Allot Communications (NYSE: HPQ) and HP (NYSE:HPQ) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
HP pays an annual dividend of $0.56 per share and has a dividend yield of 2.3%. Allot Communications does not pay a dividend. HP pays out 33.9% of its earnings in the form of a dividend.
Volatility and Risk
Allot Communications has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, HP has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500.
Valuation & Earnings
This table compares Allot Communications and HP’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Allot Communications||$81.99 million||2.67||-$18.07 million||($0.35)||-18.54|
|HP||$52.06 billion||0.76||$2.53 billion||$1.65||14.87|
HP has higher revenue and earnings than Allot Communications. Allot Communications is trading at a lower price-to-earnings ratio than HP, indicating that it is currently the more affordable of the two stocks.
This table compares Allot Communications and HP’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
54.7% of Allot Communications shares are owned by institutional investors. Comparatively, 79.8% of HP shares are owned by institutional investors. 0.3% of HP shares are owned 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.
This is a summary of recent ratings and recommmendations for Allot Communications and HP, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Allot Communications currently has a consensus target price of $6.35, suggesting a potential downside of 2.16%. HP has a consensus target price of $24.44, suggesting a potential downside of 0.39%. Given HP’s higher possible upside, analysts plainly believe HP is more favorable than Allot Communications.
HP beats Allot Communications on 12 of the 16 factors compared between the two stocks.
Allot Communications Company Profile
Allot Communications Ltd. is a provider of leading innovative network intelligence and security solutions for service providers worldwide, enhancing value to their customers. Their solutions are deployed globally for network and application analytics, traffic control and shaping, network-based security services, and more. Allot’s multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1000 enterprises. Their industry leading network-based security as a service solution has achieved over 50% penetration with some service providers and is already used by over 20 million subscribers in Europe.
HP Company Profile
HP Inc. provides products, technologies, software, solutions, and services to individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors worldwide. It operates through Personal Systems and Printing segments. The Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin clients, commercial tablets and mobility devices, retail point-of-sale systems, displays and other related 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; and laserJet and enterprise, inkjet and printing, graphics, and 3D printing solutions. The company was formerly known as Hewlett-Packard Company and changed its name to HP Inc. in October 2015. HP Inc. was founded in 1939 and is headquartered in Palo Alto, California.
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