Hewlett Packard Enterprise (NYSE:HPE) vs. Advanced Micro Devices (NASDAQ:AMD) Head to Head Contrast

Hewlett Packard Enterprise (NYSE:HPE) and Advanced Micro Devices (NASDAQ:AMD) are both large-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Institutional and Insider Ownership

80.8% of Hewlett Packard Enterprise shares are owned by institutional investors. Comparatively, 71.3% of Advanced Micro Devices shares are owned by institutional investors. 0.4% of Hewlett Packard Enterprise shares are owned by insiders. Comparatively, 0.1% of Advanced Micro Devices shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Hewlett Packard Enterprise and Advanced Micro Devices”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hewlett Packard Enterprise	$30.13 billion	0.87	$2.58 billion	$0.99	20.22
Advanced Micro Devices	$25.79 billion	11.12	$1.64 billion	$1.36	129.99

Hewlett Packard Enterprise has higher revenue and earnings than Advanced Micro Devices. Hewlett Packard Enterprise is trading at a lower price-to-earnings ratio than Advanced Micro Devices, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Hewlett Packard Enterprise has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Advanced Micro Devices has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Hewlett Packard Enterprise and Advanced Micro Devices, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hewlett Packard Enterprise	0	10	6	2	2.56
Advanced Micro Devices	1	9	23	4	2.81

Hewlett Packard Enterprise currently has a consensus target price of $22.6667, suggesting a potential upside of 13.25%. Advanced Micro Devices has a consensus target price of $162.9355, suggesting a potential downside of 7.83%. Given Hewlett Packard Enterprise’s higher possible upside, equities research analysts clearly believe Hewlett Packard Enterprise is more favorable than Advanced Micro Devices.

Profitability

This table compares Hewlett Packard Enterprise and Advanced Micro Devices’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hewlett Packard Enterprise	4.60%	9.59%	3.41%
Advanced Micro Devices	8.03%	8.30%	6.83%

Summary

Advanced Micro Devices beats Hewlett Packard Enterprise on 9 of the 15 factors compared between the two stocks.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise Company provides solutions that allow customers to capture, analyze, and act upon data seamlessly in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It operates in six segments: Compute, HPC & AI, Storage, Intelligent Edge, Financial Services, and Corporate Investments and Other. The company offers general purpose servers for multi-workload computing and workload-optimized servers; HPE ProLiant rack and tower servers; HPE Synergy; HPE Alletra, HPE GreenLake, Zerto, HPE InfoSight, and HPE CloudPhysics storage products; HPE Cray EX, HPE Cray XD, and converged edge systems; and HPE Superdome Flex, HPE Nonstop, and HPE Integrity products. It also provides HPE Aruba products that includes hardware products, such as Wi-Fi access points, switches, and gateways; HPE Aruba Networking software and services comprising cloud-based management, network management and access control, analytics and assurance, software-defined wide-area networking, network security, analytics and assurance, and location services software; and professional and support services, as well as as-a-service and consumption models. In addition, the company offers leasing, financing, IT consumption, and utility programs and asset management services for customers to facilitate technology deployment models and the acquisition of various IT solutions, including hardware, software, and services from Hewlett Packard Enterprise and others; consultative-led services; HPE Ezmeral Container Platform; HPE Ezmeral Software Container Platform and HPE Ezmeral Software Data Fabric; OpsRamp; and Hewlett Packard Labs. It serves commercial and large enterprise groups, such as business and public sector enterprises; and through various partners comprising resellers, distribution partners, original equipment manufacturers, independent software vendors, systems integrators, and advisory firms. The company was founded in 1939 and is headquartered in Spring, Texas.

About Advanced Micro Devices

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products. It provides processors under the AMD Ryzen, AMD Ryzen PRO, Ryzen Threadripper, Ryzen Threadripper PRO, AMD Athlon, AMD Athlon PRO, and AMD PRO A-Series brand names; graphics under the AMD Radeon graphics and AMD Embedded Radeon graphics; and professional graphics under the AMD Radeon Pro graphics brand name. In addition, the company offers data center graphics under the Radeon Instinct and Radeon PRO V-series brands, as well as servers under the AMD Instinct accelerators brand; server microprocessors under the AMD EPYC brands; low power solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, AMD R-Series, and G-Series brands; FPGA products under the Virtex-6, Virtex-7, Virtex UltraScale+, Kintex-7, Kintex UltraScale, Kintex UltraScale+, Artix-7, Artix UltraScale+, Spartan-6, and Spartan-7 brands; adaptive SOCs under the Zynq-7000, Zynq UltraScale+ MPSoC, Zynq UltraScale+ RFSoCs, Versal HBM, Versal Premium, Versal Prime, Versal AI Core, Versal AI Edge, Vitis, and Vivado brands; and compute and network acceleration board products under the Alveo brand. It serves original equipment and design manufacturers, public cloud service providers, system integrators, independent distributors, and add-in-board manufacturers through its direct sales force, and sales representatives. Advanced Micro Devices, Inc. was incorporated in 1969 and is headquartered in Santa Clara, California.