Dell Technologies (NYSE:DELL) and Verizon Communications (NYSE:VZ) are both large-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.
Volatility and Risk
Dell Technologies has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Verizon Communications has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500.
Earnings & Valuation
This table compares Dell Technologies and Verizon Communications' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Dell Technologies | $92.15 billion | 0.69 | $4.62 billion | $5.96 | 14.32 |
Verizon Communications | $131.87 billion | 1.76 | $19.27 billion | $4.81 | 11.64 |
Verizon Communications has higher revenue and earnings than Dell Technologies. Verizon Communications is trading at a lower price-to-earnings ratio than Dell Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings for Dell Technologies and Verizon Communications, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Dell Technologies | 0 | 7 | 11 | 0 | 2.61 |
Verizon Communications | 0 | 13 | 5 | 1 | 2.37 |
Dell Technologies presently has a consensus price target of $75.5789, suggesting a potential downside of 11.45%. Verizon Communications has a consensus price target of $61.8889, suggesting a potential upside of 10.52%. Given Verizon Communications' higher possible upside, analysts clearly believe Verizon Communications is more favorable than Dell Technologies.
Insider and Institutional Ownership
27.4% of Dell Technologies shares are owned by institutional investors. Comparatively, 64.9% of Verizon Communications shares are owned by institutional investors. 48.3% of Dell Technologies shares are owned by company insiders. Comparatively, 0.1% of Verizon Communications shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Dell Technologies and Verizon Communications' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Dell Technologies | 2.63% | 124.18% | 4.38% |
Verizon Communications | 14.76% | 32.15% | 6.87% |
Summary
Verizon Communications beats Dell Technologies on 8 of the 15 factors compared between the two stocks.