Between Western Digital and Seagate Technology, Which Stock Looks Set to Break Out?

-14.42%
Downside
308
Market
263
Trefis
STX: Seagate Technology logo
STX
Seagate Technology

Seagate Technology surged 5.7% 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 33.6 22.7 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 510.6% 584.1% 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

Relevant Articles
  1. Would You Still Hold Seagate Technology Stock If It Fell 30%?
  2. Seagate’s Massive Q1 Beat Shows the Power of AI Demand
  3. Western Digital vs Seagate Technology: Which Is the Stronger Buy Today?
  4. Seagate Technology Stock In Downward Spiral: -14% Loss After 6-Day Losing Streak
  5. Seagate Technology Stock In Downward Spiral: -13% Loss After 5-Day Losing Streak
  6. 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% 233% 488% <===
WDC Return -11% 18% -52% 66% 14% 282% 266%  
S&P 500 Return 16% 27% -19% 24% 23% 17% 113%  
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 12/10/2025 (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.

Portfolios Over Individual Stock Picks

Individual picks can be volatile but staying invested is what matters. A diversified portfolio helps you stay the course, capture upside and reduce downside

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? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.