WallStSmart

HP Inc (HPQ)vsWestern Digital Corporation (WDC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

HP Inc generates 358% more annual revenue ($59.16B vs $12.92B). WDC leads profitability with a 73.0% profit margin vs 4.1%. WDC appears more attractively valued with a PEG of 0.88. WDC earns a higher WallStSmart Score of 79/100 (B+).

HPQ

Buy

52

out of 100

Grade: C-

Growth: 3.3Profit: 6.5Value: 6.7Quality: 5.0
Piotroski: 3/9Altman Z: 1.31

WDC

Strong Buy

79

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 7.0Quality: 7.5
Piotroski: 5/9Altman Z: 5.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HPQUndervalued (+44.4%)

Margin of Safety

+44.4%

Fair Value

$35.52

Current Price

$34.40

$1.12 discount

UndervaluedFair: $35.52Overvalued

Intrinsic value data unavailable for WDC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HPQ4 strengths · Avg: 9.0/10
Return on EquityProfitability
73.6%10/10

Every $100 of equity generates 74 in profit

Debt/EquityHealth
-112.3810/10

Conservative balance sheet, low leverage

P/E RatioValuation
12.5x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.55B8/10

Generating 1.5B in free cash flow

WDC6 strengths · Avg: 10.0/10
Return on EquityProfitability
106.3%10/10

Every $100 of equity generates 106 in profit

Profit MarginProfitability
73.0%10/10

Keeps 73 of every $100 in revenue as profit

Operating MarginProfitability
43.6%10/10

Strong operational efficiency at 43.6%

Revenue GrowthGrowth
43.8%10/10

Revenue surging 43.8% year-over-year

EPS GrowthGrowth
984.0%10/10

Earnings expanding 984.0% YoY

Altman Z-ScoreHealth
5.4910/10

Safe zone — low bankruptcy risk

Areas to Watch

HPQ4 concerns · Avg: 2.5/10
Profit MarginProfitability
4.1%3/10

4.1% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.282/10

Expensive relative to growth rate

EPS GrowthGrowth
-11.3%2/10

Earnings declined 11.3%

WDC1 concerns · Avg: 2.0/10
Price/BookValuation
21.1x2/10

Trading at 21.1x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : HPQ

The strongest argument for HPQ centers on Return on Equity, Debt/Equity, P/E Ratio. Revenue growth of 12.5% demonstrates continued momentum.

Bull Case : WDC

The strongest argument for WDC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 73.0% and operating margin at 43.6%. Revenue growth of 43.8% demonstrates continued momentum.

Bear Case : HPQ

The primary concerns for HPQ are Profit Margin, Piotroski F-Score, PEG Ratio. Thin 4.1% margins leave little buffer for downturns.

Bear Case : WDC

The primary concerns for WDC are Price/Book.

Key Dynamics to Monitor

HPQ profiles as a value stock while WDC is a growth play — different risk/reward profiles.

WDC carries more volatility with a beta of 2.18 — expect wider price swings.

WDC is growing revenue faster at 43.8% — sustainability is the question.

HPQ generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

WDC scores higher overall (79/100 vs 52/100), backed by strong 73.0% margins and 43.8% revenue growth. HPQ offers better value entry with a 44.4% 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.

HP Inc

TECHNOLOGY · COMPUTER HARDWARE · USA

HP Inc. is an American multinational information technology company headquartered in Palo Alto, California, that develops personal computers (PCs), printers and related supplies, as well as 3D printing solutions.

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Western Digital Corporation

TECHNOLOGY · COMPUTER HARDWARE · USA

Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.

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