Hewlett Packard Enterprise (NYSE:HPE) vs. ZTE (OTCMKTS:ZTCOF) Financial Analysis

Hewlett Packard Enterprise (NYSE:HPEGet Free Report) and ZTE (OTCMKTS:ZTCOFGet Free Report) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Hewlett Packard Enterprise and ZTE, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hewlett Packard Enterprise 0 6 3 0 2.33
ZTE 1 0 0 0 1.00

Hewlett Packard Enterprise presently has a consensus target price of $17.60, indicating a potential upside of 13.66%. Given Hewlett Packard Enterprise’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Hewlett Packard Enterprise is more favorable than ZTE.

Profitability

This table compares Hewlett Packard Enterprise and ZTE’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hewlett Packard Enterprise 6.95% 9.83% 3.60%
ZTE N/A N/A N/A

Valuation and Earnings

This table compares Hewlett Packard Enterprise and ZTE’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hewlett Packard Enterprise $29.14 billion 0.69 $2.03 billion $1.54 10.06
ZTE N/A N/A N/A $0.76 2.35

Hewlett Packard Enterprise has higher revenue and earnings than ZTE. ZTE is trading at a lower price-to-earnings ratio than Hewlett Packard Enterprise, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

81.2% of Hewlett Packard Enterprise shares are held by institutional investors. Comparatively, 5.3% of ZTE shares are held by institutional investors. 0.5% of Hewlett Packard Enterprise shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Hewlett Packard Enterprise beats ZTE on 11 of the 11 factors compared between the two stocks.

About Hewlett Packard Enterprise

(Get Free Report)

Hewlett Packard Enterprise Company provides solutions that allow customers to capture, analyze, and act upon data seamlessly in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It operates in six segments: Compute, HPC & AI, Storage, Intelligent Edge, Financial Services, and Corporate Investments and Other. The company offers general purpose servers for multi-workload computing and workload-optimized servers; HPE ProLiant rack and tower servers; HPE Synergy; HPE Alletra, HPE GreenLake, Zerto, HPE InfoSight, and HPE CloudPhysics storage products; HPE Cray EX, HPE Cray XD, and converged edge systems; and HPE Superdome Flex, HPE Nonstop, and HPE Integrity products. It also provides HPE Aruba products that includes hardware products, such as Wi-Fi access points, switches, and gateways; HPE Aruba Networking software and services comprising cloud-based management, network management and access control, analytics and assurance, software-defined wide-area networking, network security, analytics and assurance, and location services software; and professional and support services, as well as as-a-service and consumption models. In addition, the company offers leasing, financing, IT consumption, and utility programs and asset management services for customers to facilitate technology deployment models and the acquisition of various IT solutions, including hardware, software, and services from Hewlett Packard Enterprise and others; consultative-led services; HPE Ezmeral Container Platform; HPE Ezmeral Software Container Platform and HPE Ezmeral Software Data Fabric; OpsRamp; and Hewlett Packard Labs. It serves commercial and large enterprise groups, such as business and public sector enterprises; and through various partners comprising resellers, distribution partners, original equipment manufacturers, independent software vendors, systems integrators, and advisory firms. The company was founded in 1939 and is headquartered in Spring, Texas.

About ZTE

(Get Free Report)

ZTE Corporation engages in the provision of integrated communication information solutions in the People's Republic of China, rest of Asia, Africa, Europe, the United States, and Oceania. It operates through three segments: Carriers' Networks, Government and Corporate Business, and Consumer Business. The Carriers' Network segment provides wireless access, wireline access, bearer networks, core networks, server and storage, and other innovative technologies and product solutions. The Consumer Business segment is involved in the development, production and sale of home information terminal, smart phones, mobile internet terminals, and innovative fusion terminals, as well as provision of related software application and value-added services. The Government and Corporate Business segment focuses on providing informatization solutions for the government and corporations through the application of products, such as communications networks, Internet of Things, big data, and cloud computing. The company was founded in 1985 and is headquartered in Shenzhen, the People's Republic of China.

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