Xerox vs HP Which Is More Favorable?

Xerox and HP are two well-known players in the technology industry, both offering a range of products and services including printers, copiers, and imaging solutions. The two companies have been competitors for many years, with each vying for market share and customer loyalty. Investors interested in the technology sector often compare the stocks of Xerox and HP to determine which may be a better investment opportunity. This analysis involves evaluating factors such as financial performance, market trends, and competitive positioning.

Xerox or HP?

When comparing Xerox 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 Xerox 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. Xerox has a dividend yield of 11.17%, while HP has a dividend yield of 3.66%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Xerox reports a 5-year dividend growth of 0.00% year and a payout ratio of -10.35%. On the other hand, HP reports a 5-year dividend growth of 12.96% year and a payout ratio of 37.71%.

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 Xerox P/E ratio at -0.82 and HP's P/E ratio at 12.97. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Xerox P/B ratio is 0.85 while HP's P/B ratio is -26.49.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Xerox has seen a 5-year revenue growth of 0.17%, while HP's is 0.50%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Xerox's ROE at -59.05% and HP's ROE at -226.67%.

Retail Investors:

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