Head to Head Comparison: Hewlett Packard Enterprise (NYSE:HPE) vs. CSP (NASDAQ:CSPI)

Hewlett Packard Enterprise (NYSE:HPE) and CSP (NASDAQ:CSPI) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Dividends

Hewlett Packard Enterprise pays an annual dividend of $0.52 per share and has a dividend yield of 2.2%. CSP pays an annual dividend of $0.12 per share and has a dividend yield of 1.0%. Hewlett Packard Enterprise pays out 63.4% of its earnings in the form of a dividend. CSP pays out -70.6% 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. Hewlett Packard Enterprise has increased its dividend for 2 consecutive years and CSP has increased its dividend for 2 consecutive years.

Earnings and Valuation

This table compares Hewlett Packard Enterprise and CSP”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hewlett Packard Enterprise	$30.13 billion	1.05	$2.58 billion	$0.82	29.28
CSP	$55.22 million	2.21	-$330,000.00	($0.17)	-72.76

Hewlett Packard Enterprise has higher revenue and earnings than CSP. CSP 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.

Volatility and Risk

Hewlett Packard Enterprise has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, CSP has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Hewlett Packard Enterprise and CSP, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hewlett Packard Enterprise	0	10	8	1	2.53
CSP	0	0	0	0	0.00

Hewlett Packard Enterprise currently has a consensus price target of $24.81, indicating a potential upside of 3.34%. Given Hewlett Packard Enterprise’s stronger consensus rating and higher possible upside, research analysts clearly believe Hewlett Packard Enterprise is more favorable than CSP.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hewlett Packard Enterprise	3.77%	9.01%	3.10%
CSP	-2.78%	-3.35%	-2.35%

Institutional and Insider Ownership

80.8% of Hewlett Packard Enterprise shares are owned by institutional investors. Comparatively, 26.7% of CSP shares are owned by institutional investors. 0.4% of Hewlett Packard Enterprise shares are owned by company insiders. Comparatively, 16.6% of CSP shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Hewlett Packard Enterprise beats CSP on 14 of the 17 factors compared between the two stocks.

About Hewlett Packard Enterprise

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 CSP

CSP Inc. develops and markets IT integration solutions, security products, managed IT services, cloud services, purpose-built network adapters, and cluster computer systems for commercial and defense customers worldwide. It operates in two segments, Technology Solutions and High Performance Products. The Technology Solutions segment provides third-party computer hardware and software as a value-added reseller to various customers in web and infrastructure hosting, education, telecommunications, healthcare services, distribution, financial and professional services, and manufacturing industries. This segment also offers professional IT consulting services, such as planning, designing, assessment, implementation, migration, optimization, and project management; storage and virtualization solutions; enterprise security intrusion prevention, network access control, and unified threat management services; and IT security compliance services. In addition, this segment provides unified communications, wireless, and routing and switching solutions; custom software applications and solutions development and support services; optimization, maintenance, and technical support services; and managed IT services, such as monitoring, reporting, and management of alerts for the resolution and preventive general IT, as well as IT security support tasks. Further, this segment offers managed and cloud services, such as proactive monitoring and remote management of IT infrastructure, managed and hosted unified communication services, security, and backup and replication. The High Performance Products segment offers ARIA Software-Defined Security, a cybersecurity solution; ARIA Zero Trust PROTECT that stopping the attacks that are used to attack critical infrastructure applications; Myricom network adapters; and multicomputer products for digital signal processing applications in the defense markets. CSP Inc. was incorporated in 1968 and is headquartered in Lowell, Massachusetts.