Hewlett Packard Enterprise (NYSE: HPE) is one of 31 public companies in the “Computer Hardware” industry, but how does it compare to its competitors? We will compare Hewlett Packard Enterprise to related businesses based on the strength of its dividends, institutional ownership, risk, earnings, analyst recommendations, profitability and valuation.
Risk and Volatility
Hewlett Packard Enterprise has a beta of 2.72, meaning that its stock price is 172% more volatile than the S&P 500. Comparatively, Hewlett Packard Enterprise’s competitors have a beta of 1.28, meaning that their average stock price is 28% more volatile than the S&P 500.
Institutional and Insider Ownership
80.2% of Hewlett Packard Enterprise shares are held by institutional investors. Comparatively, 62.2% of shares of all “Computer Hardware” companies are held by institutional investors. 0.9% of Hewlett Packard Enterprise shares are held by company insiders. Comparatively, 13.8% of shares of all “Computer Hardware” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Hewlett Packard Enterprise and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hewlett Packard Enterprise||0.29%||9.04%||3.72%|
|Hewlett Packard Enterprise Competitors||4.23%||10.70%||6.40%|
Earnings & Valuation
This table compares Hewlett Packard Enterprise and its competitors revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Hewlett Packard Enterprise||$48.08 billion||$7.31 billion||187.46|
|Hewlett Packard Enterprise Competitors||$21.02 billion||$4.40 billion||19.14|
Hewlett Packard Enterprise has higher revenue and earnings than its competitors. Hewlett Packard Enterprise is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Hewlett Packard Enterprise pays an annual dividend of $0.26 per share and has a dividend yield of 2.0%. 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. As a group, “Computer Hardware” companies pay a dividend yield of 2.6% and pay out 58.2% of their earnings in the form of a dividend. Hewlett Packard Enterprise lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.
This is a summary of recent ratings and price targets for Hewlett Packard Enterprise and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hewlett Packard Enterprise||2||16||11||0||2.31|
|Hewlett Packard Enterprise Competitors||310||1512||3180||123||2.61|
Hewlett Packard Enterprise currently has a consensus price target of $18.28, indicating a potential upside of 39.35%. As a group, “Computer Hardware” companies have a potential downside of 6.84%. Given Hewlett Packard Enterprise’s higher probable upside, analysts clearly believe Hewlett Packard Enterprise is more favorable than its competitors.
Hewlett Packard Enterprise competitors beat Hewlett Packard Enterprise on 10 of the 15 factors compared.
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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