Pure Storage (PSTG) vs. SanDisk (SNDK) Head to Head Review

Pure Storage (NYSE: PSTG) and SanDisk (NASDAQ:SNDK) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitabiliy and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pure Storage	-31.62%	-44.04%	-24.43%
SanDisk	5.74%	5.68%	3.35%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Pure Storage	$770.66 million	3.31	-$160.42 million	($1.22)	-10.02
SanDisk	N/A	N/A	N/A	N/A	N/A

SanDisk has higher revenue, but lower earnings than Pure Storage.

Institutional and Insider Ownership

34.4% of Pure Storage shares are held by institutional investors. 46.6% of Pure Storage shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Pure Storage and SanDisk, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pure Storage	0	7	15	0	2.68
SanDisk	0	0	0	0	N/A

Pure Storage currently has a consensus target price of $15.68, indicating a potential upside of 28.17%. Given Pure Storage’s higher probable upside, equities analysts clearly believe Pure Storage is more favorable than SanDisk.

Summary

Pure Storage beats SanDisk on 5 of the 8 factors compared between the two stocks.

About Pure Storage

Pure Storage, Inc. provides a data platform. The Company is focused on delivering software-defined all-flash solutions that are fast and cloud-capable for customers, enabling customers to put data to work for their businesses. Its data platform replaces storage systems designed for mechanical disk with all-flash systems optimized end-to-end for solid-state memory. Its business model replaces the forklift upgrade cycle with an Evergreen Storage model. Its primary offerings include its FlashArray and FlashBlade products, inclusive of its Purity Operating Environment (Purity OE) software, its Pure1 cloud-based software, and FlashStack, its joint converged infrastructure solution with Cisco. Its customers include large and mid-size organizations across a diverse set of industry verticals, including cloud-based software and service providers, consumer Web, education, energy, financial services, governments, healthcare, manufacturing, media, retail and telecommunications.

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.