Analyzing Quantum (QTM) and Hewlett Packard Enterprise (HPE)

Quantum (NYSE: QTM) and Hewlett Packard Enterprise (NYSE:HPE) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Valuation & Earnings

This table compares Quantum and Hewlett Packard Enterprise’s 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 ($0.25) -16.04
Hewlett Packard Enterprise $28.87 billion 0.85 $344.00 million $0.25 61.88

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

Profitability

This table compares Quantum and Hewlett Packard Enterprise’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%
Hewlett Packard Enterprise 0.93% 7.70% 3.15%

Dividends

Hewlett Packard Enterprise pays an annual dividend of $0.30 per share and has a dividend yield of 1.9%. Quantum does not pay a dividend. Hewlett Packard Enterprise pays out 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

64.5% of Quantum shares are held by institutional investors. Comparatively, 83.1% of Hewlett Packard Enterprise shares are held by institutional investors. 8.6% of Quantum shares are held by company insiders. Comparatively, 0.9% of Hewlett Packard Enterprise shares are held by company 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.

Analyst Ratings

This is a summary of current recommendations and price targets for Quantum and Hewlett Packard Enterprise, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quantum 0 0 1 0 3.00
Hewlett Packard Enterprise 2 19 9 0 2.23

Quantum currently has a consensus target price of $10.00, suggesting a potential upside of 149.38%. Hewlett Packard Enterprise has a consensus target price of $16.21, suggesting a potential upside of 4.77%. Given Quantum’s stronger consensus rating and higher possible upside, research analysts plainly believe Quantum is more favorable than Hewlett Packard Enterprise.

Summary

Hewlett Packard Enterprise beats Quantum on 11 of the 15 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.

Hewlett Packard Enterprise Company Profile

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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