Knowles Corporation (NYSE: KN) and Hewlett Packard Enterprise (NYSE:HPE) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Knowles Corporation 0.25% 6.13% 4.09%
Hewlett Packard Enterprise 0.29% 9.04% 3.72%

Insider and Institutional Ownership

81.2% of Hewlett Packard Enterprise shares are owned by institutional investors. 2.2% of Knowles Corporation shares are owned by insiders. Comparatively, 0.9% of Hewlett Packard Enterprise shares are owned 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.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Knowles Corporation $859.30 million 1.68 -$42.30 million $0.02 806.40
Hewlett Packard Enterprise $50.12 billion 0.44 $3.16 billion $0.07 192.88

Hewlett Packard Enterprise has higher revenue and earnings than Knowles Corporation. Hewlett Packard Enterprise is trading at a lower price-to-earnings ratio than Knowles Corporation, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Knowles Corporation has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Hewlett Packard Enterprise has a beta of 2.59, indicating that its share price is 159% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Knowles Corporation and Hewlett Packard Enterprise, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Knowles Corporation 0 1 2 0 2.67
Hewlett Packard Enterprise 2 19 10 0 2.26

Knowles Corporation presently has a consensus price target of $19.33, indicating a potential upside of 19.93%. Hewlett Packard Enterprise has a consensus price target of $17.52, indicating a potential upside of 29.78%. Given Hewlett Packard Enterprise’s higher probable upside, analysts clearly believe Hewlett Packard Enterprise is more favorable than Knowles Corporation.

Dividends

Hewlett Packard Enterprise pays an annual dividend of $0.26 per share and has a dividend yield of 1.9%. Knowles Corporation does not pay a dividend. 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.

Summary

Hewlett Packard Enterprise beats Knowles Corporation on 10 of the 16 factors compared between the two stocks.

About Knowles Corporation

Knowles Corporation is a global supplier of micro-acoustic, audio processing and specialty component solutions, serving the mobile consumer electronics, communications, medical, military, aerospace and industrial markets. The Company operates through two segments: Mobile Consumer Electronics (MCE) and Specialty Components (SC). MCE designs and manufactures acoustic products, including microphones and audio processing technologies used in mobile handsets, wearables and other consumer electronic devices. SC specializes in the design and manufacture of specialized electronic components used in medical and life science applications, as well as solutions and components used in communications infrastructure and a range of other markets. It has sales, support and engineering facilities in North America, Europe and Asia, and manufacturing facilities in Asia. It also offers acoustics components used in hearing aids, as well as high-end oscillators (timing devices) and capacitors.

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.

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