WallStSmart

HP Inc (HPQ)vsWestern Digital Corporation (WDC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

HP Inc generates 388% more annual revenue ($57.42B vs $11.78B). WDC leads profitability with a 55.3% profit margin vs 4.5%. WDC appears more attractively valued with a PEG of 0.53. WDC earns a higher WallStSmart Score of 80/100 (A-).

HPQ

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 6.5Value: 7.3Quality: 5.0
Piotroski: 3/9Altman Z: 1.31

WDC

Exceptional Buy

80

out of 100

Grade: A-

Growth: 7.3Profit: 9.5Value: 5.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HPQUndervalued (+42.7%)

Margin of Safety

+42.7%

Fair Value

$34.47

Current Price

$25.58

$8.89 discount

UndervaluedFair: $34.47Overvalued

Intrinsic value data unavailable for WDC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HPQ3 strengths · Avg: 10.0/10
P/E RatioValuation
9.3x10/10

Attractively priced relative to earnings

Return on EquityProfitability
73.6%10/10

Every $100 of equity generates 74 in profit

Debt/EquityHealth
-67.1310/10

Conservative balance sheet, low leverage

WDC6 strengths · Avg: 10.0/10
Market CapQuality
$204.78B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
67.0%10/10

Every $100 of equity generates 67 in profit

Profit MarginProfitability
55.3%10/10

Keeps 55 of every $100 in revenue as profit

Operating MarginProfitability
37.0%10/10

Strong operational efficiency at 37.0%

Revenue GrowthGrowth
45.5%10/10

Revenue surging 45.5% year-over-year

EPS GrowthGrowth
482.9%10/10

Earnings expanding 482.9% YoY

Areas to Watch

HPQ4 concerns · Avg: 2.5/10
Profit MarginProfitability
4.5%3/10

4.5% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
21.032/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.312/10

Distress zone — elevated risk

WDC3 concerns · Avg: 3.3/10
P/E RatioValuation
35.5x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.514/10

Distress zone — elevated risk

Price/BookValuation
27.5x2/10

Trading at 27.5x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : HPQ

The strongest argument for HPQ centers on P/E Ratio, Return on Equity, Debt/Equity.

Bull Case : WDC

The strongest argument for WDC centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 55.3% and operating margin at 37.0%. Revenue growth of 45.5% demonstrates continued momentum.

Bear Case : HPQ

The primary concerns for HPQ are Profit Margin, Piotroski F-Score, PEG Ratio. Thin 4.5% margins leave little buffer for downturns.

Bear Case : WDC

The primary concerns for WDC are P/E Ratio, Altman Z-Score, 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 2.16 — expect wider price swings.

WDC is growing revenue faster at 45.5% — sustainability is the question.

WDC generates stronger free cash flow (978M), providing more financial flexibility.

Bottom Line

WDC scores higher overall (80/100 vs 56/100), backed by strong 55.3% margins and 45.5% revenue growth. HPQ offers better value entry with a 42.7% margin of safety. Both earn "Exceptional 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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