Hewlett Packard Enterprise (NYSE: HPE) and Knowles Corporation (NYSE:KN) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.
Institutional and Insider Ownership
81.3% of Hewlett Packard Enterprise shares are owned by institutional investors. 0.9% of Hewlett Packard Enterprise shares are owned by insiders. Comparatively, 2.2% of Knowles Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of recent ratings and price targets for Hewlett Packard Enterprise and Knowles Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hewlett Packard Enterprise||2||18||11||0||2.29|
Hewlett Packard Enterprise presently has a consensus target price of $17.76, suggesting a potential upside of 21.56%. Knowles Corporation has a consensus target price of $19.33, suggesting a potential upside of 22.91%. Given Knowles Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Knowles Corporation is more favorable than Hewlett Packard Enterprise.
This table compares Hewlett Packard Enterprise and Knowles Corporation’s 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%|
Earnings and Valuation
This table compares Hewlett Packard Enterprise and Knowles Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hewlett Packard Enterprise||$48.29 billion||0.49||$6.92 billion||$0.07||208.74|
|Knowles Corporation||$867.60 million||1.62||$141.10 million||($0.23)||-68.39|
Hewlett Packard Enterprise has higher revenue and earnings than Knowles Corporation. Knowles Corporation 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.
Hewlett Packard Enterprise pays an annual dividend of $0.26 per share and has a dividend yield of 1.8%. 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.
Risk & Volatility
Hewlett Packard Enterprise has a beta of 2.72, suggesting that its share price is 172% more volatile than the S&P 500. Comparatively, Knowles Corporation has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.
Hewlett Packard Enterprise beats Knowles Corporation on 9 of the 15 factors compared between the two stocks.
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.
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.
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