In the evolving landscape of computer hardware, Pure Storage, Inc. (PSTG) and HP Inc. (HPQ) stand out as key players with distinct approaches. Pure Storage focuses on cutting-edge data storage solutions, emphasizing innovation in flash technology and cloud integration. Meanwhile, HP Inc. offers a broad portfolio spanning personal computing and printing, leveraging its legacy and scale. This article will analyze both companies to help you identify the most compelling investment opportunity.
Table of contents
Companies Overview
I will begin the comparison between Pure Storage and HP Inc. by providing an overview of these two companies and their main differences.
Pure Storage Overview
Pure Storage, Inc. focuses on providing advanced data storage technologies and services globally. Its portfolio includes innovative products like FlashArray and FlashBlade, designed for various data workloads, alongside subscription services such as evergreen storage and Pure as-a-Service. Positioned in the computer hardware industry, Pure Storage emphasizes enterprise-class data services including data reduction, protection, and encryption, catering primarily to enterprise clients.
HP Inc. Overview
HP Inc. operates in the computer hardware sector, offering a broad range of personal computing devices, printing products, and related services worldwide. Its operations are divided into Personal Systems, Printing, and Corporate Investments segments, serving individual consumers, businesses, and large enterprises across multiple industries. Founded in 1939, HP maintains a strong market presence with a diverse product line including desktops, notebooks, printers, and software solutions.
Key similarities and differences
Both Pure Storage and HP Inc. operate in the technology sector with a focus on computer hardware, serving global markets with hardware and technology services. However, Pure Storage specializes in data storage solutions and related software for enterprise clients, while HP provides a wider array of personal computing and printing products, targeting a broader customer base including consumers and enterprises. Their business models differ in product focus, with Pure Storage leaning towards subscription and cloud-native solutions and HP emphasizing hardware sales and support services.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for Pure Storage, Inc. and HP Inc. for the fiscal year 2025.
| Metric | Pure Storage, Inc. (PSTG) | HP Inc. (HPQ) |
|---|---|---|
| Market Cap | 24.7B | 19.7B |
| Revenue | 3.17B | 55.3B |
| EBITDA | 282M | 4.09B |
| EBIT | 156M | 3.17B |
| Net Income | 107M | 2.53B |
| EPS | 0.33 | 2.67 |
| Fiscal Year | 2025 | 2025 |
Income Statement Interpretations
Pure Storage, Inc.
Pure Storage’s revenue grew significantly from 1.68B in 2021 to 3.17B in 2025, reflecting an 88.11% increase overall. Net income also improved markedly, turning positive in 2023 and reaching 107M in 2025. Gross margins remained strong and favorable at nearly 70%, with net margins improving substantially in the latest year, indicating enhanced profitability and operational efficiency.
HP Inc.
HP’s revenue showed a slight decline over the period, from 63.46B in 2021 to 55.30B in 2025, a negative trend of about 12.87%. Net income also decreased sharply, falling from 6.54B in 2021 to 2.53B in 2025. Margins were stable but lower in comparison, with a gross margin around 20% and net margin near 4.6%, showing contraction and less favorable growth dynamics recently.
Which one has the stronger fundamentals?
Pure Storage demonstrates stronger fundamentals with robust revenue and net income growth, improving margins, and a largely favorable income statement evaluation. Conversely, HP faces declining revenues and profits, with several unfavorable growth metrics and margin contractions. Overall, Pure Storage’s financial trends suggest a stronger operational and profitability profile compared to HP’s recent performance.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Pure Storage, Inc. (PSTG) and HP Inc. (HPQ) based on their most recent fiscal year data.
| Ratios | Pure Storage, Inc. (2025) | HP Inc. (2025) |
|---|---|---|
| ROE | 8.17% | -730.92% |
| ROIC | 2.45% | 24.97% |
| P/E | 206.9 | 10.35 |
| P/B | 16.90 | -75.65 |
| Current Ratio | 1.61 | 0.77 |
| Quick Ratio | 1.58 | 0.48 |
| D/E (Debt-to-Equity) | 0.22 | -31.45 |
| Debt-to-Assets | 7.09% | 26.05% |
| Interest Coverage | 10.91 | 7.16 |
| Asset Turnover | 0.80 | 1.32 |
| Fixed Asset Turnover | 5.21 | 13.23 |
| Payout Ratio | 0% | 43.0% |
| Dividend Yield | 0% | 4.16% |
Interpretation of the Ratios
Pure Storage, Inc.
