Hewlett Packard Enterprise vs HP
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KIRA’s take AI analyst
I put Hewlett Packard Enterprise and HP side by side, using each one’s latest annual report. Here is what stands out:
- HP is the larger business, with $55.3B of revenue in fiscal 2025 against $34.3B for Hewlett Packard Enterprise, about 1.6 times as much.
- Hewlett Packard Enterprise grew revenue faster (13.8%, against 3.2%).
- HP kept more of each dollar of sales as operating profit (5.7% operating margin, against −1.3%).
- HP turned more of its sales into free cash flow (5.1% FCF margin, against 1.8%).
- HP earned a higher return on the capital invested in it (55.3%, against −0.9%).
- Investors pay more for each dollar of Hewlett Packard Enterprise’s earnings: a P/E of 30.4x against 13.1x for HP.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Hewlett Packard Enterprise
HPE
2/9
Revenue growth5-year growth
HP
HPQ
7/9
Operating marginNet marginFCF marginReturn on capitalPiotroski F-scoreNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | HPE FY25 | HPQ FY25 |
|---|---|---|
| Size | ||
| Market cap | $85.1B | $31.6B |
| Revenue | $34.3B | $55.3B |
| Free cash flow | $627M | $2.8B |
| Net income | $57.0M | $2.5B |
| Growth | ||
| Revenue growth | 13.8% | 3.2% |
| 5-year growth | 4.9% | −0.5% |
| Share count change | −1.0% | −3.6% |
| Profitability | ||
| Gross margin | — | 20.6% |
| Operating margin | −1.3% | 5.7% |
| Net margin | 0.2% | 4.6% |
| FCF margin | 1.8% | 5.1% |
| Return on capital | −0.9% | 55.3% |
| Return on equity | 0.2% | — |
| Balance sheet | ||
| Net debt | $20.6B | $6.0B |
| Net debt / EBITDA | 9.0x | 1.5x |
| Dividends and buybacks | $886M | $1.9B |
| Valuation & quality | ||
| P/E | 30.4x | 13.1x |
| Piotroski F-score | 4 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.