Comparing RadiSys Corporation (RSYS) & Hewlett Packard Enterprise (HPE)
RadiSys Corporation (NASDAQ: RSYS) and Hewlett Packard Enterprise (NYSE:HPE) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.
Insider and Institutional Ownership
58.7% of RadiSys Corporation shares are owned by institutional investors. Comparatively, 80.2% of Hewlett Packard Enterprise shares are owned by institutional investors. 4.9% of RadiSys Corporation shares are owned by insiders. Comparatively, 0.9% of Hewlett Packard Enterprise shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a summary of current ratings and price targets for RadiSys Corporation and Hewlett Packard Enterprise, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hewlett Packard Enterprise||2||16||11||0||2.31|
RadiSys Corporation presently has a consensus target price of $3.63, suggesting a potential upside of 126.56%. Hewlett Packard Enterprise has a consensus target price of $18.70, suggesting a potential upside of 35.77%. Given RadiSys Corporation’s stronger consensus rating and higher possible upside, equities analysts plainly believe RadiSys Corporation is more favorable than Hewlett Packard Enterprise.
Hewlett Packard Enterprise pays an annual dividend of $0.26 per share and has a dividend yield of 1.9%. RadiSys Corporation 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.
Valuation & Earnings
This table compares RadiSys Corporation and Hewlett Packard Enterprise’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|RadiSys Corporation||$168.66 million||0.37||-$8.87 million||($0.63)||-2.54|
|Hewlett Packard Enterprise||$48.08 billion||0.47||$7.31 billion||$0.07||196.74|
Hewlett Packard Enterprise has higher revenue and earnings than RadiSys Corporation. RadiSys Corporation 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 RadiSys Corporation and Hewlett Packard Enterprise’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hewlett Packard Enterprise||0.29%||8.92%||3.67%|
Volatility and Risk
RadiSys Corporation has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, Hewlett Packard Enterprise has a beta of 2.72, meaning that its stock price is 172% more volatile than the S&P 500.
Hewlett Packard Enterprise beats RadiSys Corporation on 11 of the 15 factors compared between the two stocks.
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.
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.
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