HP vs Quest Which Is More Promising?

HP Inc. and Quest Software are two major players in the technology industry, but their stocks are often compared and analyzed by investors looking to make strategic investments. HP, a well-known hardware and software company, has a long history of innovation and market leadership. On the other hand, Quest, a software solution provider, has gained popularity for its unique offerings and strong performance in the market. In this comparison, we will delve into the key differences and similarities between HP and Quest stocks to help investors make informed decisions.

HP or Quest?

When comparing HP and Quest, 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 Quest.

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 Quest has a dividend yield of 3.83%. 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, Quest reports a 5-year dividend growth of 58.49% year and a payout ratio of 0.00%.

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 Quest's P/E ratio at 13.78. 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 Quest's P/B ratio is 2.40.

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 Quest's is -0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HP's ROE at -226.67% and Quest's ROE at 17.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $36.80 for HP and €5.70 for Quest. Over the past year, HP's prices ranged from $27.43 to $39.52, with a yearly change of 44.08%. Quest's prices fluctuated between €4.60 and €6.25, with a yearly change of 35.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.