HPE vs. MSTR: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at HPE and MSTR, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | HPE | MSTR |
|---|---|---|
| Company Name | Hewlett Packard Enterprise Company | Strategy Inc |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Technology Hardware, Storage & Peripherals | Software |
| Market Capitalization | 27.98 billion USD | 56.08 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | October 19, 2015 | June 11, 1998 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of HPE and MSTR 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 | MSTR |
|---|---|---|
| 5-Day Price Return | -7.25% | -15.53% |
| 13-Week Price Return | -1.85% | -46.25% |
| 26-Week Price Return | 18.94% | -53.11% |
| 52-Week Price Return | -0.52% | -40.36% |
| Month-to-Date Return | -13.06% | -27.49% |
| Year-to-Date Return | -0.56% | -32.53% |
| 10-Day Avg. Volume | 33.03M | 14.41M |
| 3-Month Avg. Volume | 25.88M | 11.87M |
| 3-Month Volatility | 38.81% | 58.37% |
| Beta | 1.36 | 3.47 |
Profitability
Return on Equity (TTM)
HPE
5.08%
Technology Hardware, Storage & Peripherals Industry
- Max
- 56.93%
- Q3
- 29.31%
- Median
- 7.95%
- Q1
- 5.02%
- Min
- -7.45%
HPE’s Return on Equity of 5.08% is on par with the norm for the Technology Hardware, Storage & Peripherals industry, indicating its profitability relative to shareholder equity is typical for the sector.
MSTR
19.76%
Software Industry
- Max
- 65.88%
- Q3
- 22.54%
- Median
- 10.46%
- Q1
- -6.54%
- Min
- -41.05%
MSTR’s Return on Equity of 19.76% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
HPE
3.77%
Technology Hardware, Storage & Peripherals Industry
- Max
- 17.92%
- Q3
- 8.33%
- Median
- 4.15%
- Q1
- 1.88%
- Min
- -3.36%
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.
MSTR
1,667.09%
Software Industry
- Max
- 53.50%
- Q3
- 20.30%
- Median
- 9.60%
- Q1
- -4.98%
- Min
- -41.00%
MSTR’s Net Profit Margin of 1,667.09% is exceptionally high, placing it well beyond the typical range for the Software industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin (TTM)
HPE
3.91%
Technology Hardware, Storage & Peripherals Industry
- Max
- 20.70%
- Q3
- 10.85%
- Median
- 6.05%
- Q1
- 3.54%
- Min
- -4.90%
HPE’s Operating Profit Margin of 3.91% is around the midpoint for the Technology Hardware, Storage & Peripherals industry, indicating that its efficiency in managing core business operations is typical for the sector.
MSTR
2,312.91%
Software Industry
- Max
- 61.99%
- Q3
- 23.67%
- Median
- 10.93%
- Q1
- -3.57%
- Min
- -40.19%
MSTR’s Operating Profit Margin of 2,312.91% is exceptionally high, placing it well above the typical range for the Software industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | HPE | MSTR |
|---|---|---|
| Return on Equity (TTM) | 5.08% | 19.76% |
| Return on Assets (TTM) | 1.74% | 15.21% |
| Net Profit Margin (TTM) | 3.77% | 1,667.09% |
| Operating Profit Margin (TTM) | 3.91% | 2,312.91% |
| Gross Profit Margin (TTM) | 29.45% | 70.12% |
Financial Strength
Current Ratio (MRQ)
HPE
0.95
Technology Hardware, Storage & Peripherals Industry
- Max
- 2.51
- Q3
- 1.90
- Median
- 1.38
- Q1
- 0.97
- 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.
MSTR
0.66
Software Industry
- Max
- 4.01
- Q3
- 2.27
- Median
- 1.50
- Q1
- 1.03
- Min
- 0.25
MSTR’s Current Ratio of 0.66 falls into the lower quartile for the Software industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
HPE
0.97
Technology Hardware, Storage & Peripherals Industry
- Max
- 1.34
- Q3
- 0.82
- Median
- 0.42
- Q1
- 0.16
- 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.
