HPE vs. MSFT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at HPE and MSFT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | HPE | MSFT |
|---|---|---|
| Company Name | Hewlett Packard Enterprise Company | Microsoft Corporation |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Technology Hardware, Storage & Peripherals | Software |
| Market Capitalization | 32.23 billion USD | 3,845.55 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | October 19, 2015 | March 13, 1986 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of HPE and MSFT 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.
Historical Performance at a Glance
| Symbol | HPE | MSFT |
|---|---|---|
| 5-Day Price Return | 1.20% | 0.53% |
| 13-Week Price Return | 14.48% | 3.71% |
| 26-Week Price Return | 58.33% | 37.82% |
| 52-Week Price Return | 19.17% | 24.03% |
| Month-to-Date Return | -0.53% | -0.12% |
| Year-to-Date Return | 14.43% | 22.74% |
| 10-Day Avg. Volume | 24.07M | 18.17M |
| 3-Month Avg. Volume | 20.15M | 20.02M |
| 3-Month Volatility | 25.57% | 16.22% |
| Beta | 1.34 | 1.07 |
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.
MSFT
32.44%
Software Industry
- Max
- 66.28%
- Q3
- 21.28%
- Median
- 9.33%
- Q1
- -8.77%
- Min
- -48.16%
In the upper quartile for the Software industry, MSFT’s Return on Equity of 32.44% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
MSFT
36.15%
Software Industry
- Max
- 51.92%
- Q3
- 19.23%
- Median
- 6.98%
- Q1
- -7.14%
- Min
- -41.00%
A Net Profit Margin of 36.15% places MSFT in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
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.
MSFT
45.29%
Software Industry
- Max
- 60.40%
- Q3
- 21.25%
- Median
- 9.90%
- Q1
- -4.97%
- Min
- -43.50%
An Operating Profit Margin of 45.29% places MSFT in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | HPE | MSFT |
|---|---|---|
| Return on Equity (TTM) | 5.08% | 32.44% |
| Return on Assets (TTM) | 1.74% | 18.20% |
| Net Profit Margin (TTM) | 3.77% | 36.15% |
| Operating Profit Margin (TTM) | 3.91% | 45.29% |
| Gross Profit Margin (TTM) | 29.45% | 68.82% |
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.
MSFT
1.35
Software Industry
- Max
- 4.29
- Q3
- 2.37
- Median
- 1.40
- Q1
- 1.03
- Min
- 0.25
MSFT’s Current Ratio of 1.35 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.
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.
MSFT
0.26
Software Industry
- Max
- 2.16
- Q3
- 0.86
- Median
- 0.31
- Q1
- 0.00
- Min
- 0.00
MSFT’s Debt-to-Equity Ratio of 0.26 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
MSFT
891.80
Software Industry
- Max
- 89.65
- Q3
- 32.64
- Median
- 1.00
- Q1
- -9.84
- Min
- -71.23
With an Interest Coverage Ratio of 891.80, MSFT demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | HPE | MSFT |
|---|---|---|
| Current Ratio (MRQ) | 0.95 | 1.35 |
| Quick Ratio (MRQ) | 0.69 | 1.35 |
| Debt-to-Equity Ratio (MRQ) | 0.97 | 0.26 |
| Interest Coverage Ratio (TTM) | 116.71 | 891.80 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
HPE
2.37%
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 2.37% is consistent with its peers in the Technology Hardware, Storage & Peripherals industry, providing a dividend return that is standard for its sector.
MSFT
0.63%
Software Industry
- Max
- 0.22%
- Q3
- 0.11%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSFT’s Dividend Yield of 0.63% is exceptionally high, placing it well above the typical range for the Software industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
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.
MSFT
23.65%
Software Industry
- Max
- 3.29%
- Q3
- 2.41%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
At 23.65%, MSFT’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Software industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.
Dividend at a Glance
| Symbol | HPE | MSFT |
|---|---|---|
| Dividend Yield (TTM) | 2.37% | 0.63% |
| Dividend Payout Ratio (TTM) | 24.59% | 23.65% |
Valuation
Price-to-Earnings Ratio (TTM)
HPE
25.90
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 25.90 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.
MSFT
37.63
Software Industry
- Max
- 145.74
- Q3
- 94.88
- Median
- 45.35
- Q1
- 26.66
- Min
- 8.80
MSFT’s P/E Ratio of 37.63 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
MSFT
13.60
Software Industry
- Max
- 25.67
- Q3
- 13.68
- Median
- 8.28
- Q1
- 4.95
- Min
- 0.90
MSFT’s P/S Ratio of 13.60 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
MSFT
10.76
Software Industry
- Max
- 30.67
- Q3
- 14.92
- Median
- 8.52
- Q1
- 3.89
- Min
- 0.38
MSFT’s P/B Ratio of 10.76 is within the conventional range for the Software 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.
Valuation at a Glance
| Symbol | HPE | MSFT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 25.90 | 37.63 |
| Price-to-Sales Ratio (TTM) | 0.98 | 13.60 |
| Price-to-Book Ratio (MRQ) | 1.11 | 10.76 |
| Price-to-Free Cash Flow Ratio (TTM) | 15.03 | 53.51 |