’s stronger consensus rating and higher probable upside, analysts plainly believe Super Micro Computer is more favorable than Konica Minolta.

Insider and Institutional Ownership

84.1% of Super Micro Computer shares are held by institutional investors. 16.1% of Super Micro Computer shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Super Micro Computer and Konica Minolta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Super Micro Computer	3.70%	17.49%	6.00%
Konica Minolta	N/A	N/A	N/A

Summary

Super Micro Computer beats Konica Minolta on 14 of the 14 factors compared between the two stocks.

About Super Micro Computer

Super Micro Computer, Inc., together with its subsidiaries, develops and manufactures high performance server and storage solutions based on modular and open architecture in the United States, Europe, Asia, and internationally. Its solutions range from complete server, storage systems, modular blade servers, blades, workstations, full racks, networking devices, server sub-systems, server management software, and security software. The company provides application-optimized server solutions, rackmount and blade servers, storage, and subsystems and accessories; and server software management solutions, such as Server Management Suite, including Supermicro Server Manager, Supermicro Power Management software, Supermicro Update Manager, SuperCloud Composer, and SuperDoctor 5. In addition, it offers server subsystems and accessories comprising server boards, chassis, power supplies, and other accessories. Further, the company provides server and storage system integration, configuration, and software upgrade and update services; and technical documentation services, as well as identifies service requirements, creates and executes project plans, and conducts verification testing and technical documentation, and training services. Additionally, it offers help desk and on-site product support services for its server and storage systems; and customer support services, including ongoing maintenance and technical support for its products. The company provides its products to enterprise data centers, cloud computing, artificial intelligence, and 5G and edge computing markets. It sells its products through direct and indirect sales force, distributors, value-added resellers, system integrators, and original equipment manufacturers. The company was incorporated in 1993 and is headquartered in San Jose, California.

About Konica Minolta

Konica Minolta, Inc. engages in digital workplace, professional print, healthcare, and industrial businesses in Japan, China, other Asian countries, the United States, Europe, and internationally. It develops, manufactures, and sells multi-functional peripherals, digital printing systems, and related consumables, as well as offers IT and printing solutions and services. The company also provides diagnostic imaging systems, such as digital X-ray diagnostic imaging, diagnostic ultrasound systems, and other systems; digitalization, networking, solutions, and services in the medical field; genetic testing and drug discovery support services; and primary care services. In addition, it offers measuring instruments; functional film displays; organic light emitting diode lighting products; industrial inkjet printheads; lenses for industrial and professional use; and imaging IoT and visual solutions. The company was founded in 1873 and is headquartered in Tokyo, Japan.