MSTR
0.14
Software Industry
- Max
- 2.04
- Q3
- 0.86
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
MSTR’s Debt-to-Equity Ratio of 0.14 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
- 62.44
- Median
- 17.59
- Q1
- 5.32
- 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.
MSTR
-30.23
Software Industry
- Max
- 89.65
- Q3
- 33.82
- Median
- 1.59
- Q1
- -10.48
- Min
- -71.23
MSTR has a negative Interest Coverage Ratio of -30.23. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | HPE | MSTR |
|---|---|---|
| Current Ratio (MRQ) | 0.95 | 0.66 |
| Quick Ratio (MRQ) | 0.69 | 0.54 |
| Debt-to-Equity Ratio (MRQ) | 0.97 | 0.14 |
| Interest Coverage Ratio (TTM) | 116.71 | -30.23 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
HPE
2.74%
Technology Hardware, Storage & Peripherals Industry
- Max
- 4.93%
- Q3
- 3.31%
- Median
- 1.70%
- Q1
- 0.01%
- Min
- 0.00%
HPE’s Dividend Yield of 2.74% is consistent with its peers in the Technology Hardware, Storage & Peripherals industry, providing a dividend return that is standard for its sector.
MSTR
0.34%
Software Industry
- Max
- 0.34%
- Q3
- 0.17%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.34%, MSTR offers a more attractive income stream than most of its peers in the Software industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio (TTM)
HPE
24.59%
Technology Hardware, Storage & Peripherals Industry
- Max
- 136.56%
- Q3
- 76.58%
- Median
- 35.95%
- Q1
- 0.01%
- 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.
MSTR
0.00%
Software Industry
- Max
- 12.76%
- Q3
- 6.56%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSTR 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.
Dividend at a Glance
| Symbol | HPE | MSTR |
|---|---|---|
| Dividend Yield (TTM) | 2.74% | 0.34% |
| Dividend Payout Ratio (TTM) | 24.59% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
HPE
22.38
Technology Hardware, Storage & Peripherals Industry
- Max
- 43.58
- Q3
- 27.14
- Median
- 21.23
- Q1
- 15.28
- Min
- 8.31
HPE’s P/E Ratio of 22.38 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.
MSTR
7.25
Software Industry
- Max
- 142.78
- Q3
- 72.24
- Median
- 36.21
- Q1
- 24.24
- Min
- 4.55
In the lower quartile for the Software industry, MSTR’s P/E Ratio of 7.25 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
HPE
0.84
Technology Hardware, Storage & Peripherals Industry
- Max
- 6.35
- Q3
- 3.45
- Median
- 0.96
- Q1
- 0.46
- Min
- 0.04
HPE’s P/S Ratio of 0.84 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.
MSTR
120.85
Software Industry
- Max
- 20.79
- Q3
- 12.71
- Median
- 6.75
- Q1
- 4.56
- Min
- 0.87
With a P/S Ratio of 120.85, MSTR trades at a valuation that eclipses even the highest in the Software industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
HPE
1.11
Technology Hardware, Storage & Peripherals Industry
- Max
- 13.94
- Q3
- 8.15
- Median
- 1.85
- 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.
MSTR
1.59
Software Industry
- Max
- 30.49
- Q3
- 14.84
- Median
- 8.09
- Q1
- 4.32
- Min
- 0.38
MSTR’s P/B Ratio of 1.59 is in the lower quartile for the Software industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | HPE | MSTR |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 22.38 | 7.25 |
| Price-to-Sales Ratio (TTM) | 0.84 | 120.85 |
| Price-to-Book Ratio (MRQ) | 1.11 | 1.59 |
| Price-to-Free Cash Flow Ratio (TTM) | 12.99 | 978.70 |