HP Inc. (HPQ) vs Western Digital Corporation (WDC)

HP Inc. and Western Digital Corporation are both Computer Hardware companies. Western Digital Corporation is the larger, with a market value of $165.5B against $28.0B — 5.9× the size. HP Inc. trades at the lower P/E: 11.8× against 16.9×. Western Digital Corporation grew revenue faster over the last twelve months: 35.7% against 8.14%. Western Digital Corporation has the higher net margin (73.0% vs 4.14%) and the lower return on invested capital (33.4% vs 55.8%). Both pay a dividend; HP Inc. yields more (3.91% vs 0.03%). Across the 22 metrics below, HP Inc. leads on 11 and Western Digital Corporation on 11.

Valuation

Metric HPQ WDC Computer Hardware median
P/E 11.80 16.89 20.64
P/S 0.49 12.18 2.95
P/B n/m 17.75 2.78
Price to free cash flow 7.41 44.82 25.64
EV/EBITDA 7.81 32.99 20.51
EV/Sales 0.55 12.33 3.48
Earnings yield 8.47% 5.92% (4.08%)
Free cash flow yield 13.50% 2.23% (2.90%)

Profitability

Metric HPQ WDC Computer Hardware median
Gross margin 19.87% 48.85% 37.84%
Operating margin 5.45% 34.47% (0.80%)
Net margin 4.14% 72.95% (14.15%)
Free cash flow margin 6.56% 27.18% 0.00%
Return on equity (493.66%) 132.97% (2.10%)
Return on assets 5.73% 67.65% (0.42%)
Return on invested capital 55.83% 33.38% 0.00%

Growth

Metric HPQ WDC Computer Hardware median
Revenue growth (TTM) 8.14% 35.70% 27.21%
EPS growth (last fiscal year) (5.69%) 373.29% —
Revenue growth, 5-year CAGR (0.48%) (5.26%) 0.81%
Net income growth, 5-year CAGR (2.12%) 62.92% 0.00%

Health

Metric HPQ WDC Computer Hardware median
Debt to equity (85.52) 0.12 0.00
Current ratio 0.79 1.33 2.76
Net debt to EBITDA 1.25 (0.11) 0.46

Dividend

Metric HPQ WDC Computer Hardware median
Dividend yield 3.91% 0.03% 2.47%
Payout ratio 0.45 0.00 0.00

Size

Metric HPQ WDC Computer Hardware median
Market cap 27.98b 165.48b 462.08m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack