Kingdee International Software Group (OTCMKTS:KGDEY) and Hewlett Packard Enterprise (NYSE:HPE) are both large-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Institutional & Insider Ownership
0.0% of Kingdee International Software Group shares are held by institutional investors. Comparatively, 81.3% of Hewlett Packard Enterprise shares are held by institutional investors. 0.4% 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 stock will outperform the market over the long term.
Valuation and Earnings
This table compares Kingdee International Software Group and Hewlett Packard Enterprise's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Kingdee International Software Group | $472.17 million | 22.04 | $53.91 million | $1.59 | 188.68 |
| Hewlett Packard Enterprise | $26.98 billion | 0.79 | $-322,000,000.00 | $1.35 | 12.10 |
Kingdee International Software Group has higher earnings, but lower revenue than Hewlett Packard Enterprise. Hewlett Packard Enterprise is trading at a lower price-to-earnings ratio than Kingdee International Software Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Kingdee International Software Group has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Hewlett Packard Enterprise has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.
Dividends
Kingdee International Software Group pays an annual dividend of $0.14 per share and has a dividend yield of 0.0%. Hewlett Packard Enterprise pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. Kingdee International Software Group pays out 8.8% of its earnings in the form of a dividend. Hewlett Packard Enterprise pays out 35.6% 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 raised its dividend for 1 consecutive years. Hewlett Packard Enterprise is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Kingdee International Software Group and Hewlett Packard Enterprise's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Kingdee International Software Group | N/A | N/A | N/A |
| Hewlett Packard Enterprise | -1.19% | 10.73% | 3.22% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Kingdee International Software Group and Hewlett Packard Enterprise, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Kingdee International Software Group | 1 | 1 | 1 | 0 | 2.00 |
| Hewlett Packard Enterprise | 2 | 5 | 7 | 0 | 2.36 |
Hewlett Packard Enterprise has a consensus target price of $14.2333, suggesting a potential downside of 12.84%. Given Hewlett Packard Enterprise's stronger consensus rating and higher possible upside, analysts clearly believe Hewlett Packard Enterprise is more favorable than Kingdee International Software Group.
Summary
Hewlett Packard Enterprise beats Kingdee International Software Group on 11 of the 17 factors compared between the two stocks.
