AstroNova (NASDAQ:ALOT) versus HP (NYSE:HPQ) Head to Head Survey

AstroNova (NASDAQ:ALOT) and HP (NYSE:HPQ) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Earnings & Valuation

This table compares AstroNova and HP”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AstroNova	$152.17 million	1.49	-$2.38 million	($0.18)	-161.06
HP	$55.30 billion	0.53	$2.53 billion	$2.62	12.47

HP has higher revenue and earnings than AstroNova. AstroNova is trading at a lower price-to-earnings ratio than HP, indicating that it is currently the more affordable of the two stocks.

Dividends

AstroNova pays an annual dividend of $0.28 per share and has a dividend yield of 1.0%. HP pays an annual dividend of $1.20 per share and has a dividend yield of 3.7%. AstroNova pays out -155.6% of its earnings in the form of a dividend. HP pays out 45.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. HP has raised its dividend for 15 consecutive years. HP is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

43.0% of AstroNova shares are held by institutional investors. Comparatively, 77.5% of HP shares are held by institutional investors. 12.6% of AstroNova shares are held by company insiders. Comparatively, 0.2% of HP shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares AstroNova and HP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AstroNova	-0.88%	2.94%	1.61%
HP	4.14%	-947.78%	7.43%

Risk & Volatility

AstroNova has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, HP has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for AstroNova and HP, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AstroNova	1	0	0	0	1.00
HP	5	8	0	2	1.93

HP has a consensus price target of $25.17, indicating a potential downside of 22.94%. Given HP’s stronger consensus rating and higher possible upside, analysts clearly believe HP is more favorable than AstroNova.

Summary

HP beats AstroNova on 13 of the 17 factors compared between the two stocks.

About AstroNova

AstroNova, Inc. designs, develops, manufactures, and distributes specialty printers, and data acquisition and analysis systems in the United States, Europe, Asia, Canada, Central and South America, and internationally. The company operates in two segments, Product Identification (PI) and Test & Measurement (T&M). The PI segment offers tabletop and production-ready digital color label printers, and OEM printing systems under the QuickLabel brand; digital color label mini-presses and inline printing systems under the TrojanLabel brand; and label materials, tags material, inks, toners, and thermal transfer ribbions under the GetLabels brand. This segment also develops and licenses various specialized software programs to design and manage labels and print images; and provides training and support. This segment serves chemicals, cosmetics, food and beverage, medical products, nutraceuticals, pharmaceuticals, and other industries; and brand owners, label converters, commercial printers, and packaging manufacturers. The T&M segment offers airborne printing solutions, such as ToughWriter used to print hard copies of navigation maps, arrival and departure information, flight itineraries, weather maps, performance data, passenger data, and various air traffic control data; ToughSwitch, an ethernet switches used to connect multiple computers or Ethernet devices; TMX data acquisition systems; Daxus DXS-100 distributed data acquisition platform; SmartCorder DDX100 portable data acquisition systems for facility and field testing; and Everest EV-5000, a digital strip chart recording system used primarily in aerospace and defense. This segment serves aerospace and aerospace and defense, automotive, commercial airline, energy, manufacturing, and transportation industries. The company was formerly known as Astro-Med, Inc. and changed its name to AstroNova, Inc. in May 2016. AstroNova, Inc. was incorporated in 1969 and is headquartered in West Warwick, Rhode Island.

About HP

HP Inc. provides products, technologies, software, solutions, and services to individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors worldwide. It operates through Personal Systems and Printing segments. The Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin clients, commercial tablets and mobility devices, retail point-of-sale systems, displays and other related accessories, software, support, and services for the commercial and consumer markets. The Printing segment provides consumer and commercial printer hardware, supplies, media, solutions, and services, as well as scanning devices; and laserJet and enterprise, inkjet and printing, graphics, and 3D printing solutions. The company was formerly known as Hewlett-Packard Company and changed its name to HP Inc. in October 2015. HP Inc. was founded in 1939 and is headquartered in Palo Alto, California.