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

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

Company Profile

SymbolHPELITE
Company NameHewlett Packard Enterprise CompanyLumentum Holdings Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryTechnology Hardware, Storage & PeripheralsCommunications Equipment
Market Capitalization32.89 billion USD11.98 billion USD
ExchangeNYSENasdaqGS
Listing DateOctober 19, 2015July 23, 2015
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of HPE and LITE 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. LITE: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolHPELITE
5-Day Price Return2.97%6.52%
13-Week Price Return21.73%71.17%
26-Week Price Return56.40%146.12%
52-Week Price Return21.85%152.15%
Month-to-Date Return1.51%22.51%
Year-to-Date Return16.77%93.82%
10-Day Avg. Volume25.72M3.67M
3-Month Avg. Volume20.01M2.87M
3-Month Volatility26.15%46.06%
Beta1.341.47

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.

LITE

2.74%

Communications Equipment Industry

Max
32.30%
Q3
20.90%
Median
9.10%
Q1
4.29%
Min
-13.50%

LITE’s Return on Equity of 2.74% is in the lower quartile for the Communications Equipment industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

HPE vs. LITE: A comparison of their Return on Equity (TTM) against their respective Technology Hardware, Storage & Peripherals and Communications Equipment 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.

LITE

1.57%

Communications Equipment Industry

Max
23.65%
Q3
12.56%
Median
5.62%
Q1
2.50%
Min
-3.09%

Falling into the lower quartile for the Communications Equipment industry, LITE’s Net Profit Margin of 1.57% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

HPE vs. LITE: A comparison of their Net Profit Margin (TTM) against their respective Technology Hardware, Storage & Peripherals and Communications Equipment 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.

LITE

-10.95%

Communications Equipment Industry

Max
25.23%
Q3
13.72%
Median
6.44%
Q1
3.00%
Min
-10.95%

LITE has a negative Operating Profit Margin of -10.95%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

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

Profitability at a Glance

SymbolHPELITE
Return on Equity (TTM)5.08%2.74%
Return on Assets (TTM)1.74%0.64%
Net Profit Margin (TTM)3.77%1.57%
Operating Profit Margin (TTM)3.91%-10.95%
Gross Profit Margin (TTM)29.45%27.96%

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.

LITE

4.37

Communications Equipment Industry

Max
3.33
Q3
2.13
Median
1.55
Q1
1.15
Min
0.91

LITE’s Current Ratio of 4.37 is exceptionally high, placing it well outside the typical range for the Communications Equipment industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

HPE vs. LITE: A comparison of their Current Ratio (MRQ) against their respective Technology Hardware, Storage & Peripherals and Communications Equipment 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.

LITE

2.27

Communications Equipment Industry

Max
1.44
Q3
0.86
Median
0.53
Q1
0.22
Min
0.00

With a Debt-to-Equity Ratio of 2.27, LITE operates with exceptionally high leverage compared to the Communications Equipment industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

HPE vs. LITE: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Technology Hardware, Storage & Peripherals and Communications Equipment 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.

LITE

4.46

Communications Equipment Industry

Max
55.49
Q3
34.19
Median
7.59
Q1
3.73
Min
-9.94

LITE’s Interest Coverage Ratio of 4.46 is positioned comfortably within the norm for the Communications Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

SymbolHPELITE
Current Ratio (MRQ)0.954.37
Quick Ratio (MRQ)0.692.87
Debt-to-Equity Ratio (MRQ)0.972.27
Interest Coverage Ratio (TTM)116.714.46

Growth

Revenue Growth

HPE vs. LITE: 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. LITE: 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

2.35%

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 2.35% is consistent with its peers in the Technology Hardware, Storage & Peripherals industry, providing a dividend return that is standard for its sector.

LITE

0.00%

Communications Equipment Industry

Max
8.13%
Q3
3.29%
Median
0.94%
Q1
0.00%
Min
0.00%

LITE currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

HPE vs. LITE: A comparison of their Dividend Yield (TTM) against their respective Technology Hardware, Storage & Peripherals and Communications Equipment 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.

LITE

0.00%

Communications Equipment Industry

Max
111.16%
Q3
70.91%
Median
30.78%
Q1
0.00%
Min
0.00%

LITE has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

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

Dividend at a Glance

SymbolHPELITE
Dividend Yield (TTM)2.35%0.00%
Dividend Payout Ratio (TTM)24.59%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

HPE

26.03

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 26.03 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.

LITE

459.17

Communications Equipment Industry

Max
103.74
Q3
61.65
Median
26.20
Q1
18.12
Min
4.19

At 459.17, LITE’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Communications Equipment industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

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

Price-to-Sales Ratio (TTM)

HPE

0.98

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 0.98 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.

LITE

7.23

Communications Equipment Industry

Max
6.86
Q3
6.24
Median
2.44
Q1
1.02
Min
0.48

With a P/S Ratio of 7.23, LITE trades at a valuation that eclipses even the highest in the Communications Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

HPE vs. LITE: A comparison of their Price-to-Sales Ratio (TTM) against their respective Technology Hardware, Storage & Peripherals and Communications Equipment 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.

LITE

5.81

Communications Equipment Industry

Max
6.28
Q3
5.73
Median
3.32
Q1
2.02
Min
0.42

LITE’s P/B Ratio of 5.81 is in the upper tier for the Communications Equipment 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. LITE: A comparison of their Price-to-Book Ratio (MRQ) against their respective Technology Hardware, Storage & Peripherals and Communications Equipment industry benchmarks.

Valuation at a Glance

SymbolHPELITE
Price-to-Earnings Ratio (TTM)26.03459.17
Price-to-Sales Ratio (TTM)0.987.23
Price-to-Book Ratio (MRQ)1.115.81
Price-to-Free Cash Flow Ratio (TTM)15.111,177.47