HP Inc. (HPQ) vs Seagate Technology Holdings PLC (STX)

HP Inc. and Seagate Technology Holdings PLC are both Computer Hardware companies. Seagate Technology Holdings PLC is the larger, with a market value of $209.2B against $28.0B — 7.5× the size. HP Inc. trades at the lower P/E: 11.8× against 63.4×. Seagate Technology Holdings PLC grew revenue faster over the last twelve months: 34.1% against 8.14%. Seagate Technology Holdings PLC has the higher net margin (26.1% vs 4.14%) and the higher return on invested capital (63.5% vs 55.8%). Both pay a dividend; HP Inc. yields more (3.91% vs 3.18%). Across the 22 metrics below, Seagate Technology Holdings PLC leads on 13 and HP Inc. on 9.

Valuation

Metric HPQ STX Computer Hardware median
P/E 11.80 63.40 20.64
P/S 0.49 16.46 2.95
P/B n/m 92.66 2.78
Price to free cash flow 7.41 64.67 25.64
EV/EBITDA 7.81 46.37 20.51
EV/Sales 0.55 16.62 3.48
Earnings yield 8.47% 1.58% (4.08%)
Free cash flow yield 13.50% 1.55% (2.90%)

Profitability

Metric HPQ STX Computer Hardware median
Gross margin 19.87% 45.58% 37.84%
Operating margin 5.45% 33.57% (0.80%)
Net margin 4.14% 26.11% (14.15%)
Free cash flow margin 6.56% 25.46% 0.00%
Return on equity (493.66%) 371.53% (2.10%)
Return on assets 5.73% 35.39% (0.42%)
Return on invested capital 55.83% 63.52% 0.00%

Growth

Metric HPQ STX Computer Hardware median
Revenue growth (TTM) 8.14% 34.06% 27.21%
EPS growth (last fiscal year) (5.69%) 105.32% —
Revenue growth, 5-year CAGR (0.48%) 2.69% 0.81%
Net income growth, 5-year CAGR (2.12%) 19.36% 0.00%

Health

Metric HPQ STX Computer Hardware median
Debt to equity (85.52) 1.65 0.00
Current ratio 0.79 1.67 2.76
Net debt to EBITDA 1.25 0.43 0.46

Dividend

Metric HPQ STX Computer Hardware median
Dividend yield 3.91% 3.18% 2.47%
Payout ratio 0.45 0.54 0.00

Size

Metric HPQ STX Computer Hardware median
Market cap 27.98b 209.18b 462.08m

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