Ciena Corporation (CIEN) vs Hewlett Packard Enterprise Company (HPE)

Ciena Corporation and Hewlett Packard Enterprise Company are both Communication Equipment companies. Hewlett Packard Enterprise Company is the larger, with a market value of $86.2B against $51.7B — 1.7× the size. Hewlett Packard Enterprise Company trades at the lower P/E: 31.3× against 77.3×. Ciena Corporation grew revenue faster over the last twelve months: 32.6% against 26.6%. Ciena Corporation has the higher net margin (10.9% vs 6.39%) and the higher return on invested capital (12.6% vs 4.31%). Across the 22 metrics below, Ciena Corporation leads on 12 and Hewlett Packard Enterprise Company on 10.

Valuation

Metric CIEN HPE Communication Equipment median
P/E 77.25 31.31 33.61
P/S 8.42 2.01 2.16
P/B 16.59 3.16 2.40
Price to free cash flow 62.26 18.40 25.02
EV/EBITDA 56.14 12.34 13.78
EV/Sales 8.52 2.27 2.27
Earnings yield 1.29% 3.19% (0.65%)
Free cash flow yield 1.61% 5.43% 1.61%

Profitability

Metric CIEN HPE Communication Equipment median
Gross margin 44.07% 36.73% 39.47%
Operating margin 12.27% 6.21% 2.39%
Net margin 10.87% 6.39% (0.74%)
Free cash flow margin 13.53% 10.91% 1.39%
Return on equity 22.40% 10.48% (1.91%)
Return on assets 9.52% 3.32% (0.20%)
Return on invested capital 12.63% 4.31% 0.72%

Growth

Metric CIEN HPE Communication Equipment median
Revenue growth (TTM) 32.57% 26.59% 11.48%
EPS growth (last fiscal year) 46.55% (102.07%) —
Revenue growth, 5-year CAGR 6.19% 4.91% 4.92%
Net income growth, 5-year CAGR (19.34%) 0.00% 0.00%

Health

Metric CIEN HPE Communication Equipment median
Debt to equity 1.06 0.65 0.06
Current ratio 3.80 1.11 2.01
Net debt to EBITDA 0.67 3.06 0.67

Dividend

Metric CIEN HPE Communication Equipment median
Dividend yield — 3.34% 2.63%
Payout ratio 0.00 0.58 0.00

Size

Metric CIEN HPE Communication Equipment median
Market cap 51.73b 86.15b 563.45m

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