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HPE vs MCHP

HPE
Hewlett Packard Enterprise Company
NEUTRAL
Price
$28.62
Market Cap
$37.97B
Sector
Technology
AI Confidence
85%
MCHP
Microchip Technology Incorporated
NEUTRAL
Price
$64.61
Market Cap
$34.96B
Sector
Technology
AI Confidence
90%

Valuation

P/E Ratio
HPE
--
MCHP
--
Forward P/E
HPE
10.52
MCHP
24.28
P/B Ratio
HPE
1.54
MCHP
5.33
P/S Ratio
HPE
1.06
MCHP
8.0
EV/EBITDA
HPE
11.22
MCHP
40.94

Profitability

Gross Margin
HPE
32.07%
MCHP
55.41%
Operating Margin
HPE
7.64%
MCHP
13.2%
Profit Margin
HPE
-0.33%
MCHP
-1.57%
ROE
HPE
-0.47%
MCHP
-1.09%
ROA
HPE
1.61%
MCHP
1.16%

Growth

Revenue Growth
HPE
18.4%
MCHP
15.6%
Earnings Growth
HPE
-30.3%
MCHP
--

Financial Health

Debt/Equity
HPE
0.87
MCHP
0.82
Current Ratio
HPE
1.03
MCHP
2.16
Quick Ratio
HPE
0.56
MCHP
0.93

Dividends

Dividend Yield
HPE
1.99%
MCHP
3.03%
Payout Ratio
HPE
61.18%
MCHP
317.72%

AI Verdict

HPE NEUTRAL

HPE presents a stark contrast between strong market momentum and deteriorating fundamental health, highlighted by a weak Piotroski F-Score of 2/9. While revenue growth is robust at 18.4% and the stock has seen a 78% one-year gain, negative profit margins and a low quick ratio (0.56) indicate significant operational stress. The valuation appears attractive on a forward P/E (10.52) and PEG (0.85) basis, but the current price of $28.62 has already exceeded the analyst target price of $26.75. Heavy insider selling by the CEO and other officers further dampens the outlook despite consistent earnings beats.

Strengths
Strong top-line revenue growth of 18.4% YoY
Attractive PEG ratio of 0.85 suggesting growth is undervalued
Consistent track record of beating quarterly earnings estimates
Risks
Critical financial health weakness (Piotroski F-Score 2/9)
Negative net profit margins (-0.33%) and negative ROE (-0.47%)
Poor liquidity indicated by a quick ratio of 0.56
MCHP NEUTRAL

MCHP shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Strong revenue growth of 15.6%
Risks
Low profit margin of -1.6%
Weak ROE of -1.1%

Compare Another Pair

HPE vs MCHP: Head-to-Head Comparison

This page compares Hewlett Packard Enterprise Company (HPE) and Microchip Technology Incorporated (MCHP) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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