Dell Technologies Inc. (DELL) vs Western Digital Corporation (WDC)

Dell Technologies Inc. and Western Digital Corporation are both Computer Hardware companies. Dell Technologies Inc. is the larger, with a market value of $348.7B against $165.5B — 2.1× the size. Western Digital Corporation trades at the lower P/E: 16.9× against 32.4×. Dell Technologies Inc. grew revenue faster over the last twelve months: 49.0% against 35.7%. Western Digital Corporation has the higher net margin (73.0% vs 7.53%) and the lower return on invested capital (33.4% vs 68.6%). Both pay a dividend; Dell Technologies Inc. yields more (1.75% vs 0.03%). Across the 22 metrics below, Western Digital Corporation leads on 12 and Dell Technologies Inc. on 10.

Valuation

Metric DELL WDC Computer Hardware median
P/E 32.42 16.89 20.64
P/S 2.40 12.18 2.95
P/B n/m 17.75 2.78
Price to free cash flow 42.41 44.82 25.64
EV/EBITDA 21.83 32.99 20.51
EV/Sales 2.50 12.33 3.48
Earnings yield 3.08% 5.92% (4.08%)
Free cash flow yield 2.36% 2.23% (2.90%)

Profitability

Metric DELL WDC Computer Hardware median
Gross margin 19.80% 48.85% 37.84%
Operating margin 9.43% 34.47% (0.80%)
Net margin 7.53% 72.95% (14.15%)
Free cash flow margin 5.66% 27.18% 0.00%
Return on equity (542.71%) 132.97% (2.10%)
Return on assets 10.51% 67.65% (0.42%)
Return on invested capital 68.58% 33.38% 0.00%

Growth

Metric DELL WDC Computer Hardware median
Revenue growth (TTM) 49.03% 35.70% 27.21%
EPS growth (last fiscal year) 36.05% 373.29% —
Revenue growth, 5-year CAGR 5.55% (5.26%) 0.81%
Net income growth, 5-year CAGR 12.80% 62.92% 0.00%

Health

Metric DELL WDC Computer Hardware median
Debt to equity (18.21) 0.12 0.00
Current ratio 0.96 1.33 2.76
Net debt to EBITDA 1.07 (0.11) 0.46

Dividend

Metric DELL WDC Computer Hardware median
Dividend yield 1.75% 0.03% 2.47%
Payout ratio 0.54 0.00 0.00

Size

Metric DELL WDC Computer Hardware median
Market cap 348.74b 165.48b 462.08m

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