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WDC vs. NTAP: Which Stock Is the Better Value Option?

By Zacks Equity Research | August 04, 2025, 11:40 AM

Investors interested in Computer- Storage Devices stocks are likely familiar with Western Digital (WDC) and NetApp (NTAP). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, Western Digital is sporting a Zacks Rank of #1 (Strong Buy), while NetApp has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that WDC has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

WDC currently has a forward P/E ratio of 12.37, while NTAP has a forward P/E of 13.08. We also note that WDC has a PEG ratio of 0.90. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NTAP currently has a PEG ratio of 1.87.

Another notable valuation metric for WDC is its P/B ratio of 5.03. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NTAP has a P/B of 19.48.

These metrics, and several others, help WDC earn a Value grade of B, while NTAP has been given a Value grade of C.

WDC stands above NTAP thanks to its solid earnings outlook, and based on these valuation figures, we also feel that WDC is the superior value option right now.

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Western Digital Corporation (WDC): Free Stock Analysis Report
 
NetApp, Inc. (NTAP): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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