Comparing HP (HPQ) and Silicon Graphics International Corp (NASDAQ:SGI)
HP (NYSE: HPQ) and Silicon Graphics International Corp (NASDAQ:SGI) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitabiliy, analyst recommendations, risk, institutional ownership and valuation.
This is a breakdown of recent recommendations and price targets for HP and Silicon Graphics International Corp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Silicon Graphics International Corp||0||1||1||0||2.50|
HP currently has a consensus target price of $19.78, suggesting a potential upside of 4.64%. Silicon Graphics International Corp has a consensus target price of $7.75, suggesting a potential upside of 0.00%. Given HP’s stronger consensus rating and higher possible upside, analysts clearly believe HP is more favorable than Silicon Graphics International Corp.
Institutional & Insider Ownership
79.0% of HP shares are held by institutional investors. Comparatively, 80.9% of Silicon Graphics International Corp shares are held by institutional investors. 0.6% of HP shares are held by insiders. Comparatively, 3.9% of Silicon Graphics International Corp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
HP pays an annual dividend of $0.53 per share and has a dividend yield of 2.8%. Silicon Graphics International Corp does not pay a dividend. HP pays out 37.3% of its earnings in the form of a dividend.
Volatility and Risk
HP has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500. Comparatively, Silicon Graphics International Corp has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500.
This table compares HP and Silicon Graphics International Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Silicon Graphics International Corp||0.11%||0.98%||0.15%|
Valuation and Earnings
This table compares HP and Silicon Graphics International Corp’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|HP||$49.47 billion||0.64||$4.30 billion||$1.42||13.31|
|Silicon Graphics International Corp||N/A||N/A||N/A||($0.32)||-24.22|
HP has higher revenue and earnings than Silicon Graphics International Corp. Silicon Graphics International Corp is trading at a lower price-to-earnings ratio than HP, indicating that it is currently the more affordable of the two stocks.
HP beats Silicon Graphics International Corp on 8 of the 13 factors compared between the two stocks.
HP Company Profile
HP Inc. is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses, and enterprises, including customers in the government, health and education sectors. The Company provides personal computing and other access devices, imaging and printing products, and related technologies, solutions and services. Its segments include Personal Systems, Printing and Corporate Investments. The Personal Systems segment provides Commercial personal computers (PCs), Consumer PCs, workstations, thin clients, Commercial tablets and mobility devices, retail point-of-sale systems, displays and other accessories, software, support and services for the commercial and consumer markets. The Printing segment provides consumer and commercial printer hardware, supplies, media, solutions and services, as well as scanning devices. The Corporate Investments segment includes the operations of HP Labs and certain business incubation projects.
Silicon Graphics International Corp Company Profile
Silicon Graphics International Corp. (SGI) is engaged in providing solutions for compute, data analytics and data management. The Company develops, markets and sells a line of mid-range and high-end scale-out and scale-up servers, enterprise-class storage, differentiating software and designed-to-order solutions for data center deployments. The Company operates through the segments, including Product and Service. The Company’s Product segment consists of compute and storage solutions, which include products from both HPC and HPDA segments. The Company’s Product segment includes scale-out computing, scale-up computing, software and cloud/Web solutions. Its storage solutions include both hardware and software offerings for data storage and management. The Service segment consists of customer service support and professional services. SGI systems enable customers to access, analyze, transform, manage and visualize information in real and near real-time.
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