NetApp (NASDAQ:NTAP – Get Free Report) and One Stop Systems (NASDAQ:OSS – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.
Analyst Recommendations
This is a breakdown of current ratings and target prices for NetApp and One Stop Systems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NetApp | 1 | 9 | 5 | 0 | 2.27 |
| One Stop Systems | 1 | 1 | 3 | 1 | 2.67 |
NetApp currently has a consensus target price of $169.33, indicating a potential downside of 5.14%. One Stop Systems has a consensus target price of $16.00, indicating a potential upside of 30.83%. Given One Stop Systems’ stronger consensus rating and higher possible upside, analysts clearly believe One Stop Systems is more favorable than NetApp.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NetApp | $6.92 billion | 5.06 | $1.28 billion | $6.36 | 28.07 |
| One Stop Systems | $32.22 million | 9.39 | $5.09 million | $0.25 | 48.92 |
NetApp has higher revenue and earnings than One Stop Systems. NetApp is trading at a lower price-to-earnings ratio than One Stop Systems, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
NetApp has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, One Stop Systems has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.
Insider and Institutional Ownership
92.2% of NetApp shares are held by institutional investors. Comparatively, 32.7% of One Stop Systems shares are held by institutional investors. 0.3% of NetApp shares are held by company insiders. Comparatively, 3.9% of One Stop Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares NetApp and One Stop Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NetApp | 18.43% | 117.23% | 13.09% |
| One Stop Systems | 12.44% | -0.24% | -0.18% |
Summary
NetApp beats One Stop Systems on 9 of the 15 factors compared between the two stocks.
About NetApp
NetApp, Inc. provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The company offers intelligent data management software, such as NetApp ONTAP, NetApp Snapshot, NetApp SnapCenter Backup Management, NetApp SnapMirror Data Replication, NetApp SnapLock Data Compliance, and storage infrastructure solutions, including NetApp All-Flash FAS series, NetApp Fabric Attached Storage, NetApp E/EF series, and NetApp StorageGRID. In addition, it provides cloud storage and data services comprising NetApp Cloud Volumes ONTAP, Azure NetApp Files, Amazon FSx for NetApp ONTAP, NetApp Cloud Volumes Service for Google Cloud, and cloud operations services, such as NetApp Cloud Insights, Spot by NetApp, and Instaclustr. Further, the company offers application-aware data management service under the NetApp Astra name; and professional and support services, such as strategic consulting, professional, managed, and support services. Additionally, it provides assessment, design, implementation, and migration services. The company serves the energy, financial service, government, technology, internet, life science, healthcare service, manufacturing, media, entertainment, animation, video postproduction, and markets through a direct sales force and an ecosystem of partners. NetApp, Inc. was incorporated in 1992 and is headquartered in San Jose, California.
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.
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