WallStSmart

Hewlett Packard Enterprise Co (HPE)vsUbiquiti Networks Inc (UI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Hewlett Packard Enterprise Co generates 1054% more annual revenue ($35.74B vs $3.10B). UI leads profitability with a 30.4% profit margin vs -0.3%. HPE appears more attractively valued with a PEG of 0.85. UI earns a higher WallStSmart Score of 65/100 (B-).

HPE

Buy

52

out of 100

Grade: C-

Growth: 5.3Profit: 3.5Value: 7.7Quality: 3.8
Piotroski: 3/9Altman Z: 0.69

UI

Strong Buy

65

out of 100

Grade: B-

Growth: 8.0Profit: 10.0Value: 4.0Quality: 7.3
Piotroski: 5/9Altman Z: 5.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HPEUndervalued (+80.9%)

Margin of Safety

+80.9%

Fair Value

$124.72

Current Price

$34.13

$90.59 discount

UndervaluedFair: $124.72Overvalued
UISignificantly Overvalued (-76.7%)

Margin of Safety

-76.7%

Fair Value

$403.58

Current Price

$660.01

$256.43 premium

UndervaluedFair: $403.58Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HPE3 strengths · Avg: 8.0/10
PEG RatioValuation
0.858/10

Growing faster than its price suggests

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
18.4%8/10

18.4% revenue growth

UI6 strengths · Avg: 9.3/10
Return on EquityProfitability
115.0%10/10

Every $100 of equity generates 115 in profit

Profit MarginProfitability
30.4%10/10

Keeps 30 of every $100 in revenue as profit

Operating MarginProfitability
36.9%10/10

Strong operational efficiency at 36.9%

Altman Z-ScoreHealth
5.1410/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
18.7%8/10

18.7% revenue growth

EPS GrowthGrowth
29.5%8/10

Earnings expanding 29.5% YoY

Areas to Watch

HPE4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-0.5%2/10

ROE of -0.5% — below average capital efficiency

EPS GrowthGrowth
-30.3%2/10

Earnings declined 30.3%

Altman Z-ScoreHealth
0.692/10

Distress zone — elevated risk

UI2 concerns · Avg: 2.0/10
P/E RatioValuation
42.7x2/10

Premium valuation, high expectations priced in

Price/BookValuation
39.3x2/10

Trading at 39.3x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : HPE

The strongest argument for HPE centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 18.4% demonstrates continued momentum. PEG of 0.85 suggests the stock is reasonably priced for its growth.

Bull Case : UI

The strongest argument for UI centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 30.4% and operating margin at 36.9%. Revenue growth of 18.7% demonstrates continued momentum.

Bear Case : HPE

The primary concerns for HPE are Piotroski F-Score, Return on Equity, EPS Growth.

Bear Case : UI

The primary concerns for UI are P/E Ratio, Price/Book. A P/E of 42.7x leaves little room for execution misses.

Key Dynamics to Monitor

UI carries more volatility with a beta of 1.47 — expect wider price swings.

UI is growing revenue faster at 18.7% — sustainability is the question.

HPE generates stronger free cash flow (609M), providing more financial flexibility.

Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.

Bottom Line

UI scores higher overall (65/100 vs 52/100), backed by strong 30.4% margins and 18.7% revenue growth. HPE offers better value entry with a 80.9% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Hewlett Packard Enterprise Co

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

The Hewlett Packard Enterprise Company (HPE) is an American multinational enterprise information technology company based in Houston, Texas, United States.

Ubiquiti Networks Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Ubiquiti Inc. develops network technology for service providers, businesses and consumers. The company is headquartered in New York, New York.

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