Knowles Corporation (KN) vs. HP (HPQ) Critical Comparison
Knowles Corporation (NYSE: KN) and HP (NYSE:HPQ) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.
Earnings and Valuation
This table compares Knowles Corporation and HP’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Knowles Corporation||$867.60 million||1.49||$141.10 million||($0.23)||-62.95|
|HP||$50.64 billion||0.63||$4.20 billion||$1.38||13.86|
HP has higher revenue and earnings than Knowles Corporation. Knowles Corporation is trading at a lower price-to-earnings ratio than HP, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
78.5% of HP shares are held by institutional investors. 2.2% of Knowles Corporation shares are held by company insiders. Comparatively, 0.6% of HP shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for Knowles Corporation and HP, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Knowles Corporation presently has a consensus target price of $18.50, indicating a potential upside of 27.76%. HP has a consensus target price of $20.58, indicating a potential upside of 7.61%. Given Knowles Corporation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Knowles Corporation is more favorable than HP.
HP pays an annual dividend of $0.53 per share and has a dividend yield of 2.8%. Knowles Corporation does not pay a dividend. HP pays out 38.4% of its earnings in the form of a dividend.
This table compares Knowles Corporation and HP’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Knowles Corporation has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, HP has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500.
HP beats Knowles Corporation on 9 of the 15 factors compared between the two stocks.
About Knowles Corporation
Knowles Corporation is a global supplier of micro-acoustic, audio processing and specialty component solutions, serving the mobile consumer electronics, communications, medical, military, aerospace and industrial markets. The Company operates through two segments: Mobile Consumer Electronics (MCE) and Specialty Components (SC). MCE designs and manufactures acoustic products, including microphones and audio processing technologies used in mobile handsets, wearables and other consumer electronic devices. SC specializes in the design and manufacture of specialized electronic components used in medical and life science applications, as well as solutions and components used in communications infrastructure and a range of other markets. It has sales, support and engineering facilities in North America, Europe and Asia, and manufacturing facilities in Asia. It also offers acoustics components used in hearing aids, as well as high-end oscillators (timing devices) and capacitors.
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.
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