Pure Storage shows a mixed ratio profile with 43% favorable and 43% unfavorable indicators, reflecting a neutral overall stance. Key concerns include a weak net margin of 3.37% and high valuation multiples (PE at 207 and PB at 16.9). The company maintains a solid liquidity position and low leverage. Pure Storage does not pay dividends, likely focusing on growth and reinvestment.
HP Inc.
HP Inc. exhibits predominantly favorable ratios at 71%, indicating overall financial strength. It boasts a robust return on invested capital of 24.97% and a reasonable PE of 10.35. However, liquidity ratios are weak (current ratio at 0.77). HP offers a dividend yield of 4.16%, supported by share buybacks and free cash flow, with manageable risks related to payout sustainability.
Which one has the best ratios?
Based on the evaluations, HP Inc. holds the advantage with a stronger ratio profile, highlighted by superior profitability metrics and dividend returns. Pure Storage, while showing stability in liquidity and leverage, faces challenges with profitability and valuation. Thus, HP Inc.’s ratios appear more favorable for assessing financial health in 2025.
Strategic Positioning
This section compares the strategic positioning of Pure Storage and HP Inc. regarding market position, key segments, and exposure to technological disruption:
Pure Storage
- Mid-sized market cap in computer hardware with moderate beta and competitive pressure.
- Focuses on data storage technologies, hardware, and subscription services including AI infrastructure.
- Exposure through advanced flash storage and cloud-native Kubernetes management solutions.
HP Inc.
- Large market cap, broad industry presence, facing significant competitive pressure.
- Diversified segments: Personal Systems, Printing, and Corporate Investments.
- Exposure linked to personal computing, printing hardware, and innovation in corporate investments.
Pure Storage vs HP Inc. Positioning
Pure Storage maintains a concentrated focus on innovative data storage and cloud solutions, while HP Inc. operates a diversified portfolio spanning personal systems and printing. Pure Storage’s niche approach offers specialization; HP’s scale provides broader market reach but with slower growth.
Which has the best competitive advantage?
HP Inc. shows a slightly favorable moat with value creation despite declining ROIC, indicating some sustained competitive advantage. Pure Storage’s moat is slightly unfavorable, shedding value but with growing profitability, reflecting riskier investment potential.
Stock Comparison
The stock price movements of Pure Storage, Inc. and HP Inc. over the past 12 months reveal contrasting trading dynamics, with Pure Storage showing strong gains despite recent weakness, while HP Inc. reflects a consistent downward trajectory.
Trend Analysis
Pure Storage, Inc. experienced a bullish trend over the past year with an 85.88% price increase, although the momentum has decelerated. The stock peaked at 98.7 and bottomed at 37.18, showing high volatility with a 12.83 standard deviation.
HP Inc. exhibited a bearish trend, declining 27.98% over the same period with decelerating losses. Its price fluctuated between 21.08 and 38.13, reflecting lower volatility at a 4.65 standard deviation.
Comparing both stocks, Pure Storage delivered the highest market performance with a strong overall price increase, while HP Inc. showed sustained negative returns during the analyzed timeframe.
