Seek Returns logo

ALAB vs. STX: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ALAB and STX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

STX’s market capitalization of 31.71 billion USD is significantly greater than ALAB’s 14.97 billion USD, highlighting its more substantial market valuation.

With betas of 1.40 for ALAB and 1.43 for STX, both stocks show similar sensitivity to overall market movements.

SymbolALABSTX
Company NameAstera Labs, Inc. Common StockSeagate Technology Holdings plc
CountryUSIE
SectorTechnologyTechnology
IndustrySemiconductorsComputer Hardware
CEOJitendra MohanWilliam David Mosley
Price90.8 USD149.44 USD
Market Cap14.97 billion USD31.71 billion USD
Beta1.401.43
ExchangeNASDAQNASDAQ
IPO DateMarch 20, 2024December 11, 2002
ADRNoNo

Historical Performance

This chart compares the performance of ALAB and STX by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ALAB vs. STX: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ALAB

4.43%

Semiconductors Industry

Max
41.84%
Q3
15.81%
Median
6.31%
Q1
-5.54%
Min
-30.12%

ALAB’s Return on Equity of 4.43% is on par with the norm for the Semiconductors industry, indicating its profitability relative to shareholder equity is typical for the sector.

STX

-127.18%

Computer Hardware Industry

Max
123.03%
Q3
15.78%
Median
-13.44%
Q1
-119.16%
Min
-227.95%

STX has a negative Return on Equity of -127.18%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

ALAB vs. STX: A comparison of their ROE against their respective Semiconductors and Computer Hardware industry benchmarks.

Return on Invested Capital

ALAB

-4.25%

Semiconductors Industry

Max
30.91%
Q3
11.34%
Median
4.08%
Q1
-2.17%
Min
-19.59%

ALAB has a negative Return on Invested Capital of -4.25%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.

STX

30.37%

Computer Hardware Industry

Max
30.37%
Q3
20.44%
Median
7.03%
Q1
-12.47%
Min
-31.70%

In the upper quartile for the Computer Hardware industry, STX’s Return on Invested Capital of 30.37% signifies a highly effective use of its capital to generate profits when compared to its peers.

ALAB vs. STX: A comparison of their ROIC against their respective Semiconductors and Computer Hardware industry benchmarks.

Net Profit Margin

ALAB

8.44%

Semiconductors Industry

Max
51.69%
Q3
19.67%
Median
8.56%
Q1
-5.44%
Min
-38.60%

ALAB’s Net Profit Margin of 8.44% is aligned with the median group of its peers in the Semiconductors industry. This indicates its ability to convert revenue into profit is typical for the sector.

STX

17.49%

Computer Hardware Industry

Max
40.72%
Q3
10.87%
Median
4.33%
Q1
-378.64%
Min
-753.20%

A Net Profit Margin of 17.49% places STX in the upper quartile for the Computer Hardware industry, signifying strong profitability and more effective cost management than most of its peers.

ALAB vs. STX: A comparison of their Net Profit Margin against their respective Semiconductors and Computer Hardware industry benchmarks.

Operating Profit Margin

ALAB

-4.45%

Semiconductors Industry

Max
58.03%
Q3
22.12%
Median
8.40%
Q1
-3.73%
Min
-36.14%

ALAB has a negative Operating Profit Margin of -4.45%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

STX

19.12%

Computer Hardware Industry

Max
42.27%
Q3
13.53%
Median
4.56%
Q1
-295.01%
Min
-592.84%

An Operating Profit Margin of 19.12% places STX in the upper quartile for the Computer Hardware industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ALAB vs. STX: A comparison of their Operating Margin against their respective Semiconductors and Computer Hardware industry benchmarks.

Profitability at a Glance

SymbolALABSTX
Return on Equity (TTM)4.43%-127.18%
Return on Assets (TTM)3.69%19.75%
Return on Invested Capital (TTM)-4.25%30.37%
Net Profit Margin (TTM)8.44%17.49%
Operating Profit Margin (TTM)-4.45%19.12%
Gross Profit Margin (TTM)75.76%33.79%

Financial Strength

Current Ratio

ALAB

13.92

Semiconductors Industry

Max
9.10
Q3
5.23
Median
3.09
Q1
2.49
Min
1.02

ALAB’s Current Ratio of 13.92 is exceptionally high, placing it well outside the typical range for the Semiconductors industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

STX

1.36

Computer Hardware Industry

Max
20.73
Q3
11.54
Median
2.69
Q1
1.40
Min
0.73

STX’s Current Ratio of 1.36 falls into the lower quartile for the Computer Hardware industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ALAB vs. STX: A comparison of their Current Ratio against their respective Semiconductors and Computer Hardware industry benchmarks.

Debt-to-Equity Ratio

ALAB

--

Semiconductors Industry

Max
0.97
Q3
0.46
Median
0.21
Q1
0.05
Min
0.00

Debt-to-Equity Ratio data for ALAB is currently unavailable.

STX

-6.21

Computer Hardware Industry

Max
1.36
Q3
0.67
Median
0.04
Q1
0.03
Min
0.00

STX has a Debt-to-Equity Ratio of -6.21, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.

ALAB vs. STX: A comparison of their D/E Ratio against their respective Semiconductors and Computer Hardware industry benchmarks.

