Digital River (NASDAQ: DRIV) and Hewlett Packard Enterprise (NYSE:HPE) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations and price targets for Digital River and Hewlett Packard Enterprise, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digital River 0 0 0 0 N/A
Hewlett Packard Enterprise 2 16 11 0 2.31

Hewlett Packard Enterprise has a consensus price target of $18.00, indicating a potential upside of 22.53%. Given Hewlett Packard Enterprise’s higher probable upside, analysts plainly believe Hewlett Packard Enterprise is more favorable than Digital River.

Profitability

This table compares Digital River and Hewlett Packard Enterprise’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digital River 4.52% 4.51% 2.18%
Hewlett Packard Enterprise 0.29% 9.04% 3.72%

Insider and Institutional Ownership

81.3% 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, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Digital River and Hewlett Packard Enterprise’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Digital River N/A N/A N/A N/A N/A
Hewlett Packard Enterprise $48.29 billion 0.49 $6.92 billion $0.07 209.89

Hewlett Packard Enterprise has higher revenue and earnings than Digital River.

Dividends

Hewlett Packard Enterprise pays an annual dividend of $0.26 per share and has a dividend yield of 1.8%. Digital River does not pay a dividend. Hewlett Packard Enterprise pays out 371.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Hewlett Packard Enterprise beats Digital River on 8 of the 10 factors compared between the two stocks.

About Digital River

Digital River, Inc. (Digital River) is engaged in providing Commerce-as-a-Service solutions. The Company operates through a single segment, being providing solutions to companies that want to sell their products and services online. It provides commerce, payments and marketing solutions to business-to-business (B2B) and business-to-consumer (B2C) digital product and cloud service companies and manufacturers. The Company’s Commerce-as-a-Service suite includes commerce experience, tools and capabilities; Commerce Business Infrastructure (CBI); and marketing services. Its payments solutions offer customers a global payments footprint, including a range of domestic and international payment solutions, 180 global payment methods, 170 international currencies and 50 connections to local banks from across the globe. It provides a range of marketing services including paid search advertising, search engine optimization, affiliate marketing, store optimization and others.

About Hewlett Packard Enterprise

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.

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