Acer vs HP Which Offers More Value?

Acer and HP are two leading companies in the technology industry, both renowned for their innovative products and strong market presence. As competitors in the computer hardware and electronics market, investors often compare and contrast the performance of their respective stocks. Both Acer and HP have seen fluctuations in their stock prices due to various factors such as product releases, market trends, and economic conditions. This comparison aims to analyze the strengths and weaknesses of Acer and HP stocks to provide insight for potential investors.

Acer or HP?

When comparing Acer and HP, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Acer and HP.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Acer has a dividend yield of 8.68%, while HP has a dividend yield of 3.23%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Acer reports a 5-year dividend growth of 33.78% year and a payout ratio of 0.00%. On the other hand, HP reports a 5-year dividend growth of 12.96% year and a payout ratio of 38.74%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Acer P/E ratio at 21.63 and HP's P/E ratio at 11.94. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Acer P/B ratio is 1.47 while HP's P/B ratio is 11.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Acer has seen a 5-year revenue growth of 0.00%, while HP's is 0.50%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Acer 's ROE at 6.87% and HP's ROE at -1122.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$36.85 for Acer and $34.34 for HP. Over the past year, Acer 's prices ranged from NT$36.70 to NT$60.50, with a yearly change of 64.85%. HP's prices fluctuated between $27.43 and $39.80, with a yearly change of 45.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.