Big Decline for DELL, but Do WDC’s Margins and Growth Give It the Edge?
Western Digital (WDC) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Dell Technologies (DELL), suggesting you may be better off investing in WDC
- WDC’s quarterly revenue growth was 30.0%, vs. DELL’s 5.1%.
- In addition, its Last 12 Months revenue growth came in at 39.2%, ahead of DELL’s 7.7%.
- WDC’s LTM margin is higher: 21.1% vs. DELL’s 6.7%.
DELL operates in infrastructure, client devices, and VMware segments, offering desktops, workstations, software, and multi-cloud, networking, security, and digital workspace solutions. 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
| DELL | WDC | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 13.0 | 10.0 | WDC |
| Revenue Growth | |||
| Last Quarter | 5.1% | 30.0% | WDC |
| Last 12 Months | 7.7% | 39.2% | WDC |
| Last 3 Year Average | -2.4% | 8.3% | WDC |
| Operating Margins | |||
| Last 12 Months | 6.7% | 21.1% | WDC |
| Last 3 Year Average | 6.0% | 3.7% | DELL |
| Momentum | |||
| Last 3 Year Return | 222.3% | 140.5% | DELL |
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: DELL Revenue Comparison | WDC Revenue Comparison
See more margin details: DELL 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 Dell Technologies still has cards to play (see Buy or Sell DELL Stock).
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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 | |||||||||
| DELL Return | 43% | 52% | -27% | 96% | 53% | 18% | 449% | <=== | |
| WDC Return | -11% | 18% | -52% | 66% | 14% | 84% | 66% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 11% | 100% | ||
| Monthly Win Rates [3] | |||||||||
| DELL Win Rate | 67% | 75% | 33% | 75% | 75% | 57% | 64% | <=== | |
| 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] | |||||||||
| DELL Max Drawdown | -44% | -3% | -39% | -8% | -2% | -38% | -22% | ||
| 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 8/29/2025 (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 DELL Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.