Dell Technologies (DVMT) & Super Micro Computer (SMCI) Critical Contrast

Dell Technologies (NYSE: DVMT) and Super Micro Computer (NASDAQ:SMCI) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

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This table compares Dell Technologies and Super Micro Computer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dell Technologies -4.74% 23.17% 3.15%
Super Micro Computer N/A N/A N/A



Analyst Ratings

This is a breakdown of recent recommendations and price targets for Dell Technologies and Super Micro Computer, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dell Technologies 0 1 3 0 2.75
Super Micro Computer 0 6 1 0 2.14

Dell Technologies currently has a consensus target price of $110.00, indicating a potential upside of 45.91%. Super Micro Computer has a consensus target price of $28.83, indicating a potential upside of 57.56%. Given Super Micro Computer’s higher probable upside, analysts plainly believe Super Micro Computer is more favorable than Dell Technologies.

Institutional & Insider Ownership

23.1% of Dell Technologies shares are held by institutional investors. Comparatively, 81.4% of Super Micro Computer shares are held by institutional investors. 45.0% of Dell Technologies shares are held by company insiders. Comparatively, 24.0% of Super Micro Computer shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Dell Technologies has a beta of -0.5, suggesting that its stock price is 150% less volatile than the S&P 500. Comparatively, Super Micro Computer has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500.

Valuation & Earnings

This table compares Dell Technologies and Super Micro Computer’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dell Technologies $78.66 billion 0.74 -$3.73 billion $6.17 12.22
Super Micro Computer $2.53 billion 0.35 $69.32 million $1.34 13.66

Super Micro Computer has lower revenue, but higher earnings than Dell Technologies. Dell Technologies is trading at a lower price-to-earnings ratio than Super Micro Computer, indicating that it is currently the more affordable of the two stocks.

Summary

Dell Technologies beats Super Micro Computer on 8 of the 14 factors compared between the two stocks.

About Dell Technologies

Dell Technologies Inc., formerly Denali Holding Inc., is a provider of information technology solutions. The Company operates through two segments: Client Solutions and Enterprise Solutions Group (ESG). The Client Solutions segment includes sales to commercial and consumer customers of desktops, thin client products and notebooks, as well as services and third-party software and peripherals closely tied to the sale of Client Solutions hardware. Its offerings include hardware, such as desktop personal computers, notebooks and tablets, and peripherals, such as monitors, printers and projectors, as well as third-party software and peripherals. The ESG segment includes servers, networking and storage, as well as services and third-party software and peripherals that are closely tied to the sale of ESG hardware. It designs, develops, manufactures, markets, sells and supports a range of products and services.

About Super Micro Computer

Super Micro Computer, Inc., together with its subsidiaries, develops and provides high performance server solutions based on modular and open architecture. It offers a range of server, storage, blade, workstation, and full rack solutions, as well as networking devices, server management software, and technology support and services. The company also provides a range of application optimized server solutions, including rackmount and blade server systems; and server subsystems and accessories comprising server boards, and chassis and power supplies, as well as other system accessories, including microprocessors, and memory and disc drives. In addition, it provides customer support services and hardware enhanced services. The company offers its products to data center, cloud computing, enterprise IT, big data, high performance computing, and Internet of Things/embedded markets. It sells its server systems, and server subsystems and accessories through direct sales force, as well as through distributors that comprise value added resellers and system integrators, and OEMs. The company has operations primarily in San Jose, California; the Netherlands; Taiwan; China; and Japan. Super Micro Computer, Inc. was founded in 1993 and is headquartered in San Jose, California.

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