HP Inc. (HPQ) vs Super Micro Computer, Inc. (SMCI)

HP Inc. and Super Micro Computer, Inc. are both Computer Hardware companies. HP Inc. is the larger, with a market value of $27.8B against $23.1B — 1.2× the size. Super Micro Computer, Inc. trades at the lower P/E: 8.8× against 11.3×. Super Micro Computer, Inc. grew revenue faster over the last twelve months: 77.8% against 8.14%. Super Micro Computer, Inc. has the higher net margin (5.71% vs 4.14%) and the lower return on invested capital (11.0% vs 55.8%). Across the 20 metrics below, Super Micro Computer, Inc. leads on 14 and HP Inc. on 6.

Valuation

Metric HPQ SMCI Computer Hardware median
P/E 11.32 8.81 17.86
P/S 0.47 0.49 3.05
P/B n/m 1.86 1.97
Price to free cash flow 7.11 n/m 25.50
EV/EBITDA 7.53 7.01 14.90
EV/Sales 0.53 0.52 2.22
Earnings yield 8.83% 11.35% (6.03%)
Free cash flow yield 14.07% (36.56%) (4.32%)

Profitability

Metric HPQ SMCI Computer Hardware median
Gross margin 19.87% 10.82% 37.84%
Operating margin 5.45% 7.09% (0.80%)
Net margin 4.14% 5.71% (14.15%)
Free cash flow margin 6.56% (17.81%) (0.50%)
Return on equity (493.66%) 26.95% (2.10%)
Return on assets 5.73% 10.15% (0.42%)
Return on invested capital 55.83% 11.04% 0.00%

Growth

Metric HPQ SMCI Computer Hardware median
Revenue growth (TTM) 8.14% 77.79% 27.21%
EPS growth (last fiscal year) (5.69%) 94.05% 33.11%
Revenue growth, 5-year CAGR (0.48%) 61.48% 1.14%
Net income growth, 5-year CAGR (2.12%) 81.94% 0.00%

Health

Metric HPQ SMCI Computer Hardware median
Debt to equity (85.52) 0.60 0.00
Current ratio 0.79 3.87 2.76
Net debt to EBITDA 1.25 0.42 0.42

Dividend

Metric HPQ SMCI Computer Hardware median
Dividend yield 4.00% — 1.15%
Payout ratio 0.46 — 0.26

Size

Metric HPQ SMCI Computer Hardware median
Market cap 27.82b 23.05b 397.52m

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