HP (NYSE: HPQ) and Electronics for Imaging (NASDAQ:EFII) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.
HP pays an annual dividend of $0.53 per share and has a dividend yield of 2.7%. Electronics for Imaging does not pay a dividend. HP pays out 38.4% of its earnings in the form of a dividend.
This is a summary of current ratings for HP and Electronics for Imaging, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Electronics for Imaging||1||2||10||0||2.69|
HP currently has a consensus price target of $20.58, indicating a potential upside of 4.97%. Electronics for Imaging has a consensus price target of $51.00, indicating a potential upside of 23.25%. Given Electronics for Imaging’s stronger consensus rating and higher probable upside, analysts plainly believe Electronics for Imaging is more favorable than HP.
This table compares HP and Electronics for Imaging’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Electronics for Imaging||4.70%||5.58%||3.07%|
Risk and Volatility
HP has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500. Comparatively, Electronics for Imaging has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.
Valuation & Earnings
This table compares HP and Electronics for Imaging’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|HP||$50.64 billion||0.65||$4.20 billion||$1.38||14.20|
|Electronics for Imaging||$988.02 million||1.94||$121.81 million||$0.98||42.22|
HP has higher revenue and earnings than Electronics for Imaging. HP is trading at a lower price-to-earnings ratio than Electronics for Imaging, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
79.2% of HP shares are owned by institutional investors. 0.6% of HP shares are owned by insiders. Comparatively, 1.9% of Electronics for Imaging shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
HP Company Profile
HP Inc. is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses, and enterprises, including customers in the government, health and education sectors. The Company provides personal computing and other access devices, imaging and printing products, and related technologies, solutions and services. Its segments include Personal Systems, Printing and Corporate Investments. The Personal Systems segment provides Commercial personal computers (PCs), Consumer PCs, workstations, thin clients, Commercial tablets and mobility devices, retail point-of-sale systems, displays and other accessories, software, support and services for the commercial and consumer markets. The Printing segment provides consumer and commercial printer hardware, supplies, media, solutions and services, as well as scanning devices. The Corporate Investments segment includes the operations of HP Labs and certain business incubation projects.
Electronics for Imaging Company Profile
Electronics For Imaging, Inc. is engaged in digital printing, focused on the transformation of the printing, packaging, ceramic tile decoration, and textile industries from the use of traditional analog-based printing to digital on-demand printing. It operates through three segments. The Industrial Inkjet segment consists of its VUTEk and Matan super-wide and wide format display graphics, Reggiani textile, Jetrion label and packaging and Cretaprint ceramic tile decoration and construction material industrial digital inkjet printers; ceramic, water-based, and thermoforming ink, and digital inkjet printer parts, and professional services. The Productivity Software segment consists of a software suite that enables automated end-to-end business and production workflows for the print and packaging industry. The Fiery segment consists of digital front ends that transform digital copiers and printers into networked printing devices for the office, industrial and commercial printing markets.
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