Seagate Technology PLC (STX) vs. Lexmark International (LXK) Head-To-Head Review

Seagate Technology PLC (NASDAQ: STX) and Lexmark International (NYSE:LXK) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Profitability

This table compares Seagate Technology PLC and Lexmark International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seagate Technology PLC 7.17% 81.87% 13.66%
Lexmark International 2.17% 7.30% 2.01%

Institutional and Insider Ownership

90.2% of Seagate Technology PLC shares are owned by institutional investors. Comparatively, 81.8% of Lexmark International shares are owned by institutional investors. 0.9% of Seagate Technology PLC shares are owned by insiders. Comparatively, 2.8% of Lexmark International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Seagate Technology PLC has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, Lexmark International has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.

Dividends

Seagate Technology PLC pays an annual dividend of $2.52 per share and has a dividend yield of 7.4%. Lexmark International pays an annual dividend of $1.44 per share and has a dividend yield of 3.6%. Seagate Technology PLC pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lexmark International pays out -133.3% of its earnings in the form of a dividend. Lexmark International has increased its dividend for 6 consecutive years.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Seagate Technology PLC and Lexmark International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seagate Technology PLC 3 20 6 1 2.17
Lexmark International 0 0 0 0 N/A

Seagate Technology PLC presently has a consensus price target of $40.81, suggesting a potential upside of 20.58%. Given Seagate Technology PLC’s higher possible upside, equities research analysts clearly believe Seagate Technology PLC is more favorable than Lexmark International.

Earnings and Valuation

This table compares Seagate Technology PLC and Lexmark International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Seagate Technology PLC $10.77 billion 0.90 $2.05 billion $2.58 13.12
Lexmark International N/A N/A N/A ($1.08) -37.49

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

Summary

Seagate Technology PLC beats Lexmark International on 11 of the 14 factors compared between the two stocks.

About Seagate Technology PLC

Seagate Technology public limited company is a provider of electronic data storage technology and solutions. The Company’s principal products are hard disk drives (HDDs). In addition to HDDs, it produces a range of electronic data storage products, including solid state hybrid drives, solid state drives, peripheral component interconnect express (PCIe) cards and serial advanced technology architecture (SATA) controllers. Its storage technology portfolio also includes storage subsystems and high performance computing solutions. Its products are designed for applications in enterprise servers and storage systems, client compute applications and client non-compute applications. It designs, fabricates and assembles various components found in its disk drives, including read/write heads and recording media. Its design and manufacturing operations are based on technology platforms that are used to produce various disk drive products that serve multiple data storage applications and markets.

About Lexmark International

Lexmark International, Inc. is a United States-based company, which is a provider of printing and imaging products, software, solutions and services. The Company’s software scans everything from spreadsheets to medical images, and provides services to banking, healthcare, insurance and retail companies. It creates enterprise software, hardware and services that remove inefficiencies of information silos and disconnected processes. It offers various services, such as managed print services, hardware warranty and repair service, professional services and enterprise software services. It offers solutions, such as financial process automation, business process management, Web information integration and consumer loan origination. Its hardware category includes equipment collection program, and Smart multifunction product (MFP) includes device management and mobile print solutions. It produces and distributes millions of supplies each year, including ink, toner and paper.

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