Head to Head Contrast: Lenovo Group (OTCMKTS:LNVGY) vs. Dell Technologies (NYSE:DELL)

Lenovo Group (OTCMKTS:LNVGY) and Dell Technologies (NYSE:DELL) are both large-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.

Profitability

This table compares Lenovo Group and Dell Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lenovo Group	2.00%	25.20%	3.62%
Dell Technologies	4.63%	-226.48%	6.43%

Valuation and Earnings

This table compares Lenovo Group and Dell Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lenovo Group	$69.08 billion	0.23	$1.38 billion	$2.15	12.15
Dell Technologies	$95.57 billion	0.91	$4.59 billion	$6.27	20.53

Dell Technologies has higher revenue and earnings than Lenovo Group. Lenovo Group is trading at a lower price-to-earnings ratio than Dell Technologies, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Lenovo Group has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Dell Technologies has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Dividends

Lenovo Group pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. Dell Technologies pays an annual dividend of $2.10 per share and has a dividend yield of 1.6%. Lenovo Group pays out 18.6% of its earnings in the form of a dividend. Dell Technologies pays out 33.5% 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. Dell Technologies has increased its dividend for 3 consecutive years. Dell Technologies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Lenovo Group and Dell Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lenovo Group	0	0	0	0	0.00
Dell Technologies	0	4	16	0	2.80

Dell Technologies has a consensus price target of $140.06, indicating a potential upside of 8.80%. Given Dell Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Dell Technologies is more favorable than Lenovo Group.

Insider and Institutional Ownership

0.1% of Lenovo Group shares are owned by institutional investors. Comparatively, 76.4% of Dell Technologies shares are owned by institutional investors. 42.0% of Dell Technologies shares are owned by 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.

Summary

Dell Technologies beats Lenovo Group on 15 of the 17 factors compared between the two stocks.

About Lenovo Group

Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services. It operates through Intelligent Devices Group, Infrastructure Solutions Group, and Solutions and Services Group segments. The company offers commercial and consumer personal computers, as well as servers and workstations; and a family of mobile Internet devices, including tablets and smartphones. In addition, it provides laptops, monitors, accessories, smart home and collaboration solutions, augmented and virtual reality, commercial internet of things, and smart infrastructure data center solutions. Further, the company manufactures and distributes IT products, computers, computer hardware, and peripheral equipment; and offers IT, business planning, management, supply chain, finance, administration support, procurement agency, data management, intellectual property, and investment management services. Additionally, it is involved in the retail and service business for consumer electronic products and related digital services; development, ownership, licensing, and sale of communications hardware and software; and develops software and applications. Furthermore, the company distributes smartphone, tablet, server, and storage. It operates in China, the Asia Pacific, Europe, the Middle East, Africa, and the Americas. Lenovo Group Limited was founded in 1984 and is headquartered in Quarry Bay, Hong Kong.

About Dell Technologies

Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. The company operates through two segments, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The ISG segment provides modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage; and general-purpose and AI-optimized servers. This segment also offers networking products and services comprising wide area network infrastructure, data center and edge networking switches, and cables and optics that help its business customers to transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes; software and peripherals; and consulting, support, and deployment services. The CSG segment provides desktops, workstations, and notebooks; displays, docking stations, keyboards, mice, webcam, and audio devices; and third-party software and peripherals, as well as configuration, support and deployment, and extended warranty services. It is involved in cybersecurity technology-driven security solutions to prevent security breaches, detect malicious activity, respond rapidly when a security breach occurs, and identify emerging threats; originating, collecting, and servicing customer financing arrangements; and the resale of VMware products and services. The company serves enterprises, public institutions, and small and medium-sized businesses through its direct sales channel, value-added resellers, system integrators, distributors, and retailers. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in August 2016. Dell Technologies Inc. was founded in 1984 and is headquartered in Round Rock, Texas.