Critical Survey: HP (HPQ) vs. Its Peers
HP (NYSE: HPQ) is one of 31 public companies in the “Computer Hardware” industry, but how does it compare to its competitors? We will compare HP to similar companies based on the strength of its risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Institutional and Insider Ownership
79.2% of HP shares are held by institutional investors. Comparatively, 62.0% of shares of all “Computer Hardware” companies are held by institutional investors. 0.6% of HP shares are held by company insiders. Comparatively, 13.9% of shares of all “Computer Hardware” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares HP and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
HP pays an annual dividend of $0.53 per share and has a dividend yield of 2.4%. HP pays out 38.4% of its earnings in the form of a dividend. As a group, “Computer Hardware” companies pay a dividend yield of 3.1% and pay out 70.6% of their earnings in the form of a dividend.
This is a breakdown of recent recommendations for HP and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
HP presently has a consensus target price of $21.43, indicating a potential downside of 2.44%. As a group, “Computer Hardware” companies have a potential downside of 7.80%. Given HP’s higher possible upside, equities research analysts clearly believe HP is more favorable than its competitors.
Risk and Volatility
HP has a beta of 1.94, suggesting that its share price is 94% more volatile than the S&P 500. Comparatively, HP’s competitors have a beta of 1.29, suggesting that their average share price is 29% more volatile than the S&P 500.
Valuation & Earnings
This table compares HP and its competitors revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|HP||$50.64 billion||$4.20 billion||15.91|
|HP Competitors||$21.04 billion||$4.38 billion||19.78|
HP has higher revenue, but lower earnings than its competitors. HP is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
HP competitors beat HP on 8 of the 15 factors compared.
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.
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