Seagate Technology (NASDAQ:STX) & Lenovo Group (OTCMKTS:LNVGY) Head to Head Survey

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seagate Technology	$12.20 billion	14.24	$3.18 billion	$13.88	55.20
Lenovo Group	$83.08 billion	0.54	$1.91 billion	$2.77	26.05

Seagate Technology has higher earnings, but lower revenue 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.

Volatility & Risk

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Seagate Technology and Lenovo Group, as reported by MarketBeat.com.

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

Seagate Technology currently has a consensus target price of $986.00, indicating a potential upside of 28.70%. Given Seagate Technology’s higher possible upside, equities research analysts clearly believe Seagate Technology is more favorable than Lenovo Group.

Profitability

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

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

Insider & Institutional Ownership

92.9% of Seagate Technology shares are owned by institutional investors. Comparatively, 0.1% of Lenovo Group shares are owned by institutional investors. 0.8% of Seagate Technology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Seagate Technology pays an annual dividend of $2.96 per share and has a dividend yield of 0.4%. Lenovo Group pays an annual dividend of $0.40 per share and has a dividend yield of 0.6%. Seagate Technology pays out 21.3% of its earnings in the form of a dividend. Lenovo Group pays out 14.4% 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 raised its dividend for 1 consecutive years. Lenovo Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Seagate Technology beats Lenovo Group on 13 of the 17 factors compared between the two stocks.

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.

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.