Analyzing Hewlett Packard Enterprise (HPE) and Dell (DELL)
Hewlett Packard Enterprise (NYSE: HPE) and Dell (NASDAQ:DELL) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.
Hewlett Packard Enterprise pays an annual dividend of $0.26 per share and has a dividend yield of 1.8%. Dell does not pay a dividend. Hewlett Packard Enterprise pays out 144.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of recent recommendations and price targets for Hewlett Packard Enterprise and Dell, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hewlett Packard Enterprise||2||19||10||0||2.26|
Hewlett Packard Enterprise currently has a consensus target price of $17.20, indicating a potential upside of 22.07%.
Valuation and Earnings
This table compares Hewlett Packard Enterprise and Dell’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Hewlett Packard Enterprise||$50.12 billion||0.46||$3.16 billion||$0.18||78.28|
Hewlett Packard Enterprise has higher revenue and earnings than Dell. Dell is trading at a lower price-to-earnings ratio than Hewlett Packard Enterprise, indicating that it is currently the more affordable of the two stocks.
This table compares Hewlett Packard Enterprise and Dell’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hewlett Packard Enterprise||0.29%||9.04%||3.72%|
Insider & Institutional Ownership
81.4% of Hewlett Packard Enterprise shares are owned by institutional investors. 0.9% of Hewlett Packard Enterprise shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Hewlett Packard Enterprise beats Dell on 8 of the 10 factors compared between the two stocks.
Hewlett Packard Enterprise Company Profile
Hewlett Packard Enterprise Company is a provider of technology solutions. The Company’s segments include: Enterprise Group, Software, Financial Services and Corporate Investments. The Enterprise Group segment provides its customers with the technology infrastructure they need to optimize traditional information technology (IT). The Software segment allows its customers to automate IT operations to simplify, accelerate and secure business processes and drives the analytics that turn raw data into actionable knowledge. The Financial Services segment enables flexible IT consumption models, financial architectures and customized investment solutions for its customers. The Corporate Investments segment includes Hewlett Packard Labs and certain business incubation projects, among others.
Dell Company Profile
Dell Inc. (Dell) is a global information technology company that offers its customers a range of solutions and services delivered directly by Dell and through other distribution channels. Dell is a holding company that conducts its business worldwide through its subsidiaries. The Company operates in four segments: Large Enterprise, Public, Small and Medium Business, and Consumer. The Company’s Large Enterprise customers include global and national corporate businesses. Its Public customers, which include educational institutions, government, health care, and law enforcement agencies, operate in their own communities. Its SMB segment is focused on helping small and medium-sized businesses by offering products, services, and solutions. Its Consumer segment is focused on delivering technology experience of entertainment, mobility, gaming, and design. In March 2014, the Company acquired StatSoft, a provider of advanced analytics solutions.
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