Contrasting Quantum (QTM) & HP (HPQ)

Quantum (NYSE: QTM) and HP (NYSE:HPQ) 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, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Valuation and Earnings

This table compares Quantum and HP’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Quantum $505.35 million 0.28 $3.64 million ($0.24) -16.83
HP $52.06 billion 0.64 $2.53 billion $1.48 13.59

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

Volatility & Risk

Quantum has a beta of 2.17, suggesting that its share price is 117% more volatile than the S&P 500. Comparatively, HP has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Quantum and HP, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quantum 0 0 1 0 3.00
HP 0 12 8 0 2.40

Quantum presently has a consensus price target of $10.00, indicating a potential upside of 147.52%. HP has a consensus price target of $22.82, indicating a potential upside of 13.45%. Given Quantum’s stronger consensus rating and higher probable upside, equities analysts clearly believe Quantum is more favorable than HP.

Insider & Institutional Ownership

65.0% of Quantum shares are owned by institutional investors. Comparatively, 81.2% of HP shares are owned by institutional investors. 8.6% of Quantum shares are owned by company insiders. Comparatively, 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 stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Quantum -1.77% -7.26% -0.83%
HP 4.85% -70.25% 9.25%

Dividends

HP pays an annual dividend of $0.56 per share and has a dividend yield of 2.8%. Quantum does not pay a dividend. HP pays out 37.8% of its earnings in the form of a dividend.

Summary

HP beats Quantum on 10 of the 16 factors compared between the two stocks.

Quantum Company Profile

Quantum Corporation focuses on scale-out storage, archive and data protection, providing solutions for capturing, sharing, managing and preserving digital assets over the entire data lifecycle. The Company’s end-to-end tiered storage solutions enable users to maximize the value of their data by making it accessible whenever and wherever needed, retaining it indefinitely and reducing total cost and complexity. It works with a network of distributors, value-added resellers (VARs), direct marketing resellers (DMRs), original equipment manufacturers (OEMs) and other suppliers to meet customers’ evolving needs. Its scale-out storage portfolio includes StorNext software, appliances and full systems called StorNext Pro Solutions, as well as Xcellis workflow storage, QXS disk storage, Lattus extended online storage and Q-Cloud Archive and Vault services. Its StorNext offerings enable customers to manage large unstructured data sets in an information workflow.

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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