Can Western Digital Outrun Seagate Technology in the Next Rally?
Seagate Technology surged 6.7% during the past Day. 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 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%.
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 | 28.4 | 18.8 | 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 | 411.2% | 447.2% | 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
- 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?
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
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| STX Return | 10% | 88% | -51% | 69% | 4% | 198% | 427% | <=== | |
| WDC Return | -11% | 18% | -52% | 66% | 14% | 240% | 226% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 14% | 108% | ||
| Monthly Win Rates [3] | |||||||||
| STX Win Rate | 58% | 67% | 33% | 75% | 58% | 90% | 64% | ||
| WDC Win Rate | 42% | 50% | 42% | 58% | 67% | 90% | 58% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | 64% | <=== | |
| 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 11/24/2025 (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.
Still not sure about STX or WDC? Consider portfolio approach.
Multi Asset Portfolios Offer More Upside With Less Risk
Single markets are unpredictable but different assets react differently. A multi asset portfolio cuts downside shocks while keeping upside on the table.
The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which 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