Dell Technologies Inc. (DELL) vs HP Inc. (HPQ)

Dell Technologies Inc. and HP Inc. are both Computer Hardware companies. Dell Technologies Inc. is the larger, with a market value of $348.7B against $28.0B — 12.5× the size. HP Inc. trades at the lower P/E: 11.8× against 32.4×. Dell Technologies Inc. grew revenue faster over the last twelve months: 49.0% against 8.14%. Dell Technologies Inc. has the higher net margin (7.53% vs 4.14%) and the higher return on invested capital (68.6% vs 55.8%). Both pay a dividend; HP Inc. yields more (3.91% vs 1.75%). Across the 22 metrics below, HP Inc. leads on 12 and Dell Technologies Inc. on 10.

Valuation

Metric DELL HPQ Computer Hardware median
P/E 32.42 11.80 20.64
P/S 2.40 0.49 2.95
P/B n/m n/m 2.78
Price to free cash flow 42.41 7.41 25.64
EV/EBITDA 21.83 7.81 20.51
EV/Sales 2.50 0.55 3.48
Earnings yield 3.08% 8.47% (4.08%)
Free cash flow yield 2.36% 13.50% (2.90%)

Profitability

Metric DELL HPQ Computer Hardware median
Gross margin 19.80% 19.87% 37.84%
Operating margin 9.43% 5.45% (0.80%)
Net margin 7.53% 4.14% (14.15%)
Free cash flow margin 5.66% 6.56% 0.00%
Return on equity (542.71%) (493.66%) (2.10%)
Return on assets 10.51% 5.73% (0.42%)
Return on invested capital 68.58% 55.83% 0.00%

Growth

Metric DELL HPQ Computer Hardware median
Revenue growth (TTM) 49.03% 8.14% 27.21%
EPS growth (last fiscal year) 36.05% (5.69%) —
Revenue growth, 5-year CAGR 5.55% (0.48%) 0.81%
Net income growth, 5-year CAGR 12.80% (2.12%) 0.00%

Health

Metric DELL HPQ Computer Hardware median
Debt to equity (18.21) (85.52) 0.00
Current ratio 0.96 0.79 2.76
Net debt to EBITDA 1.07 1.25 0.46

Dividend

Metric DELL HPQ Computer Hardware median
Dividend yield 1.75% 3.91% 2.47%
Payout ratio 0.54 0.45 0.00

Size

Metric DELL HPQ Computer Hardware median
Market cap 348.74b 27.98b 462.08m

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