Western Digital vs Seagate Technology: Which Is the Stronger Buy Today?
Seagate Technology surged 24% during the past Week. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Western Digital gives you more. Western Digital (WDC) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Seagate Technology (STX) stock, suggesting you may be better off investing in WDC
- WDC’s quarterly revenue growth was 45.5%, vs. STX’s 44.1%.
- In addition, its Last 12 Months revenue growth came in at 32.0%, ahead of STX’s 28.9%.
- WDC’s LTM margin is higher: 31.2% vs. STX’s 29.5%.
These differences become even clearer when you look at the financials side by side. The table highlights how STX’s fundamentals stack up against those of WDC on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| STX | WDC | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 50.3 | 41.2 | WDC |
| Revenue Growth | |||
| Last Quarter | 44.1% | 45.5% | WDC |
| Last 12 Months | 28.9% | 32.0% | WDC |
| Last 3 Year Average | 13.2% | 25.5% | WDC |
| Operating Margins | |||
| Last 12 Months | 29.5% | 31.2% | WDC |
| Last 3 Year Average | 16.9% | 12.7% | 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.
- Seagate Is Sold Out Through 2027 As AI Reshapes Hard Drive Demand
- Stress Testing STX: Historical Drawdowns and Macro Risks
- Stress Testing STX: Historical Drawdowns and Macro Risks
- How Low Can STX Really Go In A Market Crash?
- How Low Can STX Really Go In A Market Crash?
- How Seagate Technology Stock Gained 310%
See detailed fundamentals on Buy or Sell WDC Stock and Buy or Sell STX Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| STX Return | 88% | -51% | 69% | 4% | 225% | 164% | 1280% | <=== | |
| WDC Return | 18% | -52% | 66% | 14% | 288% | 151% | 946% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 6% | 92% | ||
| Monthly Win Rates [3] | |||||||||
| STX Win Rate | 67% | 33% | 75% | 58% | 83% | 80% | 66% | <=== | |
| WDC Win Rate | 50% | 42% | 58% | 67% | 92% | 60% | 61% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | 64% | ||
| Max Drawdowns [4] | |||||||||
| STX Max Drawdown | -6% | -56% | -1% | -6% | -22% | 0% | -15% | ||
| WDC Max Drawdown | -11% | -54% | -0% | -6% | -32% | 0% | -17% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | -9% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 5/4/2026 (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.
Still not sure about STX or WDC? Consider portfolio approach.
Smart Investing Begins With Portfolios
Stocks soar and sink – the key is staying invested. A balanced portfolio helps you ride market volatility, boosts gains, and reduces single stock risk.
Why settle for average market returns? The Trefis High Quality (HQ) Portfolio invests in a diverse group of 30 stocks that have collectively delivered stronger upside with reduced volatility compared to the broader indices. Discover the methodology behind these smoother, higher returns by checking the HQ Portfolio performance data.