Critical Survey: Dell Technologies (DELL) and Its Competitors

Dell Technologies (NYSE:DELL) is one of 82 publicly-traded companies in the “Technology Hardware, Storage & Peripherals” industry, but how does it weigh in compared to its competitors? We will compare Dell Technologies to similar companies based on the strength of its earnings, analyst recommendations, profitability, institutional ownership, valuation, dividends and risk.

Analyst Recommendations

This is a summary of current recommendations for Dell Technologies and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dell Technologies	1	10	20	1	2.66
Dell Technologies Competitors	1051	4266	7598	358	2.55

Dell Technologies presently has a consensus target price of $494.67, suggesting a potential upside of 9.03%. As a group, “Technology Hardware, Storage & Peripherals” companies have a potential upside of 27.42%. Given Dell Technologies’ competitors higher possible upside, analysts clearly believe Dell Technologies has less favorable growth aspects than its competitors.

Dividends

Dell Technologies pays an annual dividend of $2.52 per share and has a dividend yield of 0.6%. Dell Technologies pays out 20.0% of its earnings in the form of a dividend. As a group, “Technology Hardware, Storage & Peripherals” companies pay a dividend yield of 3.6% and pay out 42.6% of their earnings in the form of a dividend. Dell Technologies has raised its dividend for 3 consecutive years.

Profitability

This table compares Dell Technologies and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dell Technologies	6.28%	-366.90%	8.65%
Dell Technologies Competitors	-609.25%	-15.44%	3.05%

Insider & Institutional Ownership

76.4% of Dell Technologies shares are owned by institutional investors. Comparatively, 51.3% of shares of all “Technology Hardware, Storage & Peripherals” companies are owned by institutional investors. 41.5% of Dell Technologies shares are owned by insiders. Comparatively, 10.5% of shares of all “Technology Hardware, Storage & Peripherals” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Dell Technologies has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Dell Technologies’ competitors have a beta of 1.56, meaning that their average share price is 56% more volatile than the S&P 500.

Earnings and Valuation

This table compares Dell Technologies and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Dell Technologies	$113.54 billion	$5.94 billion	36.04
Dell Technologies Competitors	$23.06 billion	$3.17 billion	13.05

Dell Technologies has higher revenue and earnings than its competitors. Dell Technologies is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Dell Technologies beats its competitors on 11 of the 15 factors compared.

Dell Technologies Company Profile

Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. The company operates through two segments, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The ISG segment provides modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage; and general-purpose and AI-optimized servers. This segment also offers networking products and services comprising wide area network infrastructure, data center and edge networking switches, and cables and optics that help its business customers to transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes; software and peripherals; and consulting, support, and deployment services. The CSG segment provides desktops, workstations, and notebooks; displays, docking stations, keyboards, mice, webcam, and audio devices; and third-party software and peripherals, as well as configuration, support and deployment, and extended warranty services. It is involved in cybersecurity technology-driven security solutions to prevent security breaches, detect malicious activity, respond rapidly when a security breach occurs, and identify emerging threats; originating, collecting, and servicing customer financing arrangements; and the resale of VMware products and services. The company serves enterprises, public institutions, and small and medium-sized businesses through its direct sales channel, value-added resellers, system integrators, distributors, and retailers. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in August 2016. Dell Technologies Inc. was founded in 1984 and is headquartered in Round Rock, Texas.