HP (NYSE: HPQ) is one of 31 public companies in the “Computer Hardware” industry, but how does it weigh in compared to its competitors? We will compare HP to related businesses based on the strength of its institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.

Dividends

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.

Institutional and Insider Ownership

79.0% of HP shares are held by institutional investors. Comparatively, 62.1% of shares of all “Computer Hardware” companies are held by institutional investors. 0.6% of HP shares are held by insiders. Comparatively, 13.9% of shares of all “Computer Hardware” companies are held 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.

Risk & 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.

Earnings and Valuation

This table compares HP and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
HP $50.64 billion $4.20 billion 16.03
HP Competitors $21.04 billion $4.38 billion 19.93

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.

Profitability

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 4.66% -64.93% 9.10%
HP Competitors 3.69% 10.03% 5.95%

Analyst Recommendations

This is a summary of recent recommendations and price targets for HP and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HP 0 8 13 0 2.62
HP Competitors 270 1431 3182 116 2.63

HP presently has a consensus target price of $21.43, suggesting a potential downside of 3.14%. As a group, “Computer Hardware” companies have a potential upside of 3.47%. Given HP’s competitors stronger consensus rating and higher possible upside, analysts plainly believe HP has less favorable growth aspects than its competitors.

Summary

HP competitors beat HP on 9 of the 15 factors compared.

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.

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