Analyzing Dell (DELL) and HP (HPQ)

Dell (NASDAQ: DELL) and HP (NYSE:HPQ) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Dell N/A N/A N/A
HP 4.85% -70.25% 9.25%

Analyst Recommendations

This is a breakdown of current ratings for Dell and HP, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dell 0 0 0 0 N/A
HP 0 12 8 0 2.40

HP has a consensus target price of $22.82, indicating a potential upside of 13.45%.

Valuation & Earnings

This table compares Dell and HP’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dell N/A N/A N/A $5.91 N/A
HP $52.06 billion 0.64 $2.53 billion $1.49 13.50

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

Dividends

HP pays an annual dividend of $0.56 per share and has a dividend yield of 2.8%. Dell does not pay a dividend. HP pays out 37.6% of its earnings in the form of a dividend.

Insider & Institutional Ownership

81.2% 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

HP beats Dell on 7 of the 10 factors compared between the two stocks.

Dell Company Profile

Dell Inc. (Dell) is a global information technology company that offers its customers a range of solutions and services delivered directly by Dell and through other distribution channels. Dell is a holding company that conducts its business worldwide through its subsidiaries. The Company operates in four segments: Large Enterprise, Public, Small and Medium Business, and Consumer. The Company’s Large Enterprise customers include global and national corporate businesses. Its Public customers, which include educational institutions, government, health care, and law enforcement agencies, operate in their own communities. Its SMB segment is focused on helping small and medium-sized businesses by offering products, services, and solutions. Its Consumer segment is focused on delivering technology experience of entertainment, mobility, gaming, and design. In March 2014, the Company acquired StatSoft, a provider of advanced analytics solutions.

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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