Hewlett Packard Enterprise (NYSE: HPE) and Silicom (NASDAQ:SILC) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.
This table compares Hewlett Packard Enterprise and Silicom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hewlett Packard Enterprise||9.36%||8.25%||3.27%|
This is a summary of current ratings and recommmendations for Hewlett Packard Enterprise and Silicom, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hewlett Packard Enterprise||2||13||9||0||2.29|
Hewlett Packard Enterprise currently has a consensus target price of $17.29, indicating a potential upside of 8.37%. Silicom has a consensus target price of $50.00, indicating a potential upside of 25.03%. Given Silicom’s stronger consensus rating and higher possible upside, analysts clearly believe Silicom is more favorable than Hewlett Packard Enterprise.
Hewlett Packard Enterprise pays an annual dividend of $0.45 per share and has a dividend yield of 2.8%. Silicom does not pay a dividend. Hewlett Packard Enterprise pays out 46.9% of its earnings in the form of a dividend.
Volatility & Risk
Hewlett Packard Enterprise has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500. Comparatively, Silicom has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.
Institutional and Insider Ownership
78.8% of Hewlett Packard Enterprise shares are held by institutional investors. Comparatively, 30.1% of Silicom shares are held by institutional investors. 1.2% of Hewlett Packard Enterprise shares are held by company insiders. Comparatively, 25.4% of Silicom shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Hewlett Packard Enterprise and Silicom’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hewlett Packard Enterprise||$28.87 billion||0.84||$344.00 million||$0.96||16.61|
|Silicom||$125.69 million||2.40||$21.71 million||N/A||N/A|
Hewlett Packard Enterprise has higher revenue and earnings than Silicom.
Silicom beats Hewlett Packard Enterprise on 9 of the 15 factors compared between the two stocks.
Hewlett Packard Enterprise Company Profile
Hewlett Packard Enterprise Company provides technology solutions to business and public sector enterprises. It operates through Enterprise Group, Financial Services, and Corporate Investments segments. The Enterprise Group segment offers industry standard servers and mission-critical servers to address the array of its customers' computing needs; converged storage solutions, including 3PAR StoreServ, StoreOnce, and StoreVirtual products, as well as traditional storage solutions, such as tape, storage networking, and legacy external disk products for enterprise and small- and medium-size business; software-defined switches, routers, wireless local area network equipment, network virtualization equipment, security software, location-based services, and network management products; and data center care, proactive care, and technology consulting services, as well as Aruba Services, and communications and media solutions. The Financial Services segment provides leasing, financing, IT consumption and utility programs, and asset management services. The Corporate Investments segment is involved in HP labs and certain cloud-related incubation activities. The company markets and sells its products through resellers, distribution partners, original equipment manufacturers, independent software vendors, systems integrators, and advisory firms. It has a collaboration agreement with ARM and SUSE, as well as the University of Edinburgh, the University of Bristol, and the University of Leicester. Hewlett Packard Enterprise Company is headquartered in Palo Alto, California.
Silicom Company Profile
Silicom Ltd., together with its subsidiaries, designs, manufactures, markets, and supports networking and data infrastructure solutions for a range of servers, server based systems, and communications devices in North America, Europe, and the Asia Pacific. It offers server network interface cards with and without bypass for the server networking industry. The company also provides intelligent and programmable cards, including redirector and switching cards; encryption and data compression hardware acceleration cards; full field programmable gate array (FPGA) based packet processing cards; and compute blades. In addition, it offers customer premise equipment (CPE), vCPE or edge networking devices products for SD-WAN and NFV deployments; networking targeted appliances; and bypass switches and intelligent bypass switches. The company sells its products primarily to original equipment manufacturers, and cloud and telco companies. Silicom Ltd. was founded in 1987 and is headquartered in Kfar Sava, Israel.
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