Analyzing Hewlett Packard Enterprise Company (HPE) & Fusion-IO (FIO)
Fusion-IO (NYSE: FIO) and Hewlett Packard Enterprise Company (NYSE:HPE) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitabiliy, dividends, valuation and earnings.
Valuation & Earnings
This table compares Fusion-IO and Hewlett Packard Enterprise Company’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hewlett Packard Enterprise Company||$48.08 billion||0.57||$7.31 billion||$1.29||12.81|
Hewlett Packard Enterprise Company has higher revenue and earnings than Fusion-IO.
Hewlett Packard Enterprise Company pays an annual dividend of $0.26 per share and has a dividend yield of 1.6%. Fusion-IO does not pay a dividend. Hewlett Packard Enterprise Company pays out 20.2% of its earnings in the form of a dividend.
This table compares Fusion-IO and Hewlett Packard Enterprise Company’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hewlett Packard Enterprise Company||4.85%||9.80%||4.05%|
Insider and Institutional Ownership
81.2% of Hewlett Packard Enterprise Company shares are owned by institutional investors. 0.9% of Hewlett Packard Enterprise Company shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a summary of current recommendations for Fusion-IO and Hewlett Packard Enterprise Company, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hewlett Packard Enterprise Company||1||15||11||0||2.37|
Hewlett Packard Enterprise Company has a consensus price target of $21.55, indicating a potential upside of 30.43%. Given Hewlett Packard Enterprise Company’s higher possible upside, analysts clearly believe Hewlett Packard Enterprise Company is more favorable than Fusion-IO.
Hewlett Packard Enterprise Company beats Fusion-IO on 9 of the 10 factors compared between the two stocks.
Fusion-IO Company Profile
Fusion-io, Inc. provides solutions for enterprises, hyperscale datacenters, and small to medium enterprises (SMEs), that accelerates databases, virtualization, mission-critical applications, cloud computing, big data, and information systems. Its hardware and software platforms and solutions enable the acceleration of data and applications. It sells its solutions through a global direct sales force, original equipment manufacturers. The Company’s portfolio of storage memory products packages ioMemory hardware combined with its VSL software into a family of products suitable for direct, shared, and cached acceleration environments. Direct acceleration is provided by its ioDrive, ioScale, and ioFX enterprise grade PCIe-products that leverage flash and are placed in x86 servers or workstations to directly accelerate locally hosted applications. Its shared acceleration is provided by its ION Data Accelerator or ioControl software combined with ioMemory, VSL, and industry-standard servers.
Hewlett Packard Enterprise Company 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.
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