Comparing HP (HPQ) and Its Competitors
HP (NYSE: HPQ) is one of 31 public companies in the “Computer Hardware” industry, but how does it contrast to its peers? We will compare HP to similar businesses based on the strength of its risk, institutional ownership, earnings, analyst recommendations, valuation, profitability and dividends.
Risk & Volatility
HP has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500. Comparatively, HP’s peers have a beta of 1.29, indicating that their average share price is 29% more volatile than the S&P 500.
Valuation and Earnings
This table compares HP and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|HP||$50.64 billion||$4.20 billion||15.73|
|HP Competitors||$21.04 billion||$4.38 billion||20.36|
HP has higher revenue, but lower earnings than its peers. HP is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This is a summary of recent recommendations and price targets for HP and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
HP currently has a consensus price target of $21.23, suggesting a potential downside of 2.23%. As a group, “Computer Hardware” companies have a potential downside of 7.67%. Given HP’s higher possible upside, analysts plainly believe HP is more favorable than its peers.
HP pays an annual dividend of $0.53 per share and has a dividend yield of 2.4%. HP pays out 38.4% 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 70.6% of their earnings in the form of a dividend.
Institutional and Insider Ownership
79.2% of HP shares are owned by institutional investors. Comparatively, 62.0% of shares of all “Computer Hardware” companies are owned by institutional investors. 0.6% of HP shares are owned by company insiders. Comparatively, 13.9% of shares of all “Computer Hardware” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares HP and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
HP peers beat HP on 8 of the 15 factors compared.
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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