STX’s 10% Single Week Rise Brings Valuations Into Focus – Is WDC a Better Deal?
Western Digital (WDC) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Seagate Technology (STX), suggesting you may be better off investing in WDC
- WDC’s quarterly revenue growth was 30.0%, vs. STX’s 29.5%.
- In addition, its Last 12 Months revenue growth came in at 39.2%, ahead of STX’s 38.9%.
- WDC’s LTM margin is higher: 21.1% vs. STX’s 21.1%.
STX provides global data storage technologies and solutions, including hard disk and solid-state drives with various interfaces like SATA, SCSI, and NVMe. WDC develops and sells data storage devices, including HDDs, SSDs, and flash-based embedded storage for computers, mobile phones, tablets, and wearable devices.
Valuation & Performance Overview
| STX | WDC | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 19.8 | 10.7 | WDC |
| Revenue Growth | |||
| Last Quarter | 29.5% | 30.0% | WDC |
| Last 12 Months | 38.9% | 39.2% | WDC |
| Last 3 Year Average | -3.0% | 8.3% | WDC |
| Operating Margins | |||
| Last 12 Months | 21.1% | 21.1% | WDC |
| Last 3 Year Average | 9.4% | 3.7% | STX |
| Momentum | |||
| Last 3 Year Return | 213.3% | 191.4% | STX |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: STX Revenue Comparison | WDC Revenue Comparison
See more margin details: STX Operating Income Comparison | WDC Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell WDC Stock to see if Western Digital’s edge holds up under the hood or if Seagate Technology still has cards to play (see Buy or Sell STX Stock).
- Would You Still Hold Seagate Technology Stock If It Fell 30%?
- Seagate’s Massive Q1 Beat Shows the Power of AI Demand
- Western Digital vs Seagate Technology: Which Is the Stronger Buy Today?
- Seagate Technology Stock In Downward Spiral: -14% Loss After 6-Day Losing Streak
- Seagate Technology Stock In Downward Spiral: -13% Loss After 5-Day Losing Streak
- Seagate Technology Stock Dropped 13% In A Week. Have You Fully Evaluated The Risk?
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| STX Return | 10% | 88% | -51% | 69% | 4% | 100% | 247% | <=== | |
| WDC Return | -11% | 18% | -52% | 66% | 14% | 84% | 73% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 11% | 100% | ||
| Monthly Win Rates [3] | |||||||||
| STX Win Rate | 58% | 67% | 33% | 75% | 58% | 86% | 63% | <=== | |
| WDC Win Rate | 42% | 50% | 42% | 58% | 67% | 86% | 57% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 57% | 62% | ||
| Max Drawdowns [4] | |||||||||
| STX Max Drawdown | -32% | -6% | -56% | -1% | -6% | -22% | -20% | ||
| WDC Max Drawdown | -54% | -11% | -54% | -0% | -6% | -32% | -26% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 9/4/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read WDC Dip Buyer Analyses and STX Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.