HP (NYSE: HPQ) and RadiSys Corporation (NASDAQ:RSYS) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Institutional and Insider Ownership

79.0% of HP shares are owned by institutional investors. Comparatively, 57.4% of RadiSys Corporation shares are owned by institutional investors. 0.6% of HP shares are owned by company insiders. Comparatively, 4.9% of RadiSys Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares HP and RadiSys Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
HP $49.47 billion 0.64 $4.30 billion $1.42 13.31
RadiSys Corporation $168.66 million 0.35 -$8.87 million ($0.63) -2.40

HP has higher revenue and earnings than RadiSys Corporation. RadiSys Corporation is trading at a lower price-to-earnings ratio than HP, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for HP and RadiSys Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HP 0 8 12 0 2.60
RadiSys Corporation 0 0 4 0 3.00

HP currently has a consensus price target of $19.78, suggesting a potential upside of 4.64%. RadiSys Corporation has a consensus price target of $3.63, suggesting a potential upside of 140.07%. Given RadiSys Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe RadiSys Corporation is more favorable than HP.

Profitability

This table compares HP and RadiSys Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HP 4.94% -68.86% 9.80%
RadiSys Corporation -14.38% -14.12% -5.46%

Risk & Volatility

HP has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, RadiSys Corporation has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500.

Dividends

HP pays an annual dividend of $0.53 per share and has a dividend yield of 2.8%. RadiSys Corporation does not pay a dividend. HP pays out 37.3% of its earnings in the form of a dividend.

Summary

HP beats RadiSys Corporation on 10 of the 15 factors compared between the two stocks.

HP Company Profile

HP Inc. is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses, and enterprises, including customers in the government, health and education sectors. The Company provides personal computing and other access devices, imaging and printing products, and related technologies, solutions and services. Its segments include Personal Systems, Printing and Corporate Investments. The Personal Systems segment provides Commercial personal computers (PCs), Consumer PCs, workstations, thin clients, Commercial tablets and mobility devices, retail point-of-sale systems, displays and other 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. The Corporate Investments segment includes the operations of HP Labs and certain business incubation projects.

RadiSys Corporation Company Profile

Radisys Corporation (Radisys) is a services acceleration company. The Company’s application aware traffic distribution platforms, real-time media processing products and wireless access technologies enable service providers to virtualize and monetize their networks. The Company’s products and services are organized into two segments: Software-Systems, and Embedded Products and Hardware Services. The Company’s Software-Systems segment consists of three product families: FlowEngine, MediaEngine and CellEngine. Also included in the Software-Systems segment is its Professional Service organization. The Company’s Embedded Products and Hardware Services segment provides customers with hardware based products targeted at the communications and healthcare markets. Products within this segment fall under primary categories, including T-Series Advanced Telecommunications Computing Architecture (ATCA) Platforms, Component Object Model (COM) Express and Rackmount Servers, and Other Products.

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