Analyzing Hewlett Packard Enterprise (NYSE:HPE) & Tech Data (NYSE:TECD)
Hewlett Packard Enterprise (NYSE:HPE) and Tech Data (NASDAQ:TECD) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.
Earnings & Valuation
This table compares Hewlett Packard Enterprise and Tech Data’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hewlett Packard Enterprise||$29.14 billion||0.43||$1.05 billion||$1.77||5.50|
|Tech Data||$37.00 billion||0.14||$374.50 million||$12.58||11.52|
This table compares Hewlett Packard Enterprise and Tech Data’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hewlett Packard Enterprise||-0.13%||12.35%||4.03%|
Risk and Volatility
Hewlett Packard Enterprise has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Tech Data has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.
Insider and Institutional Ownership
79.8% of Hewlett Packard Enterprise shares are held by institutional investors. Comparatively, 91.0% of Tech Data shares are held by institutional investors. 0.4% of Hewlett Packard Enterprise shares are held by insiders. Comparatively, 1.1% of Tech Data shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for Hewlett Packard Enterprise and Tech Data, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hewlett Packard Enterprise||2||14||4||0||2.10|
Hewlett Packard Enterprise presently has a consensus target price of $12.78, indicating a potential upside of 31.29%. Tech Data has a consensus target price of $131.67, indicating a potential downside of 9.13%. Given Hewlett Packard Enterprise’s higher probable upside, equities research analysts plainly believe Hewlett Packard Enterprise is more favorable than Tech Data.
Tech Data beats Hewlett Packard Enterprise on 8 of the 14 factors compared between the two stocks.
About Hewlett Packard Enterprise
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.
About Tech Data
Tech Data Corporation operates as an IT distribution and solutions company. The company offers endpoint portfolio solutions, including personal computer systems, mobile phones and accessories, printers, peripherals, supplies, endpoint technology software, and consumer electronics. It also provides advanced portfolio solutions, such as data center technologies comprising storage, networking, servers, advanced technology software, and converged and hyper-converged infrastructure, as well as specialized solutions. The company serves value-added resellers, direct marketers, retailers, corporate resellers, and managed service providers. It sells its products to customers in approximately 100 countries in North America, South America, Europe, the Middle East, Africa, and the Asia-Pacific region. The company was founded in 1974 and is headquartered in Clearwater, Florida.
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