HP vs NetApp Which Outperforms?

HP and NetApp are two prominent players in the tech industry, with both companies offering a range of products and services in the data storage and networking sector. Investors often compare the performance of these two companies by looking at their stock prices. HP, known for its diverse portfolio of hardware and software solutions, competes with NetApp, a specialist in storage and data management. Understanding the financial performance and market trends of these companies can help investors make informed decisions about their stock investments.

HP or NetApp?

When comparing HP and NetApp, 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 HP and NetApp.

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. HP has a dividend yield of 3.16%, while NetApp has a dividend yield of 1.68%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. HP reports a 5-year dividend growth of 12.96% year and a payout ratio of 38.74%. On the other hand, NetApp reports a 5-year dividend growth of 10.76% year and a payout ratio of 36.49%.

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 HP P/E ratio at 12.07 and NetApp's P/E ratio at 21.48. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. HP P/B ratio is 11.32 while NetApp's P/B ratio is 27.72.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, HP has seen a 5-year revenue growth of 0.50%, while NetApp's is 0.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HP's ROE at -1122.35% and NetApp's ROE at 116.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $34.90 for HP and $120.62 for NetApp. Over the past year, HP's prices ranged from $27.43 to $39.80, with a yearly change of 45.10%. NetApp's prices fluctuated between $83.62 and $135.45, with a yearly change of 61.98%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.