HP vs Xerox Which Is More Attractive?

HP Inc. and Xerox Corporation are two prominent players in the technology and printing industries. Both companies have a long-standing history of innovation and product development. However, they have taken different strategic approaches in recent years, leading to differing stock performances. HP has focused on diversifying its product offerings and expanding its market reach, while Xerox has undergone significant restructuring and cost-cutting efforts. Investors may weigh these factors when deciding between HP and Xerox stocks for their portfolios.

HP or Xerox?

When comparing HP and Xerox, 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 Xerox.

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 Xerox has a dividend yield of 11.17%. 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, Xerox reports a 5-year dividend growth of 0.00% year and a payout ratio of -10.35%.

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 Xerox's P/E ratio at -0.82. 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 Xerox's P/B ratio is 0.85.

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 Xerox's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HP's ROE at -226.67% and Xerox's ROE at -59.05%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $36.80 for HP and $8.82 for Xerox. Over the past year, HP's prices ranged from $27.43 to $39.52, with a yearly change of 44.08%. Xerox's prices fluctuated between $8.02 and $19.78, with a yearly change of 146.63%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.