HP (HPQ) vs. The Competition Head to Head Contrast

HP (NYSE: HPQ) is one of 32 publicly-traded companies in the “Computer Hardware” industry, but how does it compare to its rivals? We will compare HP to related companies based on the strength of its valuation, earnings, dividends, profitability, institutional ownership, risk and analyst recommendations.

Profitability

This table compares HP and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HP 4.66% -64.93% 9.10%
HP Competitors 3.81% 10.84% 5.96%

Institutional & Insider Ownership

79.2% of HP shares are owned by institutional investors. Comparatively, 61.9% of shares of all “Computer Hardware” companies are owned by institutional investors. 0.6% of HP shares are owned by insiders. Comparatively, 13.9% of shares of all “Computer Hardware” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for HP and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HP 0 8 13 0 2.62
HP Competitors 288 1521 3263 118 2.62

HP currently has a consensus target price of $21.58, indicating a potential upside of 0.49%. As a group, “Computer Hardware” companies have a potential upside of 14.25%. Given HP’s rivals higher possible upside, analysts clearly believe HP has less favorable growth aspects than its rivals.

Volatility & Risk

HP has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500. Comparatively, HP’s rivals have a beta of 1.15, meaning that their average stock price is 15% more volatile than the S&P 500.

Dividends

HP pays an annual dividend of $0.53 per share and has a dividend yield of 2.5%. HP pays out 38.1% of its earnings in the form of a dividend. As a group, “Computer Hardware” companies pay a dividend yield of 3.1% and pay out 56.1% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares HP and its rivals gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
HP $48.24 billion $2.50 billion 15.45
HP Competitors $25.85 billion $3.18 billion 197.61

HP has higher revenue, but lower earnings than its rivals. HP is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

HP rivals beat HP on 8 of the 15 factors compared.

About HP

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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