HP vs Quarterhill Which Offers More Value?

HP Inc. and Quarterhill Inc. are two companies in the technology sector that are often compared by investors. HP Inc. is a well-established multinational company known for its range of computer hardware and software products. Quarterhill Inc., on the other hand, is a smaller company that focuses on acquiring and managing technology companies. Both companies have their own strengths and weaknesses, making them attractive options for investors looking to diversify their portfolios within the technology industry. In this analysis, we will compare the stock performance of HP Inc. and Quarterhill Inc. to determine which may be the better investment option.

HP or Quarterhill?

When comparing HP and Quarterhill, 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 Quarterhill.

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 3.66%, while Quarterhill has a dividend yield of -%. 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 37.71%. On the other hand, Quarterhill reports a 5-year dividend growth of -20.40% year and a payout ratio of -0.19%.

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 12.97 and Quarterhill's P/E ratio at -6.66. 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 -26.49 while Quarterhill's P/B ratio is 0.97.

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 Quarterhill's is 0.90%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HP's ROE at -226.67% and Quarterhill's ROE at -14.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $36.80 for HP and $1.13 for Quarterhill. Over the past year, HP's prices ranged from $27.43 to $39.52, with a yearly change of 44.08%. Quarterhill's prices fluctuated between $1.07 and $1.61, with a yearly change of 50.47%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.