Corsair Gaming (NASDAQ:CRSR) and Western Digital (NASDAQ:WDC) Head-To-Head Comparison

Corsair Gaming (NASDAQ:CRSR) and Western Digital (NASDAQ:WDC) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Profitability

This table compares Corsair Gaming and Western Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corsair Gaming	2.36%	13.10%	6.88%
Western Digital	72.95%	48.15%	25.79%

Risk & Volatility

Corsair Gaming has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500. Comparatively, Western Digital has a beta of 2.11, meaning that its share price is 111% more volatile than the S&P 500.

Institutional and Insider Ownership

25.7% of Corsair Gaming shares are owned by institutional investors. Comparatively, 92.5% of Western Digital shares are owned by institutional investors. 54.5% of Corsair Gaming shares are owned by company insiders. Comparatively, 0.2% of Western Digital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Corsair Gaming and Western Digital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corsair Gaming	$1.47 billion	0.97	-$12.47 million	$0.30	43.93
Western Digital	$12.92 billion	10.55	$9.42 billion	$24.21	15.04

Western Digital has higher revenue and earnings than Corsair Gaming. Western Digital is trading at a lower price-to-earnings ratio than Corsair Gaming, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Corsair Gaming and Western Digital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corsair Gaming	1	4	4	0	2.33
Western Digital	0	7	20	1	2.79

Corsair Gaming presently has a consensus price target of $12.00, suggesting a potential downside of 8.95%. Western Digital has a consensus price target of $618.63, suggesting a potential upside of 69.91%. Given Western Digital’s stronger consensus rating and higher possible upside, analysts plainly believe Western Digital is more favorable than Corsair Gaming.

Summary

Western Digital beats Corsair Gaming on 13 of the 15 factors compared between the two stocks.

About Corsair Gaming

Corsair Gaming, Inc., together with its subsidiaries, designs, develops, markets, and sells gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East, and the Asia Pacific. It offers gamer and creator peripherals, including gaming keyboards, mice, headsets, controllers, and streaming products, such as capture cards, stream decks, microphones and audio interfaces, facecam streaming cameras, studio accessories, gaming furniture, and other related products. The company also provides gaming components and systems comprising power supply units, cooling solutions, computer cases, and DRAM modules, as well as prebuilt and custom-built gaming PCs and laptops, gaming monitors, and others; and PC gaming software comprising iCUE for gamers and Elgato streaming suite for content creators, as well as digital services. It sells its products through e-retail, retail, and direct-to-consumer channels and distributors. Corsair Gaming, Inc. was formerly known as Corsair Components (Cayman) Ltd and changed its name to Corsair Gaming, Inc in August 2017. The company was incorporated in 1994 and is headquartered in Milpitas, California.

About Western Digital

Western Digital Corporation develops, manufactures, and sells data storage devices and solutions in the United States, China, Hong Kong, Europe, the Middle East, Africa, rest of Asia, and internationally. It offers client devices, including hard disk drives (HDDs) and solid state drives (SSDs) for desktop and notebook personal computers (PCs), gaming consoles, and set top boxes; and flash-based embedded storage products for mobile phones, tablets, notebook PCs, and other portable and wearable devices, as well as automotive, Internet of Things, industrial, and connected home applications. The company also provides enterprise HDDs; enterprise SSDs consisting of flash-based SSDs and software solutions for use in enterprise servers, online transactions, data analysis, and other enterprise applications; and data storage platforms. In addition, it offers external HDD storage products in mobile and desktop form; client portable SSDs; removable cards that are used in consumer devices comprising mobile phones, tablets, imaging systems, and cameras and smart video systems; universal serial bus flash drives for use in the computing and consumer markets; and wireless drive products used in-field backup of created content, as well as wireless streaming of high-definition movies, photos, music, and documents to tablets, smartphones, and PCs. The company sells its products under the Western Digital, SanDisk, and WD brands to original equipment manufacturers, distributors, dealers, resellers, and retailers. Western Digital Corporation was founded in 1970 and is headquartered in San Jose, California.