Seagate Technology vs Western Digital: Which Stock Could Rally?
Seagate Technology surged 34% during the past Month. 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 | 51.2 | 42.8 | 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 |
| Momentum | |||
| Last 3 Year Return | 1206.6% | 1511.0% | WDC |
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 Technology Stock To $520?
- 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?
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% | 167% | 1292% | <=== | |
| WDC Return | 18% | -52% | 66% | 14% | 288% | 165% | 1005% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 7% | 96% | ||
| Monthly Win Rates [3] | |||||||||
| STX Win Rate | 67% | 33% | 75% | 58% | 83% | 80% | 66% | <=== | |
| WDC Win Rate | 50% | 42% | 58% | 67% | 92% | 80% | 65% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | 64% | ||
| Max Drawdowns [4] | |||||||||
| STX Max Drawdown | -24% | -57% | -23% | -23% | -38% | -21% | -31% | ||
| WDC Max Drawdown | -32% | -55% | -29% | -30% | -43% | -21% | -35% | ||
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | -13% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 5/20/2026 (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.
The Right Way To Invest Is Through Portfolios
Individual stocks are unpredictable. A smart portfolio helps you invest, limits downside shocks, and provides upside exposure.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? HQ Portfolio has posted more than 105% in cumulative return since inception, with less risk versus the benchmark index, as evident in HQ Portfolio performance metrics.