Hewlett-Packard (NYSE: HPQ) and Lantronix (NASDAQ:LTRX) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.
Institutional and Insider Ownership
80.4% of Hewlett-Packard shares are owned by institutional investors. Comparatively, 15.2% of Lantronix shares are owned by institutional investors. 0.3% of Hewlett-Packard shares are owned by insiders. Comparatively, 52.4% of Lantronix shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Hewlett-Packard and Lantronix’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hewlett-Packard||$52.06 billion||0.69||$2.53 billion||$1.65||13.32|
Hewlett-Packard has higher revenue and earnings than Lantronix.
This is a breakdown of recent ratings and target prices for Hewlett-Packard and Lantronix, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hewlett-Packard presently has a consensus target price of $23.83, indicating a potential upside of 8.48%. Lantronix has a consensus target price of $4.00, indicating a potential upside of 80.18%. Given Lantronix’s stronger consensus rating and higher possible upside, analysts plainly believe Lantronix is more favorable than Hewlett-Packard.
This table compares Hewlett-Packard and Lantronix’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Hewlett-Packard pays an annual dividend of $0.56 per share and has a dividend yield of 2.5%. Lantronix does not pay a dividend. Hewlett-Packard pays out 33.9% of its earnings in the form of a dividend.
Risk & Volatility
Hewlett-Packard has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, Lantronix has a beta of -0.12, suggesting that its share price is 112% less volatile than the S&P 500.
Hewlett-Packard beats Lantronix on 8 of the 15 factors compared between the two stocks.
Hewlett-Packard Company Profile
HP Inc. provides products, technologies, software, solutions, and services to individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors worldwide. It operates through Personal Systems and Printing segments. The Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin clients, commercial tablets and mobility devices, retail point-of-sale systems, displays and other related 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; and laserJet and enterprise, inkjet and printing, graphics, and 3D printing solutions. The company was formerly known as Hewlett-Packard Company and changed its name to HP Inc. in October 2015. HP Inc. was founded in 1939 and is headquartered in Palo Alto, California.
Lantronix Company Profile
Lantronix, Inc. provides secure data access and management solutions for Internet of Things (IoT) assets in the Americas, Europe, the Middle East, Africa, and the Asia Pacific Japan. The company's IoT products include IoT gateways, which provide secure connectivity and the ability to add integrated device management and advanced data access features; and IoT building blocks that offer basic secure machine connectivity and unmanaged data access. It also offers information technology (IT) management products, which comprise console management, power management, and keyboard video mouse products that offer remote access to IT and networking infrastructure deployed in test labs, data centers, and server rooms; and xPrintServer. The company provides its IT management product line and external IoT solutions through value added resellers, systems integrators, distributors, consumers, online retailers, IT resellers, corporate customers, and government entities, e-tailers, original design manufacturers, and original equipment manufacturers. Lantronix, Inc. was founded in 1989 and is headquartered in Irvine, California.
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