Western Digital or Seagate Technology: Which Stock Has More Upside?

Source Domain: www.trefis.com

Seagate Technology fell -8.5% during the past Day. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Western Digital gives you more. Western Digital (WDC) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Seagate Technology (STX) stock, suggesting you may be better off investing in WDC

WDC’s quarterly revenue growth was 45.5%, vs. STX’s 44.1%.
In addition, its Last 12 Months revenue growth came in at 32.0%, ahead of STX’s 28.9%.
WDC’s LTM margin is higher: 31.2% vs. STX’s 29.5%.

These differences become even clearer when you look at the financials side by side. The table highlights how STX’s fundamentals stack up against those of WDC on growth, margins, momentum, and valuation multiples.

Trefis: STX Stock Insights

Valuation & Performance Overview

	STX	WDC	Preferred

Valuation
P/EBIT Ratio	57.7	47.6	WDC

Revenue Growth
Last Quarter	44.1%	45.5%	WDC
Last 12 Months	28.9%	32.0%	WDC
Last 3 Year Average	13.2%	25.5%	WDC

Operating Margins
Last 12 Months	29.5%	31.2%	WDC
Last 3 Year Average	16.9%	12.7%	STX

Momentum
Last 3 Year Return	1408.2%	1662.8%	WDC

Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (300%) which creates risk of sell off.

See detailed fundamentals on Buy or Sell WDC Stock and Buy or Sell STX Stock. Below we compare market return and related metrics across years.

Historical Market Performance