Analyzing Western Digital (NASDAQ:WDC) and Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares (NASDAQ:XNDU)
by Michael Walen · The Markets DailyWestern Digital (NASDAQ:WDC – Get Free Report) and Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares (NASDAQ:XNDU – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.
Insider and Institutional Ownership
92.5% of Western Digital shares are owned by institutional investors. 0.2% of Western Digital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility & Risk
Western Digital has a beta of 2.13, meaning that its share price is 113% more volatile than the S&P 500. Comparatively, Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares has a beta of 14.82, meaning that its share price is 1,382% more volatile than the S&P 500.
Earnings and Valuation
This table compares Western Digital and Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Western Digital | $12.92 billion | 10.98 | $9.42 billion | $24.21 | 17.00 |
| Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares | $5.96 million | 390.24 | -$125.37 million | ($0.42) | -18.55 |
Western Digital has higher revenue and earnings than Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares. Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares is trading at a lower price-to-earnings ratio than Western Digital, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Western Digital and Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Western Digital | 0 | 6 | 17 | 2 | 2.84 |
| Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares | 1 | 1 | 2 | 1 | 2.60 |
Western Digital currently has a consensus price target of $534.56, suggesting a potential upside of 29.92%. Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares has a consensus price target of $33.00, suggesting a potential upside of 323.62%. Given Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares’ higher possible upside, analysts plainly believe Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares is more favorable than Western Digital.
Profitability
This table compares Western Digital and Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Western Digital | 72.95% | 48.15% | 25.79% |
| Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares | N/A | N/A | N/A |
Summary
Western Digital beats Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares on 12 of the 15 factors compared between the two stocks.
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.
About Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares
Crane Harbor Acquisition Corp. is a blank check company. It formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. Crane Harbor Acquisition Corp. is based in PHILADELPHIA, PA.