WDC - Better Buy: Seagate Technology vs. Western Digital Corporation
Seagate Technology (NASDAQ: STX) and Western Digital (NASDAQ: WDC) are the world's two largest hard drive makers. Both companies struggled with declining sales and contracting margins over the past year due to sluggish PC sales and soft demand from enterprise customers.
However, signs of a cyclical turnaround lifted shares of Seagate and WD 40% and 60%, respectively, over the past 12 months. Does either stock have more room to run in 2020? Let's dig deeper into their core businesses to decide.
Seagate and WD both sell platter-based HDDs (hard disk drives). Seagate controlled 40% of the HDD market in the third quarter of 2019, according to Coughlin Associates, while WD held a 36% share. Toshiba (OTC: TOSBF) held the remaining 24%.