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

Institutional and Insider Ownership

81.3% of Hewlett Packard Enterprise shares are owned by institutional investors. Comparatively, 37.8% of Logitech International shares are owned by institutional investors. 0.9% of Hewlett Packard Enterprise shares are owned by insiders. Comparatively, 2.2% of Logitech International 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.

Analyst Ratings

This is a breakdown of current recommendations for Hewlett Packard Enterprise and Logitech International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hewlett Packard Enterprise 2 16 11 0 2.31
Logitech International 0 1 4 0 2.80

Hewlett Packard Enterprise presently has a consensus target price of $18.00, indicating a potential upside of 22.53%. Logitech International has a consensus target price of $38.80, indicating a potential upside of 7.18%. Given Hewlett Packard Enterprise’s higher probable upside, equities research analysts plainly believe Hewlett Packard Enterprise is more favorable than Logitech International.

Dividends

Hewlett Packard Enterprise pays an annual dividend of $0.26 per share and has a dividend yield of 1.8%. Logitech International pays an annual dividend of $0.57 per share and has a dividend yield of 1.6%. 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. Logitech International pays out 46.0% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Hewlett Packard Enterprise and Logitech International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hewlett Packard Enterprise $48.29 billion 0.49 $6.92 billion $0.07 209.89
Logitech International $2.27 billion 2.61 $251.67 million $1.24 29.19

Hewlett Packard Enterprise has higher revenue and earnings than Logitech International. Logitech International 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Hewlett Packard Enterprise 0.29% 9.04% 3.72%
Logitech International 9.15% 25.18% 13.82%

Volatility & Risk

Hewlett Packard Enterprise has a beta of 2.71, indicating that its share price is 171% more volatile than the S&P 500. Comparatively, Logitech International has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Summary

Logitech International beats Hewlett Packard Enterprise on 9 of the 16 factors compared between the two stocks.

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.

About Logitech International

Logitech International S.A. is a holding company. The Company designs, manufactures and markets products that allow people to connect through music, gaming, video, computing, and other digital platforms. The Company operates through peripheral segment. The Company offers its products to a network of domestic and international customers, including direct sales to retailers, e-tailers, and indirect sales through distributors. The Company’s retail network across the world includes consumer electronics distributors, retailers, mass merchandisers, specialty electronics stores, computer and telecommunications stores, value-added resellers and online merchants. Its music solutions are focused primarily on mobile speakers, including its UE BOOM family of mobile wireless speakers, its Jaybird wireless audio wearables for sports and active lifestyles, and its custom in-ear headphones. It offers a range of gaming gear for gamers, including mice, keyboards, headsets, gamepads and steering wheels.

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