Seagate Technology (NASDAQ:STX) versus Lenovo Group (OTCMKTS:LNVGY) Head-To-Head Contrast

Lenovo Group (OTCMKTS:LNVGY) and Seagate Technology (NASDAQ:STX) are both large-cap technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Analyst Ratings

This is a summary of current recommendations for Lenovo Group and Seagate Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lenovo Group	0	1	0	1	3.00
Seagate Technology	0	4	22	1	2.89

Seagate Technology has a consensus target price of $986.00, suggesting a potential upside of 3.73%. Given Seagate Technology’s higher probable upside, analysts clearly believe Seagate Technology is more favorable than Lenovo Group.

Dividends

Lenovo Group pays an annual dividend of $1.68 per share and has a dividend yield of 2.0%. Seagate Technology pays an annual dividend of $2.96 per share and has a dividend yield of 0.3%. Lenovo Group pays out 60.6% of its earnings in the form of a dividend. Seagate Technology pays out 21.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Seagate Technology has increased its dividend for 1 consecutive years.

Insider and Institutional Ownership

0.1% of Lenovo Group shares are owned by institutional investors. Comparatively, 92.9% of Seagate Technology shares are owned by institutional investors. 0.8% of Seagate Technology shares are owned by 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.

Earnings and Valuation

This table compares Lenovo Group and Seagate Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lenovo Group	$83.08 billion	0.64	$1.91 billion	$2.77	30.71
Seagate Technology	$12.20 billion	17.67	$3.18 billion	$13.88	68.48

Seagate Technology has lower revenue, but higher earnings than Lenovo Group. Lenovo Group is trading at a lower price-to-earnings ratio than Seagate Technology, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Lenovo Group has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Seagate Technology has a beta of 2.06, suggesting that its stock price is 106% more volatile than the S&P 500.

Profitability

This table compares Lenovo Group and Seagate Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lenovo Group	2.30%	27.74%	4.21%
Seagate Technology	26.11%	369.98%	37.58%

Summary

Seagate Technology beats Lenovo Group on 14 of the 17 factors compared between the two stocks.

About Lenovo Group

Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services. It operates through Intelligent Devices Group, Infrastructure Solutions Group, and Solutions and Services Group segments. The company offers commercial and consumer personal computers, as well as servers and workstations; and a family of mobile Internet devices, including tablets and smartphones. In addition, it provides laptops, monitors, accessories, smart home and collaboration solutions, augmented and virtual reality, commercial internet of things, and smart infrastructure data center solutions. Further, the company manufactures and distributes IT products, computers, computer hardware, and peripheral equipment; and offers IT, business planning, management, supply chain, finance, administration support, procurement agency, data management, intellectual property, and investment management services. Additionally, it is involved in the retail and service business for consumer electronic products and related digital services; development, ownership, licensing, and sale of communications hardware and software; and develops software and applications. Furthermore, the company distributes smartphone, tablet, server, and storage. It operates in China, the Asia Pacific, Europe, the Middle East, Africa, and the Americas. Lenovo Group Limited was founded in 1984 and is headquartered in Quarry Bay, Hong Kong.

About Seagate Technology

Seagate Technology Holdings plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It provides mass capacity storage products, including enterprise nearline hard disk drives (HDDs), enterprise nearline solid state drives (SSDs), enterprise nearline systems, video and image HDDs, and network-attached storage drives. The company also offers legacy applications comprising Mission Critical HDDs and SSDs; external storage solutions under the Seagate Ultra Touch, One Touch, and Expansion product lines, as well as under the LaCie brand name; desktop drives; notebook drives, DVR HDDs, and gaming SSDs. In addition, it provides Lyve edge-to-cloud mass capacity platform. The company sells its products primarily to OEMs, distributors, and retailers. Seagate Technology Holdings plc was founded in 1978 and is based in Dublin, Ireland.