Analyzing HP (HPQ) and RadiSys Corporation (RSYS)
HP (NYSE: HPQ) and RadiSys Corporation (NASDAQ:RSYS) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.
This table compares HP and RadiSys Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
HP has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500. Comparatively, RadiSys Corporation has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.
Institutional & Insider Ownership
79.9% of HP shares are owned by institutional investors. Comparatively, 57.3% of RadiSys Corporation shares are owned by institutional investors. 0.6% of HP shares are owned by insiders. Comparatively, 4.9% of RadiSys Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for HP and RadiSys Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
HP presently has a consensus price target of $19.78, suggesting a potential upside of 4.25%. RadiSys Corporation has a consensus price target of $3.63, suggesting a potential upside of 136.93%. Given RadiSys Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe RadiSys Corporation is more favorable than HP.
Valuation and Earnings
This table compares HP and RadiSys Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|HP||$49.47 billion||0.65||$4.30 billion||$1.42||13.36|
|RadiSys Corporation||$168.66 million||0.35||-$8.87 million||($0.63)||-2.43|
HP has higher revenue and earnings than RadiSys Corporation. RadiSys Corporation is trading at a lower price-to-earnings ratio than HP, indicating that it is currently the more affordable of the two stocks.
HP pays an annual dividend of $0.53 per share and has a dividend yield of 2.8%. RadiSys Corporation does not pay a dividend. HP pays out 37.3% of its earnings in the form of a dividend.
HP beats RadiSys Corporation on 10 of the 15 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.
RadiSys Corporation Company Profile
Radisys Corporation (Radisys) is a services acceleration company. The Company’s application aware traffic distribution platforms, real-time media processing products and wireless access technologies enable service providers to virtualize and monetize their networks. The Company’s products and services are organized into two segments: Software-Systems, and Embedded Products and Hardware Services. The Company’s Software-Systems segment consists of three product families: FlowEngine, MediaEngine and CellEngine. Also included in the Software-Systems segment is its Professional Service organization. The Company’s Embedded Products and Hardware Services segment provides customers with hardware based products targeted at the communications and healthcare markets. Products within this segment fall under primary categories, including T-Series Advanced Telecommunications Computing Architecture (ATCA) Platforms, Component Object Model (COM) Express and Rackmount Servers, and Other Products.
Receive News & Ratings for HP Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for HP Inc. and related companies with MarketBeat.com's FREE daily email newsletter.