Interest Coverage Ratio

ALAB

--

Semiconductors Industry

Max
36.25
Q3
29.12
Median
7.01
Q1
-1.22
Min
-18.18

Interest Coverage Ratio data for ALAB is currently unavailable.

STX

4.98

Computer Hardware Industry

Max
32.50
Q3
21.85
Median
4.98
Q1
-7.71
Min
-34.24

STX’s Interest Coverage Ratio of 4.98 is positioned comfortably within the norm for the Computer Hardware industry, indicating a standard and healthy capacity to cover its interest payments.

ALAB vs. STX: A comparison of their Interest Coverage against their respective Semiconductors and Computer Hardware industry benchmarks.

Financial Strength at a Glance

SymbolALABSTX
Current Ratio (TTM)13.921.36
Quick Ratio (TTM)13.260.75
Debt-to-Equity Ratio (TTM)---6.21
Debt-to-Asset Ratio (TTM)--0.68
Net Debt-to-EBITDA Ratio (TTM)4.762.05
Interest Coverage Ratio (TTM)--4.98

Growth

The following charts compare key year-over-year (YoY) growth metrics for ALAB and STX. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ALAB vs. STX: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ALAB vs. STX: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ALAB vs. STX: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ALAB

0.00%

Semiconductors Industry

Max
6.48%
Q3
0.93%
Median
0.00%
Q1
0.00%
Min
0.00%

ALAB currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

STX

1.91%

Computer Hardware Industry

Max
9.24%
Q3
1.58%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.91%, STX offers a more attractive income stream than most of its peers in the Computer Hardware industry, signaling a strong commitment to shareholder returns.

ALAB vs. STX: A comparison of their Dividend Yield against their respective Semiconductors and Computer Hardware industry benchmarks.

Dividend Payout Ratio

ALAB

0.00%

Semiconductors Industry

Max
204.29%
Q3
31.85%
Median
0.00%
Q1
0.00%
Min
0.00%

ALAB has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

STX

39.76%

Computer Hardware Industry

Max
193.79%
Q3
30.72%
Median
0.00%
Q1
0.00%
Min
0.00%

STX’s Dividend Payout Ratio of 39.76% is in the upper quartile for the Computer Hardware industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

ALAB vs. STX: A comparison of their Payout Ratio against their respective Semiconductors and Computer Hardware industry benchmarks.

Dividend at a Glance

SymbolALABSTX
Dividend Yield (TTM)0.00%1.91%
Dividend Payout Ratio (TTM)0.00%39.76%

Valuation

Price-to-Earnings Ratio

ALAB

357.98

Semiconductors Industry

Max
86.15
Q3
47.38
Median
27.87
Q1
18.89
Min
4.73

At 357.98, ALAB’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

STX

21.21

Computer Hardware Industry

Max
24.60
Q3
24.01
Median
20.31
Q1
18.24
Min
13.38

STX’s P/E Ratio of 21.21 is within the middle range for the Computer Hardware industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ALAB vs. STX: A comparison of their P/E Ratio against their respective Semiconductors and Computer Hardware industry benchmarks.

Forward P/E to Growth Ratio

ALAB

10.80

Semiconductors Industry

Max
4.73
Q3
2.80
Median
1.11
Q1
0.68
Min
0.01

The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.

STX

0.71

Computer Hardware Industry

Max
9.77
Q3
5.18
Median
1.77
Q1
1.17
Min
0.02

The Forward PEG Ratio is often not a primary valuation metric in the Computer Hardware industry.

ALAB vs. STX: A comparison of their Forward PEG Ratio against their respective Semiconductors and Computer Hardware industry benchmarks.

Price-to-Sales Ratio

ALAB

30.53

Semiconductors Industry

Max
21.96
Q3
10.21
Median
4.45
Q1
2.32
Min
0.48

With a P/S Ratio of 30.53, ALAB trades at a valuation that eclipses even the highest in the Semiconductors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

STX

3.71

Computer Hardware Industry

Max
57.61
Q3
47.40
Median
3.37
Q1
1.56
Min
0.43

STX’s P/S Ratio of 3.71 aligns with the market consensus for the Computer Hardware industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ALAB vs. STX: A comparison of their P/S Ratio against their respective Semiconductors and Computer Hardware industry benchmarks.

Price-to-Book Ratio

ALAB

14.23

Semiconductors Industry

Max
13.12
Q3
6.49
Median
3.31
Q1
1.74
Min
0.23

At 14.23, ALAB’s P/B Ratio is at an extreme premium to the Semiconductors industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

STX

-38.22

Computer Hardware Industry

Max
21.21
Q3
14.71
Median
9.28
Q1
3.74
Min
0.43

STX has a negative P/B Ratio of -38.22, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.

ALAB vs. STX: A comparison of their P/B Ratio against their respective Semiconductors and Computer Hardware industry benchmarks.

Valuation at a Glance

SymbolALABSTX
Price-to-Earnings Ratio (P/E, TTM)357.9821.21
Forward PEG Ratio (TTM)10.800.71
Price-to-Sales Ratio (P/S, TTM)30.533.71
Price-to-Book Ratio (P/B, TTM)14.23-38.22
Price-to-Free Cash Flow Ratio (P/FCF, TTM)138.4441.03
EV-to-EBITDA (TTM)-820.3217.02
EV-to-Sales (TTM)30.354.22