Super Micro Computer (SMCI) vs. Its Rivals Critical Analysis

Super Micro Computer (NASDAQ:SMCIGet Free Report) is one of 82 publicly-traded companies in the “Technology Hardware, Storage & Peripherals” industry, but how does it compare to its competitors? We will compare Super Micro Computer to similar companies based on the strength of its institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Analyst Recommendations

This is a summary of current ratings for Super Micro Computer and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Super Micro Computer 2 12 4 0 2.11
Super Micro Computer Competitors 1044 4260 7580 357 2.55

Super Micro Computer presently has a consensus target price of $39.21, suggesting a potential upside of 23.74%. As a group, “Technology Hardware, Storage & Peripherals” companies have a potential upside of 16.66%. Given Super Micro Computer’s higher probable upside, analysts plainly believe Super Micro Computer is more favorable than its competitors.

Insider & Institutional Ownership

84.1% of Super Micro Computer shares are owned by institutional investors. Comparatively, 51.3% of shares of all “Technology Hardware, Storage & Peripherals” companies are owned by institutional investors. 16.1% of Super Micro Computer shares are owned by company insiders. Comparatively, 10.5% of shares of all “Technology Hardware, Storage & Peripherals” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Super Micro Computer and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Super Micro Computer 3.70% 17.49% 6.00%
Super Micro Computer Competitors -617.46% -15.62% 1.28%

Earnings & Valuation

This table compares Super Micro Computer and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Super Micro Computer $21.97 billion $1.05 billion 16.77
Super Micro Computer Competitors $23.20 billion $3.24 billion 12.53

Super Micro Computer’s competitors have higher revenue and earnings than Super Micro Computer. Super Micro Computer is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Super Micro Computer has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500. Comparatively, Super Micro Computer’s competitors have a beta of 1.56, indicating that their average stock price is 56% more volatile than the S&P 500.

Summary

Super Micro Computer beats its competitors on 8 of the 13 factors compared.

Super Micro Computer Company Profile

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Super Micro Computer, Inc., together with its subsidiaries, develops and manufactures high performance server and storage solutions based on modular and open architecture in the United States, Europe, Asia, and internationally. Its solutions range from complete server, storage systems, modular blade servers, blades, workstations, full racks, networking devices, server sub-systems, server management software, and security software. The company provides application-optimized server solutions, rackmount and blade servers, storage, and subsystems and accessories; and server software management solutions, such as Server Management Suite, including Supermicro Server Manager, Supermicro Power Management software, Supermicro Update Manager, SuperCloud Composer, and SuperDoctor 5. In addition, it offers server subsystems and accessories comprising server boards, chassis, power supplies, and other accessories. Further, the company provides server and storage system integration, configuration, and software upgrade and update services; and technical documentation services, as well as identifies service requirements, creates and executes project plans, and conducts verification testing and technical documentation, and training services. Additionally, it offers help desk and on-site product support services for its server and storage systems; and customer support services, including ongoing maintenance and technical support for its products. The company provides its products to enterprise data centers, cloud computing, artificial intelligence, and 5G and edge computing markets. It sells its products through direct and indirect sales force, distributors, value-added resellers, system integrators, and original equipment manufacturers. The company was incorporated in 1993 and is headquartered in San Jose, California.

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