Hewlett Packard Enterprise (HPE) vs. SMART Technologies (SMT) Critical Analysis
Hewlett Packard Enterprise (NYSE: HPE) and SMART Technologies (NASDAQ:SMT) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.
Risk and Volatility
Hewlett Packard Enterprise has a beta of 2.72, indicating that its share price is 172% more volatile than the S&P 500. Comparatively, SMART Technologies has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.
Valuation and Earnings
This table compares Hewlett Packard Enterprise and SMART Technologies’ top-line revenue, earnings per share (EPS) 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||210.17|
Hewlett Packard Enterprise has higher revenue and earnings than SMART Technologies. SMART Technologies 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.
This is a breakdown of recent ratings and recommmendations for Hewlett Packard Enterprise and SMART Technologies, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hewlett Packard Enterprise||2||16||11||0||2.31|
Hewlett Packard Enterprise currently has a consensus target price of $18.00, indicating a potential upside of 22.37%. Given Hewlett Packard Enterprise’s higher possible upside, research analysts plainly believe Hewlett Packard Enterprise is more favorable than SMART Technologies.
Hewlett Packard Enterprise pays an annual dividend of $0.26 per share and has a dividend yield of 1.8%. SMART Technologies 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.
Insider and Institutional Ownership
81.3% of Hewlett Packard Enterprise shares are held by institutional investors. Comparatively, 11.7% of SMART Technologies shares are held by institutional investors. 0.9% of Hewlett Packard Enterprise shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Hewlett Packard Enterprise and SMART Technologies’ 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 beats SMART Technologies on 11 of the 12 factors compared between the two stocks.
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.
SMART Technologies Company Profile
SMART Technologies Inc. (SMART) is a provider of technology solutions. SMART solutions include large-format displays, collaboration software and services that enable teaching, learning and work experiences in schools and workplaces. Its hardware and software products for the education market include SMART Board interactive flat panels, SMART kapp digital capture board, SMART Board interactive whiteboards, SMART Learning Suite Software, SMART Notebook collaborative learning software, SMART lab, SMART response 2, SMART amp collaborative learning software and SMART Exchange. It offers a range of visual collaboration solutions, consisting of software combined with touch-sensitive interactive displays and remote conferencing capabilities. Its hardware and software products for the enterprise market include SMART kapp iQ and SMART kapp iQ Pro, kapp digital capture board, SMART Room System for Microsoft Skype for Business, SMART Meeting Pro software and Bridgit conferencing software.
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