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HPE vs. IBM: A Head-to-Head Stock Comparison

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Here’s a clear look at HPE and IBM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolHPEIBM
Company NameHewlett Packard Enterprise CompanyInternational Business Machines Corporation
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryTechnology Hardware, Storage & PeripheralsIT Services
Market Capitalization34.41 billion USD269.64 billion USD
ExchangeNYSENYSE
Listing DateOctober 19, 2015January 2, 1962
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of HPE and IBM by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

HPE vs. IBM: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolHPEIBM
5-Day Price Return6.54%0.96%
13-Week Price Return25.38%-0.23%
26-Week Price Return90.64%18.88%
52-Week Price Return25.02%27.45%
Month-to-Date Return6.19%2.59%
Year-to-Date Return22.15%31.67%
10-Day Avg. Volume22.88M6.04M
3-Month Avg. Volume20.31M4.74M
3-Month Volatility26.69%26.64%
Beta1.340.67

Profitability

Return on Equity (TTM)

HPE

5.08%

Technology Hardware, Storage & Peripherals Industry

Max
56.93%
Q3
27.52%
Median
9.18%
Q1
5.14%
Min
-1.04%

HPE’s Return on Equity of 5.08% is in the lower quartile for the Technology Hardware, Storage & Peripherals industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

IBM

21.99%

IT Services Industry

Max
32.78%
Q3
19.28%
Median
13.86%
Q1
5.50%
Min
-10.00%

In the upper quartile for the IT Services industry, IBM’s Return on Equity of 21.99% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

HPE vs. IBM: A comparison of their Return on Equity (TTM) against their respective Technology Hardware, Storage & Peripherals and IT Services industry benchmarks.

Net Profit Margin (TTM)

HPE

3.77%

Technology Hardware, Storage & Peripherals Industry

Max
16.15%
Q3
7.95%
Median
4.80%
Q1
2.20%
Min
-0.29%

HPE’s Net Profit Margin of 3.77% is aligned with the median group of its peers in the Technology Hardware, Storage & Peripherals industry. This indicates its ability to convert revenue into profit is typical for the sector.

IBM

9.11%

IT Services Industry

Max
19.71%
Q3
11.01%
Median
6.66%
Q1
2.96%
Min
-6.22%

IBM’s Net Profit Margin of 9.11% is aligned with the median group of its peers in the IT Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

HPE vs. IBM: A comparison of their Net Profit Margin (TTM) against their respective Technology Hardware, Storage & Peripherals and IT Services industry benchmarks.

Operating Profit Margin (TTM)

HPE

3.91%

Technology Hardware, Storage & Peripherals Industry

Max
20.70%
Q3
10.74%
Median
6.27%
Q1
4.07%
Min
1.97%

HPE’s Operating Profit Margin of 3.91% is in the lower quartile for the Technology Hardware, Storage & Peripherals industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

IBM

9.77%

IT Services Industry

Max
22.44%
Q3
14.90%
Median
8.82%
Q1
4.91%
Min
-9.89%

IBM’s Operating Profit Margin of 9.77% is around the midpoint for the IT Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

HPE vs. IBM: A comparison of their Operating Profit Margin (TTM) against their respective Technology Hardware, Storage & Peripherals and IT Services industry benchmarks.

Profitability at a Glance

SymbolHPEIBM
Return on Equity (TTM)5.08%21.99%
Return on Assets (TTM)1.74%4.12%
Net Profit Margin (TTM)3.77%9.11%
Operating Profit Margin (TTM)3.91%9.77%
Gross Profit Margin (TTM)29.45%57.57%

Financial Strength

Current Ratio (MRQ)

HPE

0.95

Technology Hardware, Storage & Peripherals Industry

Max
3.37
Q3
2.04
Median
1.41
Q1
0.98
Min
0.11

HPE’s Current Ratio of 0.95 falls into the lower quartile for the Technology Hardware, Storage & Peripherals industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

IBM

0.91

IT Services Industry

Max
3.17
Q3
2.00
Median
1.47
Q1
1.05
Min
0.52

IBM’s Current Ratio of 0.91 falls into the lower quartile for the IT Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

HPE vs. IBM: A comparison of their Current Ratio (MRQ) against their respective Technology Hardware, Storage & Peripherals and IT Services industry benchmarks.

Debt-to-Equity Ratio (MRQ)

HPE

0.97

Technology Hardware, Storage & Peripherals Industry

Max
1.54
Q3
0.85
Median
0.32
Q1
0.11
Min
0.00

HPE’s leverage is in the upper quartile of the Technology Hardware, Storage & Peripherals industry, with a Debt-to-Equity Ratio of 0.97. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

IBM

2.33

IT Services Industry

Max
3.11
Q3
1.55
Median
0.55
Q1
0.17
Min
0.00

IBM’s leverage is in the upper quartile of the IT Services industry, with a Debt-to-Equity Ratio of 2.33. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

HPE vs. IBM: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Technology Hardware, Storage & Peripherals and IT Services industry benchmarks.

