Digital River (NASDAQ: DRIV) and HP (NYSE:HPQ) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Dividends

HP pays an annual dividend of $0.53 per share and has a dividend yield of 2.5%. Digital River does not pay a dividend. HP pays out 38.4% of its earnings in the form of a dividend.

Profitability

This table compares Digital River and HP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digital River 4.52% 4.51% 2.18%
HP 4.66% -64.93% 9.10%

Analyst Recommendations

This is a breakdown of recent ratings for Digital River and HP, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digital River 0 0 0 0 N/A
HP 0 8 13 0 2.62

Institutional and Insider Ownership

79.2% of HP shares are owned by institutional investors. 0.6% of HP shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Digital River and HP’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Digital River N/A N/A N/A N/A N/A
HP $48.24 billion 0.74 $2.50 billion $1.38 15.56

HP has higher revenue and earnings than Digital River.

Summary

HP beats Digital River on 7 of the 9 factors compared between the two stocks.

About Digital River

Digital River, Inc. (Digital River) is engaged in providing Commerce-as-a-Service solutions. The Company operates through a single segment, being providing solutions to companies that want to sell their products and services online. It provides commerce, payments and marketing solutions to business-to-business (B2B) and business-to-consumer (B2C) digital product and cloud service companies and manufacturers. The Company’s Commerce-as-a-Service suite includes commerce experience, tools and capabilities; Commerce Business Infrastructure (CBI); and marketing services. Its payments solutions offer customers a global payments footprint, including a range of domestic and international payment solutions, 180 global payment methods, 170 international currencies and 50 connections to local banks from across the globe. It provides a range of marketing services including paid search advertising, search engine optimization, affiliate marketing, store optimization and others.

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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