Financial Comparison: Hewlett Packard Enterprise (NYSE:HPE) and Wayside Technology Group (NYSE:WSTG)

Hewlett Packard Enterprise (NYSE:HPE) and Wayside Technology Group (NASDAQ:WSTG) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Earnings and Valuation

This table compares Hewlett Packard Enterprise and Wayside Technology Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hewlett Packard Enterprise $29.14 billion 0.42 $1.05 billion $1.77 5.41
Wayside Technology Group $208.76 million 0.50 $6.79 million N/A N/A

Hewlett Packard Enterprise has higher revenue and earnings than Wayside Technology Group.

Risk and Volatility

Hewlett Packard Enterprise has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, Wayside Technology Group has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Profitability

This table compares Hewlett Packard Enterprise and Wayside Technology Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hewlett Packard Enterprise -0.13% 12.35% 4.03%
Wayside Technology Group 2.72% 16.97% 6.40%

Analyst Ratings

This is a breakdown of recent ratings for Hewlett Packard Enterprise and Wayside Technology Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hewlett Packard Enterprise 2 14 4 0 2.10
Wayside Technology Group 0 0 0 0 N/A

Hewlett Packard Enterprise presently has a consensus target price of $12.78, indicating a potential upside of 33.35%. Given Hewlett Packard Enterprise’s higher probable upside, research analysts clearly believe Hewlett Packard Enterprise is more favorable than Wayside Technology Group.

Dividends

Hewlett Packard Enterprise pays an annual dividend of $0.48 per share and has a dividend yield of 5.0%. Wayside Technology Group pays an annual dividend of $0.68 per share and has a dividend yield of 2.8%. Hewlett Packard Enterprise pays out 27.1% of its earnings in the form of a dividend. Hewlett Packard Enterprise has increased its dividend for 3 consecutive years. Hewlett Packard Enterprise is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

79.8% of Hewlett Packard Enterprise shares are owned by institutional investors. Comparatively, 42.5% of Wayside Technology Group shares are owned by institutional investors. 0.4% of Hewlett Packard Enterprise shares are owned by company insiders. Comparatively, 7.6% of Wayside Technology Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Hewlett Packard Enterprise beats Wayside Technology Group on 8 of the 15 factors compared between the two stocks.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise Company operates as a technology company. The company operates through four segments: Hybrid IT, Intelligent Edge, Financial Services, and Corporate Investments. The Hybrid IT segment provides industry standard servers for multi-workload computing; mission-critical servers; converged storage solutions, including all-flash arrays and hybrid storage solutions; and traditional storage solutions comprising tape, storage networking, and disk products, such as HPE MSA and HPE XP. It also offers data center networking products, such as top-of-rack switches, core switches, and open networking switches; and operational services, advisory and professional services, and communications and media solutions. The Intelligent Edge segment provides solutions for mobility and Internet of things, as well as enterprise networking and security solutions for businesses campus and branch environments under the Aruba brand. This segment also offers wired and wireless local area network products, such as Wi-Fi access points, switches, routers; and software products, including network management, network access control, analytics and assurance, and location services software. The Financial Services segment offers various flexible investment solutions, which comprise leasing, financing, IT consumption, and utility programs and asset management services for customers to enable the creation of unique technology deployment models and acquire complete IT solutions. The Corporate Investments segment is involved in Hewlett Packard labs and various business incubation activities. The company serves small and medium-sized businesses and large enterprises. It has strategic alliance with ABB Ltd. Hewlett Packard Enterprise Company was founded in 1939 and is headquartered in Palo Alto, California.

About Wayside Technology Group

Wayside Technology Group, Inc. operates as an information technology channel company worldwide. It operates in two segments, Lifeboat Distribution and TechXtend. The company distributes technical software and hardware to corporate and value added resellers, consultants, and systems integrators; and software, hardware, and services for corporations, government organizations, and academic institutions. It also resells computer software and hardware developed by others, as well as provides technical services to end user customers in the United States and Canada. In addition, the company offers a line of products from various publishers of software; and tools for virtualization/cloud computing, security, networking, storage and infrastructure management, application lifecycle management, and other technically sophisticated domains, as well as computer hardware. Wayside Technology Group, Inc. markets its products through own Websites, local and online seminars, Webinars, and social media, as well as direct email and printed materials. The company was formerly known as Programmer's Paradise, Inc. and changed its name to Wayside Technology Group, Inc. in August 2006. Wayside Technology Group, Inc. was founded in 1982 and is headquartered in Eatontown, New Jersey.

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