HP (NYSE: HPQ) and Seagate Technology PLC (NASDAQ:STX) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Volatility and Risk

HP has a beta of 1.94, meaning that its stock price is 94% more volatile than the S&P 500. Comparatively, Seagate Technology PLC has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500.

Institutional & Insider Ownership

79.2% of HP shares are held by institutional investors. Comparatively, 90.2% of Seagate Technology PLC shares are held by institutional investors. 0.6% of HP shares are held by insiders. Comparatively, 0.9% of Seagate Technology PLC shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for HP and Seagate Technology PLC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HP 0 8 13 0 2.62
Seagate Technology PLC 3 20 6 1 2.17

HP presently has a consensus price target of $20.83, indicating a potential upside of 1.24%. Seagate Technology PLC has a consensus price target of $40.81, indicating a potential upside of 20.93%. Given Seagate Technology PLC’s higher probable upside, analysts plainly believe Seagate Technology PLC is more favorable than HP.

Dividends

HP pays an annual dividend of $0.53 per share and has a dividend yield of 2.6%. Seagate Technology PLC pays an annual dividend of $2.52 per share and has a dividend yield of 7.5%. HP pays out 38.4% of its earnings in the form of a dividend. Seagate Technology PLC pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares HP and Seagate Technology PLC’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
HP $50.64 billion 0.68 $4.20 billion $1.38 14.91
Seagate Technology PLC $10.77 billion 0.90 $2.05 billion $2.58 13.08

HP has higher revenue and earnings than Seagate Technology PLC. Seagate Technology PLC is trading at a lower price-to-earnings ratio than HP, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares HP and Seagate Technology PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HP 4.66% -64.93% 9.10%
Seagate Technology PLC 7.17% 81.87% 13.66%

Summary

Seagate Technology PLC beats HP on 10 of the 17 factors compared between the two stocks.

About HP

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.

About Seagate Technology PLC

Seagate Technology public limited company is a provider of electronic data storage technology and solutions. The Company’s principal products are hard disk drives (HDDs). In addition to HDDs, it produces a range of electronic data storage products, including solid state hybrid drives, solid state drives, peripheral component interconnect express (PCIe) cards and serial advanced technology architecture (SATA) controllers. Its storage technology portfolio also includes storage subsystems and high performance computing solutions. Its products are designed for applications in enterprise servers and storage systems, client compute applications and client non-compute applications. It designs, fabricates and assembles various components found in its disk drives, including read/write heads and recording media. Its design and manufacturing operations are based on technology platforms that are used to produce various disk drive products that serve multiple data storage applications and markets.

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