WallStSmart

Pure Storage Inc (PSTG)vsSuper Micro Computer Inc (SMCI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Super Micro Computer Inc generates 666% more annual revenue ($28.06B vs $3.66B). PSTG leads profitability with a 5.1% profit margin vs 3.1%. SMCI appears more attractively valued with a PEG of 0.91. SMCI earns a higher WallStSmart Score of 67/100 (B-).

PSTG

Buy

59

out of 100

Grade: C

Growth: 8.0Profit: 5.0Value: 4.7Quality: 5.3
Piotroski: 4/9Altman Z: 1.22

SMCI

Strong Buy

67

out of 100

Grade: B-

Growth: 9.3Profit: 5.0Value: 10.0Quality: 7.5
Piotroski: 3/9Altman Z: 3.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PSTGSignificantly Overvalued (-195.4%)

Margin of Safety

-195.4%

Fair Value

$25.74

Current Price

$62.63

$36.89 premium

UndervaluedFair: $25.74Overvalued
SMCIUndervalued (+37.7%)

Margin of Safety

+37.7%

Fair Value

$51.40

Current Price

$20.53

$30.87 discount

UndervaluedFair: $51.40Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PSTG2 strengths · Avg: 9.0/10
EPS GrowthGrowth
140.6%10/10

Earnings expanding 140.6% YoY

Revenue GrowthGrowth
20.4%8/10

Revenue surging 20.4% year-over-year

SMCI4 strengths · Avg: 9.0/10
Revenue GrowthGrowth
123.4%10/10

Revenue surging 123.4% year-over-year

Altman Z-ScoreHealth
3.5510/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.918/10

Growing faster than its price suggests

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

PSTG4 concerns · Avg: 2.8/10
Price/BookValuation
14.3x4/10

Trading at 14.3x book value

Profit MarginProfitability
5.1%3/10

5.1% margin — thin

P/E RatioValuation
114.3x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.222/10

Distress zone — elevated risk

SMCI4 concerns · Avg: 2.8/10
Profit MarginProfitability
3.1%3/10

3.1% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-45.12M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : PSTG

The strongest argument for PSTG centers on EPS Growth, Revenue Growth. Revenue growth of 20.4% demonstrates continued momentum. PEG of 1.49 suggests the stock is reasonably priced for its growth.

Bull Case : SMCI

The strongest argument for SMCI centers on Revenue Growth, Altman Z-Score, PEG Ratio. Revenue growth of 123.4% demonstrates continued momentum. PEG of 0.91 suggests the stock is reasonably priced for its growth.

Bear Case : PSTG

The primary concerns for PSTG are Price/Book, Profit Margin, P/E Ratio. A P/E of 114.3x leaves little room for execution misses.

Bear Case : SMCI

The primary concerns for SMCI are Profit Margin, Operating Margin, Piotroski F-Score. Thin 3.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

PSTG profiles as a growth stock while SMCI is a hypergrowth play — different risk/reward profiles.

SMCI carries more volatility with a beta of 1.49 — expect wider price swings.

SMCI is growing revenue faster at 123.4% — sustainability is the question.

PSTG generates stronger free cash flow (201M), providing more financial flexibility.

Bottom Line

SMCI scores higher overall (67/100 vs 59/100) and 123.4% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Pure Storage Inc

TECHNOLOGY · COMPUTER HARDWARE · USA

Pure Storage, Inc. provides data storage technology and solutions in the United States and internationally. The company is headquartered in Mountain View, California.

Super Micro Computer Inc

TECHNOLOGY · COMPUTER HARDWARE · USA

Super Micro Computer, Inc. develops and manufactures high-performance server and storage solutions based on an open, modular architecture. The company is headquartered in San Jose, California.

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