HP (NYSE: HPQ) and Diebold, (NYSE:DBD) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitabiliy.
Institutional and Insider Ownership
80.4% of HP shares are held by institutional investors. Comparatively, 90.7% of Diebold, shares are held by institutional investors. 0.6% of HP shares are held by insiders. Comparatively, 1.4% of Diebold, shares are held by 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 table compares HP and Diebold,’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares HP and Diebold,’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|HP||$49.47 billion||0.61||$4.30 billion||$1.42||12.54|
|Diebold,||$3.91 billion||0.51||$245.60 million||($3.58)||-7.33|
HP has higher revenue and earnings than Diebold,. Diebold, is trading at a lower price-to-earnings ratio than HP, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
HP has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500. Comparatively, Diebold, has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500.
HP pays an annual dividend of $0.53 per share and has a dividend yield of 3.0%. Diebold, pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. HP pays out 37.3% of its earnings in the form of a dividend. Diebold, pays out -11.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This is a summary of recent recommendations and price targets for HP and Diebold,, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
HP presently has a consensus price target of $19.56, indicating a potential upside of 9.86%. Diebold, has a consensus price target of $35.40, indicating a potential upside of 34.86%. Given Diebold,’s stronger consensus rating and higher probable upside, analysts clearly believe Diebold, is more favorable than HP.
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.
Diebold, Company Profile
Diebold Nixdorf, Incorporated provides connected commerce services, software and technology. The Company’s geographic segments include North America (NA), Asia Pacific (AP), Europe, Middle East and Africa (EMEA), and Latin America (LA). These segments sell and service financial self-service (FSS), retail solutions and security systems. The Company is engaged in providing connected commerce solutions to financial institutions. These solutions are supported by a field service organization. The Company provides security solutions, which combine a services portfolio and products to help address its customers’ needs. The Company provides services for a portfolio of physical security offerings, in addition to serving as a national locksmith. The Company provides voting machines for official elections and the terminals for the governmental lottery and correspondent bank.
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