Critical Survey: Seagate Technology PLC (STX) versus HP (HPQ)
Seagate Technology PLC (NASDAQ: STX) and HP (NYSE:HPQ) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.
This is a summary of current ratings for Seagate Technology PLC and HP, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Seagate Technology PLC||3||18||6||1||2.18|
Seagate Technology PLC currently has a consensus target price of $40.80, indicating a potential upside of 21.36%. HP has a consensus target price of $20.83, indicating a potential upside of 2.08%. Given Seagate Technology PLC’s higher possible upside, equities research analysts plainly believe Seagate Technology PLC is more favorable than HP.
Seagate Technology PLC pays an annual dividend of $2.52 per share and has a dividend yield of 7.5%. HP pays an annual dividend of $0.53 per share and has a dividend yield of 2.6%. Seagate Technology PLC pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. HP pays out 38.4% of its earnings in the form of a dividend.
This table compares Seagate Technology PLC and HP’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Seagate Technology PLC||7.17%||81.87%||13.66%|
Risk & Volatility
Seagate Technology PLC has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, HP has a beta of 1.94, meaning that its share price is 94% more volatile than the S&P 500.
Institutional & Insider Ownership
90.2% of Seagate Technology PLC shares are owned by institutional investors. Comparatively, 79.2% of HP shares are owned by institutional investors. 0.9% of Seagate Technology PLC shares are owned by company insiders. Comparatively, 0.6% of HP shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Seagate Technology PLC and HP’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Seagate Technology PLC||$10.77 billion||0.90||$2.05 billion||$2.58||13.03|
|HP||$50.64 billion||0.67||$4.20 billion||$1.38||14.78|
HP has higher revenue and earnings than Seagate Technology PLC. Seagate Technology PLC is trading at a lower price-to-earnings ratio than HP, indicating that it is currently the more affordable of the two stocks.
Seagate Technology PLC beats HP on 10 of the 17 factors compared between the two stocks.
Seagate Technology PLC Company Profile
Seagate Technology public limited company is a provider of electronic data storage technology and solutions. The Company’s principal products are hard disk drives (HDDs). In addition to HDDs, it produces a range of electronic data storage products, including solid state hybrid drives, solid state drives, peripheral component interconnect express (PCIe) cards and serial advanced technology architecture (SATA) controllers. Its storage technology portfolio also includes storage subsystems and high performance computing solutions. Its products are designed for applications in enterprise servers and storage systems, client compute applications and client non-compute applications. It designs, fabricates and assembles various components found in its disk drives, including read/write heads and recording media. Its design and manufacturing operations are based on technology platforms that are used to produce various disk drive products that serve multiple data storage applications and markets.
HP Company Profile
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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