Critical Comparison: Wayside Technology Group (NASDAQ:WSTG) and Hewlett Packard Enterprise (NASDAQ:HPE)
Wayside Technology Group (NASDAQ:WSTG) and Hewlett Packard Enterprise (NYSE:HPE) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.
Wayside Technology Group pays an annual dividend of $0.68 per share and has a dividend yield of 2.8%. Hewlett Packard Enterprise pays an annual dividend of $0.48 per share and has a dividend yield of 5.0%. Hewlett Packard Enterprise pays out 27.1% of its earnings in the form of a dividend. Hewlett Packard Enterprise has increased its dividend for 3 consecutive years. Hewlett Packard Enterprise is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Wayside Technology Group has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Hewlett Packard Enterprise has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.
Valuation & Earnings
This table compares Wayside Technology Group and Hewlett Packard Enterprise’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wayside Technology Group||$208.76 million||0.50||$6.79 million||N/A||N/A|
|Hewlett Packard Enterprise||$29.14 billion||0.42||$1.05 billion||$1.77||5.41|
Hewlett Packard Enterprise has higher revenue and earnings than Wayside Technology Group.
This table compares Wayside Technology Group and Hewlett Packard Enterprise’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wayside Technology Group||2.72%||16.97%||6.40%|
|Hewlett Packard Enterprise||-0.13%||12.35%||4.03%|
Institutional & Insider Ownership
42.5% of Wayside Technology Group shares are held by institutional investors. Comparatively, 79.8% of Hewlett Packard Enterprise shares are held by institutional investors. 7.6% of Wayside Technology Group shares are held by company insiders. Comparatively, 0.4% of Hewlett Packard Enterprise shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of current ratings and price targets for Wayside Technology Group and Hewlett Packard Enterprise, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wayside Technology Group||0||0||0||0||N/A|
|Hewlett Packard Enterprise||2||14||4||0||2.10|
Hewlett Packard Enterprise has a consensus price target of $12.78, indicating a potential upside of 33.35%. Given Hewlett Packard Enterprise’s higher probable upside, analysts plainly believe Hewlett Packard Enterprise is more favorable than Wayside Technology Group.
Hewlett Packard Enterprise beats Wayside Technology Group on 8 of the 15 factors compared between the two stocks.
Wayside Technology Group Company Profile
Wayside Technology Group, Inc. operates as an information technology channel company worldwide. It operates in two segments, Lifeboat Distribution and TechXtend. The company distributes technical software and hardware to corporate and value added resellers, consultants, and systems integrators; and software, hardware, and services for corporations, government organizations, and academic institutions. It also resells computer software and hardware developed by others, as well as provides technical services to end user customers in the United States and Canada. In addition, the company offers a line of products from various publishers of software; and tools for virtualization/cloud computing, security, networking, storage and infrastructure management, application lifecycle management, and other technically sophisticated domains, as well as computer hardware. Wayside Technology Group, Inc. markets its products through own Websites, local and online seminars, Webinars, and social media, as well as direct email and printed materials. The company was formerly known as Programmer's Paradise, Inc. and changed its name to Wayside Technology Group, Inc. in August 2006. Wayside Technology Group, Inc. was founded in 1982 and is headquartered in Eatontown, New Jersey.
Hewlett Packard Enterprise Company Profile
Hewlett Packard Enterprise Company operates as a technology company. The company operates through four segments: Hybrid IT, Intelligent Edge, Financial Services, and Corporate Investments. The Hybrid IT segment provides industry standard servers for multi-workload computing; mission-critical servers; converged storage solutions, including all-flash arrays and hybrid storage solutions; and traditional storage solutions comprising tape, storage networking, and disk products, such as HPE MSA and HPE XP. It also offers data center networking products, such as top-of-rack switches, core switches, and open networking switches; and operational services, advisory and professional services, and communications and media solutions. The Intelligent Edge segment provides solutions for mobility and Internet of things, as well as enterprise networking and security solutions for businesses campus and branch environments under the Aruba brand. This segment also offers wired and wireless local area network products, such as Wi-Fi access points, switches, routers; and software products, including network management, network access control, analytics and assurance, and location services software. The Financial Services segment offers various flexible investment solutions, which comprise leasing, financing, IT consumption, and utility programs and asset management services for customers to enable the creation of unique technology deployment models and acquire complete IT solutions. The Corporate Investments segment is involved in Hewlett Packard labs and various business incubation activities. The company serves small and medium-sized businesses and large enterprises. It has strategic alliance with ABB Ltd. Hewlett Packard Enterprise Company was founded in 1939 and is headquartered in Palo Alto, California.
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