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XRX vs HPQ
Revenue, margins, valuation, and 5-year total return — side by side.
Computer Hardware
XRX vs HPQ — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Information Technology Services | Computer Hardware |
| Market Cap | $343M | $19.64B |
| Revenue (TTM) | $7.41B | $56.23B |
| Net Income (TTM) | $-1.04B | $2.51B |
| Gross Margin | 25.7% | 20.1% |
| Operating Margin | -0.6% | 5.7% |
| Forward P/E | 5.7x | 7.5x |
| Total Debt | $4.25B | $10.88B |
| Cash & Equiv. | $512M | $3.69B |
XRX vs HPQ — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Xerox Holdings Corp… (XRX) | 100 | 16.5 | -83.5% |
| HP Inc. (HPQ) | 100 | 141.4 | +41.4% |
Price return only. Dividends and distributions are not included.
Quick Verdict: XRX vs HPQ
Each card shows where this stock fits in a portfolio — not just who wins on paper.
XRX is the clearest fit if your priority is growth exposure and defensive.
- Rev growth 12.9%, EPS growth 23.3%, 3Y rev CAGR -0.4%
- Beta 2.68, yield 21.4%, current ratio 1.12x
- 12.9% revenue growth vs HPQ's 3.2%
HPQ carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 9 yrs, beta 1.02, yield 5.3%
- 158.0% 10Y total return vs XRX's -42.2%
- Lower volatility, beta 1.02, current ratio 0.77x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 12.9% revenue growth vs HPQ's 3.2% | |
| Value | Lower P/E (5.7x vs 7.5x) | |
| Quality / Margins | 4.5% margin vs XRX's -14.1% | |
| Stability / Safety | Beta 1.02 vs XRX's 2.68 | |
| Dividends | 21.4% yield, vs HPQ's 5.3% | |
| Momentum (1Y) | -11.9% vs XRX's -49.7% | |
| Efficiency (ROA) | 6.0% ROA vs XRX's -10.8%, ROIC 41.2% vs -1.0% |
XRX vs HPQ — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
XRX vs HPQ — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
HPQ leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
HPQ is the larger business by revenue, generating $56.2B annually — 7.6x XRX's $7.4B. HPQ is the more profitable business, keeping 4.5% of every revenue dollar as net income compared to XRX's -14.1%. On growth, XRX holds the edge at +26.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $7.4B | $56.2B |
| EBITDAEarnings before interest/tax | $330M | $4.1B |
| Net IncomeAfter-tax profit | -$1.0B | $2.5B |
| Free Cash FlowCash after capex | $267M | $2.9B |
| Gross MarginGross profit ÷ Revenue | +25.7% | +20.1% |
| Operating MarginEBIT ÷ Revenue | -0.6% | +5.7% |
| Net MarginNet income ÷ Revenue | -14.1% | +4.5% |
| FCF MarginFCF ÷ Revenue | +3.6% | +5.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +26.7% | +6.9% |
| EPS Growth (YoY)Latest quarter vs prior year | -13.3% | -1.7% |
Valuation Metrics
XRX leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
On an enterprise value basis, HPQ's 5.9x EV/EBITDA is more attractive than XRX's 14.8x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $343M | $19.6B |
| Enterprise ValueMkt cap + debt − cash | $4.1B | $26.8B |
| Trailing P/EPrice ÷ TTM EPS | -0.32x | 8.08x |
| Forward P/EPrice ÷ next-FY EPS est. | 5.69x | 7.49x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.40x |
| EV / EBITDAEnterprise value multiple | 14.83x | 5.91x |
| Price / SalesMarket cap ÷ Revenue | 0.05x | 0.36x |
| Price / BookPrice ÷ Book value/share | 0.49x | — |
| Price / FCFMarket cap ÷ FCF | 1.32x | 7.01x |
Profitability & Efficiency
HPQ leads this category, winning 6 of 8 comparable metrics.
