Super Micro Computer Inc (SMCI)vsSeagate Technology PLC (STX)
SMCI
Super Micro Computer Inc
$20.53
-33.32%
TECHNOLOGY · Cap: $19.13B
STX
Seagate Technology PLC
$434.60
+6.84%
TECHNOLOGY · Cap: $97.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Super Micro Computer Inc generates 179% more annual revenue ($28.06B vs $10.06B). STX leads profitability with a 19.6% profit margin vs 3.1%. STX appears more attractively valued with a PEG of 0.67. STX earns a higher WallStSmart Score of 72/100 (B).
SMCI
Strong Buy67
out of 100
Grade: B-
STX
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.7%
Fair Value
$51.40
Current Price
$20.53
$30.87 discount
Margin of Safety
+1.9%
Fair Value
$415.12
Current Price
$434.60
$19.48 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 123.4% year-over-year
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 67.7% YoY
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Growing faster than its price suggests
Strong operational efficiency at 29.9%
Revenue surging 21.5% year-over-year
Areas to Watch
3.1% margin — thin
Operating margin of 3.7%
Weak financial health signals
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
Trading at 207.0x book value
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : STX
The strongest argument for STX centers on EPS Growth, Market Cap, Return on Equity. Profitability is solid with margins at 19.6% and operating margin at 29.9%. Revenue growth of 21.5% demonstrates continued momentum.
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.
Bear Case : STX
The primary concerns for STX are P/E Ratio, Price/Book. A P/E of 49.0x leaves little room for execution misses.
Key Dynamics to Monitor
SMCI profiles as a hypergrowth stock while STX is a growth play — different risk/reward profiles.
STX carries more volatility with a beta of 1.65 — expect wider price swings.
SMCI is growing revenue faster at 123.4% — sustainability is the question.
STX generates stronger free cash flow (618M), providing more financial flexibility.
Bottom Line
STX scores higher overall (72/100 vs 67/100), backed by strong 19.6% margins and 21.5% revenue growth. SMCI offers better value entry with a 37.7% margin of safety. Both earn "Strong Buy" and "Strong 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.
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.
Visit Website →Seagate Technology PLC
TECHNOLOGY · COMPUTER HARDWARE · USA
Seagate Technology Holdings plc, an Irish public limited company (commonly referred to as Seagate) is an American data storage company.
Compare with Other COMPUTER HARDWARE Stocks
Want to dig deeper into these stocks?