Super Micro Computer (SMCI) and Its Rivals Critical Contrast

Super Micro Computer (NASDAQ:SMCIGet Free Report) is one of 81 publicly-traded companies in the “Technology Hardware, Storage & Peripherals” industry, but how does it contrast to its competitors? We will compare Super Micro Computer to related businesses based on the strength of its earnings, profitability, institutional ownership, dividends, risk, valuation and analyst recommendations.

Institutional & Insider Ownership

84.1% of Super Micro Computer shares are owned by institutional investors. Comparatively, 51.5% of shares of all “Technology Hardware, Storage & Peripherals” companies are owned by institutional investors. 16.1% of Super Micro Computer shares are owned by insiders. Comparatively, 10.8% of shares of all “Technology Hardware, Storage & Peripherals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Super Micro Computer 2 11 4 1 2.22
Super Micro Computer Competitors 1053 4285 7558 358 2.54

Super Micro Computer presently has a consensus price target of $42.13, indicating a potential upside of 21.82%. As a group, “Technology Hardware, Storage & Peripherals” companies have a potential upside of 26.91%. Given Super Micro Computer’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Super Micro Computer has less favorable growth aspects than its competitors.

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 5.71% 27.83% 9.11%
Super Micro Computer Competitors -493.26% -14.53% 4.44%

Volatility & 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 1.55, indicating that their average stock price is 55% more volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Super Micro Computer $39.06 billion $2.23 billion 10.81
Super Micro Computer Competitors $24.36 billion $3.81 billion 6.10

Super Micro Computer has higher revenue, but lower earnings than its competitors. 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.

Summary

Super Micro Computer beats its competitors on 9 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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