Reviewing Super Micro Computer (SMCI) and The Competition

Super Micro Computer (NASDAQ:SMCI) is one of 82 public companies in the “Technology Hardware, Storage & Peripherals” industry, but how does it weigh in compared to its peers? We will compare Super Micro Computer to related companies based on the strength of its risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares Super Micro Computer and its peers’ 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	-639.13%	-14.37%	2.86%

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Super Micro Computer	$21.97 billion	$1.05 billion	15.92
Super Micro Computer Competitors	$23.51 billion	$3.24 billion	13.36

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

Institutional and Insider Ownership

84.1% of Super Micro Computer shares are owned by institutional investors. Comparatively, 51.2% 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, 10.5% of shares of all “Technology Hardware, Storage & Peripherals” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Super Micro Computer and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Super Micro Computer	2	12	4	0	2.11
Super Micro Computer Competitors	1047	4265	7596	357	2.55

Super Micro Computer presently has a consensus target price of $39.21, indicating a potential upside of 30.29%. As a group, “Technology Hardware, Storage & Peripherals” companies have a potential upside of 27.97%. Given Super Micro Computer’s higher probable upside, equities research analysts plainly believe Super Micro Computer is more favorable than its peers.

Volatility and Risk

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

Summary

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

About Super Micro Computer

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.