Interest Coverage Ratio (TTM)

HPE

116.71

Technology Hardware, Storage & Peripherals Industry

Max
143.63
Q3
76.01
Median
19.47
Q1
5.91
Min
-23.93

HPE’s Interest Coverage Ratio of 116.71 is in the upper quartile for the Technology Hardware, Storage & Peripherals industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

IBM

45.57

IT Services Industry

Max
129.00
Q3
56.00
Median
11.69
Q1
0.77
Min
-28.15

IBM’s Interest Coverage Ratio of 45.57 is positioned comfortably within the norm for the IT Services industry, indicating a standard and healthy capacity to cover its interest payments.

HPE vs. IBM: A comparison of their Interest Coverage Ratio (TTM) against their respective Technology Hardware, Storage & Peripherals and IT Services industry benchmarks.

Financial Strength at a Glance

SymbolHPEIBM
Current Ratio (MRQ)0.950.91
Quick Ratio (MRQ)0.690.80
Debt-to-Equity Ratio (MRQ)0.972.33
Interest Coverage Ratio (TTM)116.7145.57

Growth

Revenue Growth

HPE vs. IBM: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

HPE vs. IBM: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

HPE

2.23%

Technology Hardware, Storage & Peripherals Industry

Max
4.33%
Q3
3.29%
Median
1.76%
Q1
0.00%
Min
0.00%

HPE’s Dividend Yield of 2.23% is consistent with its peers in the Technology Hardware, Storage & Peripherals industry, providing a dividend return that is standard for its sector.

IBM

2.29%

IT Services Industry

Max
2.79%
Q3
1.76%
Median
0.58%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.29%, IBM offers a more attractive income stream than most of its peers in the IT Services industry, signaling a strong commitment to shareholder returns.

HPE vs. IBM: A comparison of their Dividend Yield (TTM) against their respective Technology Hardware, Storage & Peripherals and IT Services industry benchmarks.

Dividend Payout Ratio (TTM)

HPE

24.59%

Technology Hardware, Storage & Peripherals Industry

Max
142.87%
Q3
77.17%
Median
40.90%
Q1
3.87%
Min
0.00%

HPE’s Dividend Payout Ratio of 24.59% is within the typical range for the Technology Hardware, Storage & Peripherals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

IBM

75.57%

IT Services Industry

Max
107.85%
Q3
52.62%
Median
22.53%
Q1
0.00%
Min
0.00%

IBM’s Dividend Payout Ratio of 75.57% is in the upper quartile for the IT Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

HPE vs. IBM: A comparison of their Dividend Payout Ratio (TTM) against their respective Technology Hardware, Storage & Peripherals and IT Services industry benchmarks.

Dividend at a Glance

SymbolHPEIBM
Dividend Yield (TTM)2.23%2.29%
Dividend Payout Ratio (TTM)24.59%75.57%

Valuation

Price-to-Earnings Ratio (TTM)

HPE

27.47

Technology Hardware, Storage & Peripherals Industry

Max
43.10
Q3
28.67
Median
19.23
Q1
15.53
Min
9.46

HPE’s P/E Ratio of 27.47 is within the middle range for the Technology Hardware, Storage & Peripherals industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

IBM

46.43

IT Services Industry

Max
56.41
Q3
33.17
Median
23.17
Q1
16.18
Min
6.62

A P/E Ratio of 46.43 places IBM in the upper quartile for the IT Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

HPE vs. IBM: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Technology Hardware, Storage & Peripherals and IT Services industry benchmarks.

Price-to-Sales Ratio (TTM)

HPE

1.04

Technology Hardware, Storage & Peripherals Industry

Max
5.63
Q3
3.18
Median
1.10
Q1
0.49
Min
0.04

HPE’s P/S Ratio of 1.04 aligns with the market consensus for the Technology Hardware, Storage & Peripherals industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

IBM

4.23

IT Services Industry

Max
5.99
Q3
4.26
Median
1.93
Q1
0.97
Min
0.12

IBM’s P/S Ratio of 4.23 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

HPE vs. IBM: A comparison of their Price-to-Sales Ratio (TTM) against their respective Technology Hardware, Storage & Peripherals and IT Services industry benchmarks.

Price-to-Book Ratio (MRQ)

HPE

1.11

Technology Hardware, Storage & Peripherals Industry

Max
13.94
Q3
6.87
Median
1.88
Q1
0.94
Min
0.32

HPE’s P/B Ratio of 1.11 is within the conventional range for the Technology Hardware, Storage & Peripherals industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

IBM

9.96

IT Services Industry

Max
12.34
Q3
7.54
Median
3.84
Q1
2.52
Min
0.88

IBM’s P/B Ratio of 9.96 is in the upper tier for the IT Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

HPE vs. IBM: A comparison of their Price-to-Book Ratio (MRQ) against their respective Technology Hardware, Storage & Peripherals and IT Services industry benchmarks.

Valuation at a Glance

SymbolHPEIBM
Price-to-Earnings Ratio (TTM)27.4746.43
Price-to-Sales Ratio (TTM)1.044.23
Price-to-Book Ratio (MRQ)1.119.96
Price-to-Free Cash Flow Ratio (TTM)15.9423.04