NetApp (NASDAQ:NTAP) vs. SanDisk (SNDK) Critical Survey

NetApp (NASDAQ: NTAP) and SanDisk (NASDAQ:SNDK) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Dividends

NetApp pays an annual dividend of $0.80 per share and has a dividend yield of 1.9%. SanDisk does not pay a dividend. NetApp pays out 44.2% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares NetApp and SanDisk’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NetApp $5.52 billion 2.04 $904.00 million $1.81 22.92
SanDisk N/A N/A N/A N/A N/A

NetApp has higher revenue and earnings than SanDisk.

Insider & Institutional Ownership

91.3% of NetApp shares are owned by institutional investors. 0.5% of NetApp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares NetApp and SanDisk’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NetApp 9.22% 21.66% 6.63%
SanDisk 5.74% 5.68% 3.35%

Analyst Recommendations

This is a summary of current ratings for NetApp and SanDisk, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NetApp 3 18 10 0 2.23
SanDisk 0 0 0 0 N/A

NetApp currently has a consensus target price of $42.00, suggesting a potential upside of 1.23%. Given NetApp’s higher possible upside, equities analysts clearly believe NetApp is more favorable than SanDisk.

Summary

NetApp beats SanDisk on 9 of the 10 factors compared between the two stocks.

About NetApp

NetApp, Inc. (NetApp) provides software, systems and services to manage and store customer data. The Company enables enterprises, service providers, governmental organizations, and partners to envision, deploy and evolve their information technology (IT) environments. The Company offers a portfolio of products and services that satisfy a range of customer workloads across different data types and deployment models. Its data management and storage offerings help manage business productivity, performance and profitability, while providing investment protection and asset utilization. The Company’s FlexPod portfolio includes FlexPod Datacenter for core enterprise data centers and service providers, FlexPod Express for medium-sized businesses and branch offices, and FlexPod Select for data-intensive workloads. The portfolio is validated with hypervisors, operating systems, systems management tools and cloud management platforms.

About SanDisk

SanDisk Corporation offers flash storage solutions. The Company designs, develops and manufactures data storage solutions in a range of form factors using flash memory, controller, firmware and software technologies. The Company operates through flash memory storage products segment. Its solutions include a range of solid state drives (SSD), embedded products, removable cards, universal serial bus (USB), drives, wireless media drives, digital media players, and wafers and components. It offers SSDs for client computing applications, which encompass desktop computers, notebook computers, tablets and other computing devices. Its embedded products are used for embedded storage for mobile phones, tablets, notebooks and other portable and wearable devices, as well as in automotive and connected home applications. Its removable products include cards, USB flash drives, Wireless Drives and Digital Media Players at a range of storage capacities. It sells memory wafers and memory components.

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