Contrasting NetApp (NASDAQ:NTAP) & GSI Technology (NASDAQ:GSIT)

GSI Technology (NASDAQ:GSIT) and NetApp (NASDAQ:NTAP) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

33.2% of GSI Technology shares are owned by institutional investors. Comparatively, 92.2% of NetApp shares are owned by institutional investors. 25.4% of GSI Technology shares are owned by insiders. Comparatively, 0.3% of NetApp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

GSI Technology has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, NetApp has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for GSI Technology and NetApp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GSI Technology	0	0	0	0	0.00
NetApp	1	9	6	0	2.31

NetApp has a consensus target price of $119.2143, suggesting a potential upside of 8.81%. Given NetApp’s stronger consensus rating and higher probable upside, analysts plainly believe NetApp is more favorable than GSI Technology.

Profitability

This table compares GSI Technology and NetApp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GSI Technology	-62.96%	-43.27%	-30.07%
NetApp	18.05%	126.96%	12.84%

Valuation and Earnings

This table compares GSI Technology and NetApp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GSI Technology	$20.52 million	4.45	-$10.64 million	($0.54)	-5.81
NetApp	$6.57 billion	3.34	$1.19 billion	$5.68	19.29

NetApp has higher revenue and earnings than GSI Technology. GSI Technology is trading at a lower price-to-earnings ratio than NetApp, indicating that it is currently the more affordable of the two stocks.

Summary

NetApp beats GSI Technology on 12 of the 14 factors compared between the two stocks.

About GSI Technology

GSI Technology, Inc. designs, develops, and markets semiconductor memory solutions to networking, industrial, medical, aerospace, and military customers in the United States, China, Singapore, Germany, the Netherlands, and internationally. It offers associative processing unit products, which are focuses on applications using similarity search in visual search queries for ecommerce, computer vision, drug discovery, cyber security, and service markets. The company also provides static random access memory (SRAM) products, such as SyncBurst for microprocessor cache and other applications; No Bus Turnaround SRAMs to address the needs of networking and telecom applications; SigmaQuad and SigmaDDR products for density and random transaction rate requirements of networking and telecom applications; Low Latency DRAMs, a solution for advanced data networking applications; Asynchronous, a main memory for small cache-less embedded processors for industrial electronics, measurement systems and cost-sensitive networking equipment, and other applications; and specialty SRAMs. In addition, it offers radiation-hardened and radiation-tolerant SRAMs for military/defense and aerospace applications, such as networking satellites and missiles. The company's products are used as components in its original equipment manufacturer customers' products, including routers, switches, and other networking and telecommunications products; military and aerospace applications, such as radar and guidance systems and satellites; test and measurement applications consisting of high-speed testers; automotive applications comprising smart cruise control; medical applications, including ultrasound and CAT scan equipment; and audio/video processing. It markets its products through a network of independent sales representatives and distributors. GSI Technology, Inc. was incorporated in 1995 and is headquartered in Sunnyvale, California.

About NetApp

NetApp, Inc. provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The company offers intelligent data management software, such as NetApp ONTAP, NetApp Snapshot, NetApp SnapCenter Backup Management, NetApp SnapMirror Data Replication, NetApp SnapLock Data Compliance, and storage infrastructure solutions, including NetApp All-Flash FAS series, NetApp Fabric Attached Storage, NetApp E/EF series, and NetApp StorageGRID. In addition, it provides cloud storage and data services comprising NetApp Cloud Volumes ONTAP, Azure NetApp Files, Amazon FSx for NetApp ONTAP, NetApp Cloud Volumes Service for Google Cloud, and cloud operations services, such as NetApp Cloud Insights, Spot by NetApp, and Instaclustr. Further, the company offers application-aware data management service under the NetApp Astra name; and professional and support services, such as strategic consulting, professional, managed, and support services. Additionally, it provides assessment, design, implementation, and migration services. The company serves the energy, financial service, government, technology, internet, life science, healthcare service, manufacturing, media, entertainment, animation, video postproduction, and markets through a direct sales force and an ecosystem of partners. NetApp, Inc. was incorporated in 1992 and is headquartered in San Jose, California.