Dell Technologies (NYSE:DELL – Get Free Report) and Lenovo Group (OTCMKTS:LNVGY – Get Free Report) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.
Risk & Volatility
Dell Technologies has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Lenovo Group has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Dell Technologies and Lenovo Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dell Technologies | 0 | 4 | 16 | 0 | 2.80 |
| Lenovo Group | 0 | 0 | 0 | 0 | 0.00 |
Insider & Institutional Ownership
76.4% of Dell Technologies shares are held by institutional investors. Comparatively, 0.1% of Lenovo Group shares are held by institutional investors. 42.0% of Dell Technologies 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.
Profitability
This table compares Dell Technologies and Lenovo Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dell Technologies | 4.63% | -226.48% | 6.43% |
| Lenovo Group | 2.00% | 25.20% | 3.62% |
Valuation & Earnings
This table compares Dell Technologies and Lenovo Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dell Technologies | $96.70 billion | 0.89 | $4.59 billion | $6.27 | 20.24 |
| Lenovo Group | $69.08 billion | 0.22 | $1.38 billion | $2.15 | 11.53 |
Dell Technologies has higher revenue and earnings than Lenovo Group. Lenovo Group is trading at a lower price-to-earnings ratio than Dell Technologies, indicating that it is currently the more affordable of the two stocks.
Dividends
Dell Technologies pays an annual dividend of $2.10 per share and has a dividend yield of 1.7%. Lenovo Group pays an annual dividend of $1.51 per share and has a dividend yield of 6.1%. Dell Technologies pays out 33.5% of its earnings in the form of a dividend. Lenovo Group pays out 70.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Dell Technologies has raised its dividend for 3 consecutive years.
Summary
Dell Technologies beats Lenovo Group on 15 of the 17 factors compared between the two stocks.
About Dell Technologies
Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. The company operates through two segments, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The ISG segment provides modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage; and general-purpose and AI-optimized servers. This segment also offers networking products and services comprising wide area network infrastructure, data center and edge networking switches, and cables and optics that help its business customers to transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes; software and peripherals; and consulting, support, and deployment services. The CSG segment provides desktops, workstations, and notebooks; displays, docking stations, keyboards, mice, webcam, and audio devices; and third-party software and peripherals, as well as configuration, support and deployment, and extended warranty services. It is involved in cybersecurity technology-driven security solutions to prevent security breaches, detect malicious activity, respond rapidly when a security breach occurs, and identify emerging threats; originating, collecting, and servicing customer financing arrangements; and the resale of VMware products and services. The company serves enterprises, public institutions, and small and medium-sized businesses through its direct sales channel, value-added resellers, system integrators, distributors, and retailers. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in August 2016. Dell Technologies Inc. was founded in 1984 and is headquartered in Round Rock, Texas.
About Lenovo Group
Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services. It operates through Intelligent Devices Group, Infrastructure Solutions Group, and Solutions and Services Group segments. The company offers commercial and consumer personal computers, as well as servers and workstations; and a family of mobile Internet devices, including tablets and smartphones. In addition, it provides laptops, monitors, accessories, smart home and collaboration solutions, augmented and virtual reality, commercial internet of things, and smart infrastructure data center solutions. Further, the company manufactures and distributes IT products, computers, computer hardware, and peripheral equipment; and offers IT, business planning, management, supply chain, finance, administration support, procurement agency, data management, intellectual property, and investment management services. Additionally, it is involved in the retail and service business for consumer electronic products and related digital services; development, ownership, licensing, and sale of communications hardware and software; and develops software and applications. Furthermore, the company distributes smartphone, tablet, server, and storage. It operates in China, the Asia Pacific, Europe, the Middle East, Africa, and the Americas. Lenovo Group Limited was founded in 1984 and is headquartered in Quarry Bay, Hong Kong.
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