TDK (OTCMKTS:TTDKY) versus Hewlett Packard Enterprise (NYSE:HPE) Financial Survey

Hewlett Packard Enterprise (NYSE:HPE) and TDK (OTCMKTS:TTDKY) are both large-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Profitability

This table compares Hewlett Packard Enterprise and TDK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hewlett Packard Enterprise	6.60%	15.50%	5.00%
TDK	7.87%	9.15%	4.48%

Analyst Ratings

This is a summary of current ratings for Hewlett Packard Enterprise and TDK, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hewlett Packard Enterprise	0	6	12	1	2.74
TDK	0	1	0	1	3.00

Hewlett Packard Enterprise currently has a consensus price target of $69.18, suggesting a potential upside of 8.96%. Given Hewlett Packard Enterprise’s higher possible upside, equities research analysts clearly believe Hewlett Packard Enterprise is more favorable than TDK.

Insider and Institutional Ownership

80.8% of Hewlett Packard Enterprise shares are owned by institutional investors. 0.4% of Hewlett Packard Enterprise shares are owned by insiders. Comparatively, 0.0% of TDK shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Hewlett Packard Enterprise and TDK”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hewlett Packard Enterprise	$34.30 billion	2.46	$57.00 million	$1.92	33.07
TDK	$16.64 billion	2.18	$1.29 billion	$0.68	27.47

TDK has lower revenue, but higher earnings than Hewlett Packard Enterprise. TDK is trading at a lower price-to-earnings ratio than Hewlett Packard Enterprise, indicating that it is currently the more affordable of the two stocks.

Dividends

Hewlett Packard Enterprise pays an annual dividend of $0.57 per share and has a dividend yield of 0.9%. TDK pays an annual dividend of $0.15 per share and has a dividend yield of 0.8%. Hewlett Packard Enterprise pays out 29.7% of its earnings in the form of a dividend. TDK pays out 22.1% 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. Hewlett Packard Enterprise has increased its dividend for 2 consecutive years. Hewlett Packard Enterprise is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Hewlett Packard Enterprise has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, TDK has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.

Summary

Hewlett Packard Enterprise beats TDK on 13 of the 17 factors compared between the two stocks.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise Company provides solutions that allow customers to capture, analyze, and act upon data seamlessly in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It operates in six segments: Compute, HPC & AI, Storage, Intelligent Edge, Financial Services, and Corporate Investments and Other. The company offers general purpose servers for multi-workload computing and workload-optimized servers; HPE ProLiant rack and tower servers; HPE Synergy; HPE Alletra, HPE GreenLake, Zerto, HPE InfoSight, and HPE CloudPhysics storage products; HPE Cray EX, HPE Cray XD, and converged edge systems; and HPE Superdome Flex, HPE Nonstop, and HPE Integrity products. It also provides HPE Aruba products that includes hardware products, such as Wi-Fi access points, switches, and gateways; HPE Aruba Networking software and services comprising cloud-based management, network management and access control, analytics and assurance, software-defined wide-area networking, network security, analytics and assurance, and location services software; and professional and support services, as well as as-a-service and consumption models. In addition, the company offers leasing, financing, IT consumption, and utility programs and asset management services for customers to facilitate technology deployment models and the acquisition of various IT solutions, including hardware, software, and services from Hewlett Packard Enterprise and others; consultative-led services; HPE Ezmeral Container Platform; HPE Ezmeral Software Container Platform and HPE Ezmeral Software Data Fabric; OpsRamp; and Hewlett Packard Labs. It serves commercial and large enterprise groups, such as business and public sector enterprises; and through various partners comprising resellers, distribution partners, original equipment manufacturers, independent software vendors, systems integrators, and advisory firms. The company was founded in 1939 and is headquartered in Spring, Texas.

About TDK

TDK Corporation, together with its subsidiaries, engages in manufacture and sale of electronic components in Japan, Europe, China, Asia, the Americas, and internationally. The company operates through Passive Components, Sensor Application Products, Magnetic Application Products, Energy Application Products, and Other segments. The Passive Components segment offers ceramic capacitors, aluminum electrolytic capacitors, film capacitors, high-frequency components, piezoelectric materials, and circuit protection components, as well as inductive devices, including ferrite cores, coils, and transformers. The Sensor Application Products segment provides temperature and pressure, magnetic, and MEMS sensors. The Magnetic Application Products segment offers hard disk drives (HDD) heads, HDD suspension assemblies, and magnets. The Energy Application Products segment provides energy devices comprising rechargeable batteries, and power supplies. The Other segment provides mechatronics production equipment and camera module micro actuators for smartphones and other products. The company also engages in engages in insurance and real estate agency businesses. The company was formerly known as Tokyo Denki Kagaku Kogyo K.K. and changed its name to TDK Corporation in 1983. TDK Corporation was founded in 1935 and is headquartered in Tokyo, Japan.