Super Micro Computer Inc (SMCI)vsSeagate Technology PLC (STX)
SMCI
Super Micro Computer Inc
$27.09
-1.13%
TECHNOLOGY · Cap: $16.27B
STX
Seagate Technology PLC
$738.54
+1.60%
TECHNOLOGY · Cap: $163.00B
Smart Verdict
WallStSmart Research — data-driven comparison
Super Micro Computer Inc generates 155% more annual revenue ($28.06B vs $11.01B). STX leads profitability with a 21.6% profit margin vs 3.1%. STX appears more attractively valued with a PEG of 0.50. STX earns a higher WallStSmart Score of 76/100 (B+).
SMCI
Strong Buy67
out of 100
Grade: B-
STX
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+85.2%
Fair Value
$216.33
Current Price
$27.09
$189.24 discount
Intrinsic value data unavailable for STX.
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
Growing faster than its price suggests
Strong operational efficiency at 35.7%
Revenue surging 44.1% year-over-year
Earnings expanding 108.3% YoY
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
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 351.7x 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 PEG Ratio, Operating Margin, Revenue Growth. Profitability is solid with margins at 21.6% and operating margin at 35.7%. Revenue growth of 44.1% 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 69.0x 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 1.63 — expect wider price swings.
SMCI is growing revenue faster at 123.4% — sustainability is the question.
STX generates stronger free cash flow (953M), providing more financial flexibility.
Bottom Line
STX scores higher overall (76/100 vs 67/100), backed by strong 21.6% margins and 44.1% revenue growth. SMCI offers better value entry with a 85.2% 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.
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