Is Seagate the Best Value in the Market Today? (STX)

Is Seagate the Best Value in the Market Today?

The following video is part of our "Motley Fool Conversations" series, in which analyst Rex Moore discusses topics across the investing world.

Today, Rex takes a look at Seagate Technology, which carries the lowest price-to-earnings multiple of all the stocks passing his "Best Values" screen.

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Rex Moore has no positions in the stocks mentioned above. The Motley Fool owns shares of Intel and Western Digital. Motley Fool newsletter services recommend Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Report this Comment On July 19, 2012, at 9:54 PM, FoolSolo wrote:

Rexx, I don't think Seagate is nearly as compelling as Western Digital. I prefer WDC for several reasons, not the least of which is a healthier balance sheet.
Take a look at Seagates 5-year EPS growth... negative 7, and 5-year Sales growth... just 3.5%. Compare that to WDC at 12% and 17% respectively. And STX TTM earnings were down over 65%, much more that WDC which were down 48% (all due to Thai flodding). Sure, if you project forward from such dismal numbers STX had better raise their performance.
Compare Price to Book, Price to Cash and Price to Free Cash Flow, WDC is much better in all 3 categories. WDC also has a better debt/equity ratio.
From my analysis, I believe WDC has a much better risk/reward ratio than STX.

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STX	$41.47		+0.88	+2.17%
Seagate Technology		CAPS Rating:

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Western Digital Co…		CAPS Rating:

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Is Seagate the Best Value in the Market Today?

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Report this Comment On July 19, 2012, at 9:54 PM, FoolSolo wrote:

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