Hewlett Packard Enterprise (NYSE:HPE) vs. Silicon Motion Technology (NASDAQ:SIMO) Head-To-Head Contrast

Silicon Motion Technology (NASDAQ:SIMO) and Hewlett Packard Enterprise (NYSE:HPE) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.

Dividends

Silicon Motion Technology pays an annual dividend of $1.99 per share and has a dividend yield of 2.6%. Hewlett Packard Enterprise pays an annual dividend of $0.52 per share and has a dividend yield of 2.5%. Silicon Motion Technology pays out 84.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hewlett Packard Enterprise pays out 52.5% of its earnings in the form of a dividend. Hewlett Packard Enterprise has raised its dividend for 2 consecutive years.

Volatility & Risk

Silicon Motion Technology has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Hewlett Packard Enterprise has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Silicon Motion Technology and Hewlett Packard Enterprise, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silicon Motion Technology	0	0	10	0	3.00
Hewlett Packard Enterprise	0	10	6	2	2.56

Silicon Motion Technology currently has a consensus price target of $87.7778, indicating a potential upside of 14.92%. Hewlett Packard Enterprise has a consensus price target of $22.8667, indicating a potential upside of 9.72%. Given Silicon Motion Technology’s stronger consensus rating and higher probable upside, equities analysts clearly believe Silicon Motion Technology is more favorable than Hewlett Packard Enterprise.

Profitability

This table compares Silicon Motion Technology and Hewlett Packard Enterprise’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Silicon Motion Technology	10.36%	10.14%	7.76%
Hewlett Packard Enterprise	4.60%	9.59%	3.41%

Insider & Institutional Ownership

78.0% of Silicon Motion Technology shares are owned by institutional investors. Comparatively, 80.8% of Hewlett Packard Enterprise shares are owned by institutional investors. 5.3% of Silicon Motion Technology shares are owned by insiders. Comparatively, 0.4% of Hewlett Packard Enterprise shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Silicon Motion Technology and Hewlett Packard Enterprise”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silicon Motion Technology	$803.55 million	3.23	$89.25 million	$2.37	32.23
Hewlett Packard Enterprise	$30.13 billion	0.91	$2.58 billion	$0.99	21.05

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

Summary

Silicon Motion Technology beats Hewlett Packard Enterprise on 11 of the 18 factors compared between the two stocks.

About Silicon Motion Technology

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. The company offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications. It markets its controllers under the SMI brand; enterprise-grade SSDs under the Shannon Systems brand; and single-chip industrial-grade SSDs under the FerriSSD, Ferri-eMMC, and Ferri-UFS brands. The company markets and sells its products through direct sales personnel and independent electronics distributors to NAND flash makers, module makers, hyperscalers, and OEMs. It operates in Taiwan, the United States, Korea, China, Malaysia, Singapore, and internationally. The company was founded in 1995 and is based in Hong Kong, Hong Kong.

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.