Hewlett Packard Enterprise (HPE) versus QLogic (QLGC) Critical Analysis
Hewlett Packard Enterprise (NYSE: HPE) and QLogic (NASDAQ:QLGC) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.
This table compares Hewlett Packard Enterprise and QLogic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hewlett Packard Enterprise||4.85%||9.80%||4.05%|
This is a summary of recent ratings and recommmendations for Hewlett Packard Enterprise and QLogic, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hewlett Packard Enterprise||1||14||11||0||2.38|
Hewlett Packard Enterprise currently has a consensus price target of $21.03, indicating a potential upside of 21.53%. Given Hewlett Packard Enterprise’s higher probable upside, analysts plainly believe Hewlett Packard Enterprise is more favorable than QLogic.
Hewlett Packard Enterprise pays an annual dividend of $0.26 per share and has a dividend yield of 1.5%. QLogic does not pay a dividend. Hewlett Packard Enterprise pays out 20.2% of its earnings in the form of a dividend.
Institutional and Insider Ownership
80.3% of Hewlett Packard Enterprise shares are owned by institutional investors. 0.9% of Hewlett Packard Enterprise shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Hewlett Packard Enterprise and QLogic’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hewlett Packard Enterprise||$48.08 billion||0.59||$7.31 billion||$1.29||13.41|
Hewlett Packard Enterprise has higher revenue and earnings than QLogic. Hewlett Packard Enterprise is trading at a lower price-to-earnings ratio than QLogic, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Hewlett Packard Enterprise has a beta of 2.74, meaning that its share price is 174% more volatile than the S&P 500. Comparatively, QLogic has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.
Hewlett Packard Enterprise beats QLogic on 9 of the 12 factors compared between the two stocks.
Hewlett Packard Enterprise Company Profile
Hewlett Packard Enterprise Company is a provider of technology solutions. The Company’s segments include: Enterprise Group, Software, Financial Services and Corporate Investments. The Enterprise Group segment provides its customers with the technology infrastructure they need to optimize traditional information technology (IT). The Software segment allows its customers to automate IT operations to simplify, accelerate and secure business processes and drives the analytics that turn raw data into actionable knowledge. The Financial Services segment enables flexible IT consumption models, financial architectures and customized investment solutions for its customers. The Corporate Investments segment includes Hewlett Packard Labs and certain business incubation projects, among others.
QLogic Company Profile
QLogic Corporation (QLogic), designs and supplies server and storage networking connectivity products that provide and manage computer data communication. The Company’s products facilitate the transfer of data and enable resource sharing between servers, networks and storage. Its products are used in enterprise, managed service provider, consumer Web, and cloud service provider data centers. Its products are based primarily on Fiber Channel and Ethernet technologies and are used in connection with storage networks, data networks and converged networks. Storage networks are used to provide access to storage across enterprise environments. Fibre Channel is a technology for enterprise storage networking. Data networks are used to provide workstation-to-server, server-to-server, and server-to-storage connectivity using Ethernet. Converged networks are designed to address the data center by consolidating and unifying storage and data networks, using high-speed Ethernet.
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