Profitability & Efficiency
HPQ delivers a 73.6% return on equity — every $100 of shareholder capital generates $74 in annual profit, vs $-142 for XRX. On the Piotroski fundamental quality scale (0–9), HPQ scores 6/9 vs XRX's 3/9, reflecting solid financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | -142.4% | +73.6% |
| ROA (TTM)Return on assets | -10.8% | +6.0% |
| ROICReturn on invested capital | -1.0% | +41.2% |
| ROCEReturn on capital employed | -0.9% | +30.5% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 6 |
| Debt / EquityFinancial leverage | 6.31x | — |
| Net DebtTotal debt minus cash | $3.7B | $7.2B |
| Cash & Equiv.Liquid assets | $512M | $3.7B |
| Total DebtShort + long-term debt | $4.2B | $10.9B |
| Interest CoverageEBIT ÷ Interest expense | -0.14x | 6.25x |
Total Returns (Dividends Reinvested)
HPQ leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in HPQ five years ago would be worth $7,635 today (with dividends reinvested), compared to $2,712 for XRX. Over the past 12 months, HPQ leads with a -11.9% total return vs XRX's -49.7%. The 3-year compound annual growth rate (CAGR) favors HPQ at -6.4% vs XRX's -32.2% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +7.5% | -1.9% |
| 1-Year ReturnPast 12 months | -49.7% | -11.9% |
| 3-Year ReturnCumulative with dividends | -68.8% | -17.9% |
| 5-Year ReturnCumulative with dividends | -72.9% | -23.6% |
| 10-Year ReturnCumulative with dividends | -42.2% | +158.0% |
| CAGR (3Y)Annualised 3-year return | -32.2% | -6.4% |
Risk & Volatility
HPQ leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
HPQ is the less volatile stock with a 1.02 beta — it tends to amplify market swings less than XRX's 2.68 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. HPQ currently trades 72.5% from its 52-week high vs XRX's 38.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.68x | 1.02x |
| 52-Week HighHighest price in past year | $6.80 | $29.55 |
| 52-Week LowLowest price in past year | $1.19 | $17.56 |
| % of 52W HighCurrent price vs 52-week peak | +38.5% | +72.5% |
| RSI (14)Momentum oscillator 0–100 | 75.7 | 64.2 |
| Avg Volume (50D)Average daily shares traded | 5.5M | 17.7M |
Analyst Outlook
Evenly matched — XRX and HPQ each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates XRX as "Sell" and HPQ as "Hold". Consensus price targets imply 291.2% upside for XRX (target: $10) vs -7.5% for HPQ (target: $20). For income investors, XRX offers the higher dividend yield at 21.43% vs HPQ's 5.33%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Sell | Hold |
| Price TargetConsensus 12-month target | $10.25 | $19.80 |
| # AnalystsCovering analysts | 5 | 52 |
| Dividend YieldAnnual dividend ÷ price | +21.4% | +5.3% |
| Dividend StreakConsecutive years of raises | 0 | 9 |
| Dividend / ShareAnnual DPS | $0.56 | $1.14 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +4.3% |
HPQ leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). XRX leads in 1 (Valuation Metrics). 1 tied.
XRX vs HPQ: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is XRX or HPQ a better buy right now?
For growth investors, Xerox Holdings Corporation (XRX) is the stronger pick with 12.
9% revenue growth year-over-year, versus 3. 2% for HP Inc. (HPQ). HP Inc. (HPQ) offers the better valuation at 8. 1x trailing P/E (7. 5x forward), making it the more compelling value choice. Analysts rate HP Inc. (HPQ) a "Hold" — based on 52 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — XRX or HPQ?
On forward P/E, Xerox Holdings Corporation is actually cheaper at 5.
7x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — XRX or HPQ?
Over the past 5 years, HP Inc.
(HPQ) delivered a total return of -23. 6%, compared to -72. 9% for Xerox Holdings Corporation (XRX). Over 10 years, the gap is even starker: HPQ returned +158. 0% versus XRX's -42. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — XRX or HPQ?
By beta (market sensitivity over 5 years), HP Inc.
(HPQ) is the lower-risk stock at 1. 02β versus Xerox Holdings Corporation's 2. 68β — meaning XRX is approximately 163% more volatile than HPQ relative to the S&P 500.
05Which is growing faster — XRX or HPQ?
By revenue growth (latest reported year), Xerox Holdings Corporation (XRX) is pulling ahead at 12.
9% versus 3. 2% for HP Inc. (HPQ). On earnings-per-share growth, the picture is similar: Xerox Holdings Corporation grew EPS 23. 3% year-over-year, compared to -5. 7% for HP Inc.. Over a 3-year CAGR, XRX leads at -0. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — XRX or HPQ?
HP Inc.
(HPQ) is the more profitable company, earning 4. 6% net margin versus -14. 7% for Xerox Holdings Corporation — meaning it keeps 4. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HPQ leads at 6. 6% versus -0. 8% for XRX. At the gross margin level — before operating expenses — XRX leads at 27. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is XRX or HPQ more undervalued right now?
On forward earnings alone, Xerox Holdings Corporation (XRX) trades at 5.
7x forward P/E versus 7. 5x for HP Inc. — 1. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for XRX: 291. 2% to $10. 25.
08Which pays a better dividend — XRX or HPQ?
All stocks in this comparison pay dividends.
Xerox Holdings Corporation (XRX) offers the highest yield at 21. 4%, versus 5. 3% for HP Inc. (HPQ).
09Is XRX or HPQ better for a retirement portfolio?
For long-horizon retirement investors, HP Inc.
(HPQ) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 02), 5. 3% yield, +158. 0% 10Y return). Xerox Holdings Corporation (XRX) carries a higher beta of 2. 68 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (HPQ: +158. 0%, XRX: -42. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between XRX and HPQ?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: XRX is a small-cap income-oriented stock; HPQ is a mid-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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