Analyzing Silicon Graphics International Corp (SGI) and Lexmark International (NYSE:LXK)

Silicon Graphics International Corp (NASDAQ: SGI) and Lexmark International (NYSE:LXK) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitabiliy.

Valuation and Earnings

This table compares Silicon Graphics International Corp and Lexmark International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Silicon Graphics International Corp N/A N/A N/A ($0.32) -24.22
Lexmark International N/A N/A N/A ($1.08) -37.49

Lexmark International is trading at a lower price-to-earnings ratio than Silicon Graphics International Corp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Silicon Graphics International Corp and Lexmark International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Silicon Graphics International Corp 0 1 1 0 2.50
Lexmark International 0 0 0 0 N/A

Silicon Graphics International Corp presently has a consensus target price of $7.75, suggesting a potential upside of 0.00%. Given Silicon Graphics International Corp’s higher probable upside, analysts plainly believe Silicon Graphics International Corp is more favorable than Lexmark International.

Dividends

Lexmark International pays an annual dividend of $1.44 per share and has a dividend yield of 3.6%. Silicon Graphics International Corp does not pay a dividend. Lexmark International pays out -133.3% of its earnings in the form of a dividend. Silicon Graphics International Corp has raised its dividend for 6 consecutive years.

Profitability

This table compares Silicon Graphics International Corp and Lexmark International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Silicon Graphics International Corp 0.11% 0.98% 0.15%
Lexmark International 2.17% 7.30% 2.01%

Volatility & Risk

Silicon Graphics International Corp has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500. Comparatively, Lexmark International has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.

Insider and Institutional Ownership

80.9% of Silicon Graphics International Corp shares are held by institutional investors. Comparatively, 81.8% of Lexmark International shares are held by institutional investors. 3.9% of Silicon Graphics International Corp shares are held by insiders. Comparatively, 2.8% of Lexmark International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Silicon Graphics International Corp Company Profile

Silicon Graphics International Corp. (SGI) is engaged in providing solutions for compute, data analytics and data management. The Company develops, markets and sells a line of mid-range and high-end scale-out and scale-up servers, enterprise-class storage, differentiating software and designed-to-order solutions for data center deployments. The Company operates through the segments, including Product and Service. The Company’s Product segment consists of compute and storage solutions, which include products from both HPC and HPDA segments. The Company’s Product segment includes scale-out computing, scale-up computing, software and cloud/Web solutions. Its storage solutions include both hardware and software offerings for data storage and management. The Service segment consists of customer service support and professional services. SGI systems enable customers to access, analyze, transform, manage and visualize information in real and near real-time.

Lexmark International Company Profile

Lexmark International, Inc. is a United States-based company, which is a provider of printing and imaging products, software, solutions and services. The Company’s software scans everything from spreadsheets to medical images, and provides services to banking, healthcare, insurance and retail companies. It creates enterprise software, hardware and services that remove inefficiencies of information silos and disconnected processes. It offers various services, such as managed print services, hardware warranty and repair service, professional services and enterprise software services. It offers solutions, such as financial process automation, business process management, Web information integration and consumer loan origination. Its hardware category includes equipment collection program, and Smart multifunction product (MFP) includes device management and mobile print solutions. It produces and distributes millions of supplies each year, including ink, toner and paper.

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