Critical Analysis: Seagate Technology (NASDAQ:STX) & One Stop Systems (NASDAQ:OSS)

One Stop Systems (NASDAQ:OSS) and Seagate Technology (NASDAQ:STX) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Profitability

This table compares One Stop Systems and Seagate Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
One Stop Systems	12.44%	-0.24%	-0.18%
Seagate Technology	26.11%	369.98%	37.58%

Volatility and Risk

One Stop Systems has a beta of 1.46, suggesting that its stock price is 46% 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.

Analyst Ratings

This is a summary of current ratings and price targets for One Stop Systems and Seagate Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
One Stop Systems	1	1	3	1	2.67
Seagate Technology	0	4	22	1	2.89

One Stop Systems presently has a consensus target price of $16.00, suggesting a potential upside of 12.12%. Seagate Technology has a consensus target price of $986.00, suggesting a potential upside of 16.64%. Given Seagate Technology’s stronger consensus rating and higher possible upside, analysts plainly believe Seagate Technology is more favorable than One Stop Systems.

Insider and Institutional Ownership

32.7% of One Stop Systems shares are held by institutional investors. Comparatively, 92.9% of Seagate Technology shares are held by institutional investors. 3.9% of One Stop Systems shares are held by insiders. Comparatively, 0.8% of Seagate Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares One Stop Systems and Seagate Technology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
One Stop Systems	$32.22 million	10.96	$5.09 million	$0.25	57.08
Seagate Technology	$12.20 billion	15.54	$3.18 billion	$13.88	60.90

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

Summary

Seagate Technology beats One Stop Systems on 13 of the 14 factors compared between the two stocks.

About One Stop Systems

One Stop Systems, Inc. engages in the design, manufacture, and marketing of high-performance compute, high speed storage hardware and software, switch fabrics, and systems for edge deployments in the United States and internationally. The company's systems are built using the central processing unit, graphical processing unit, high-speed switch fabrics, and flash storage technologies. It provides custom servers, data acquisition platforms, compute accelerators, solid-state storage arrays, and system I/O expansion systems, as well as edge optimized industrial and panel PCs, tablets, and handheld compute devices. The company also offers ruggedized mobile tablets and handhelds that meet the specialized requirement for devices deployed at the edge in a diverse set of environmental conditions. It sells its products to multinational companies, governmental agencies, military contractors, military services, and technology providers through its website, web store, direct sales team, and original equipment manufacturer focused sales, as well as through a network of resellers and distributors. The company was founded in 1998 and is headquartered in Escondido, California.

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.