Target Prices
Analysts present a clear consensus on target prices for Pure Storage, Inc. and HP Inc., reflecting their expectations for future performance.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Pure Storage, Inc. | 105 | 60 | 91.15 |
| HP Inc. | 30 | 20 | 24.8 |
The target consensus for Pure Storage at 91.15 suggests upside potential from its current price of 75.41, while HP Inc.’s consensus of 24.8 is modestly above its current price of 21.08, indicating moderate growth expectations.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Pure Storage, Inc. (PSTG) and HP Inc. (HPQ):
Rating Comparison
PSTG Rating
- Rated B- with a very favorable status overall.
- Discounted Cash Flow Score: 3, moderate valuation outlook.
- Return on Equity Score: 3, moderate efficiency in generating profit from equity.
- Return on Assets Score: 3, moderate asset utilization.
- Debt To Equity Score: 3, moderate financial risk level.
- Overall Score: 2, moderate overall financial standing.
HPQ Rating
- Rated B- with a very favorable status overall.
- Discounted Cash Flow Score: 4, favorable valuation outlook.
- Return on Equity Score: 1, very unfavorable efficiency.
- Return on Assets Score: 4, favorable asset utilization.
- Debt To Equity Score: 1, very unfavorable financial risk level.
- Overall Score: 2, moderate overall financial standing.
Which one is the best rated?
Both PSTG and HPQ hold a B- rating with a very favorable status and moderate overall scores. HPQ leads on discounted cash flow and return on assets, while PSTG has stronger return on equity and debt-to-equity scores, reflecting differing strengths in financial metrics.
Scores Comparison
The following table compares the Altman Z-Score and Piotroski Score for Pure Storage, Inc. and HP Inc.:
Pure Storage Scores
- Altman Z-Score: 5.91, indicating a safe zone status.
- Piotroski Score: 5, classified as average financial strength.
HP Inc. Scores
- Altman Z-Score: 1.60, indicating distress zone.
- Piotroski Score: 6, classified as average financial strength.
Which company has the best scores?
Pure Storage shows a significantly higher Altman Z-Score, placing it in the safe zone, while HP Inc. falls in the distress zone. Both companies have average Piotroski Scores, with HP Inc. slightly higher at 6 versus 5 for Pure Storage.
Grades Comparison
Here is a detailed comparison of the latest grades assigned to Pure Storage, Inc. and HP Inc. by reputable grading companies:
Pure Storage, Inc. Grades
The table below summarizes recent grades assigned to Pure Storage, Inc. by major financial institutions.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Sell | 2025-12-03 |
| Barclays | Maintain | Equal Weight | 2025-12-03 |
| Needham | Maintain | Buy | 2025-12-03 |
| Susquehanna | Downgrade | Neutral | 2025-12-03 |
| JP Morgan | Maintain | Overweight | 2025-12-03 |
| Citigroup | Maintain | Buy | 2025-12-03 |
| Wedbush | Maintain | Outperform | 2025-12-03 |
| Lake Street | Maintain | Buy | 2025-12-03 |
| JP Morgan | Maintain | Overweight | 2025-11-17 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-17 |
Overall, Pure Storage’s grades show a mixed but generally positive pattern, with multiple buy and overweight ratings alongside some sell and neutral assessments.
HP Inc. Grades
The table below presents recent grades for HP Inc. from recognized financial analysts.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Goldman Sachs | Maintain | Neutral | 2025-11-26 |
| Evercore ISI Group | Maintain | In Line | 2025-11-26 |
| Citigroup | Maintain | Neutral | 2025-11-26 |
| Morgan Stanley | Maintain | Underweight | 2025-11-26 |
| JP Morgan | Maintain | Neutral | 2025-11-26 |
| Barclays | Maintain | Equal Weight | 2025-11-26 |
| TD Cowen | Maintain | Hold | 2025-11-26 |
| UBS | Maintain | Neutral | 2025-11-26 |
| Morgan Stanley | Maintain | Underweight | 2025-11-21 |
| B of A Securities | Maintain | Neutral | 2025-11-21 |
HP Inc.’s grading trend is predominantly neutral to cautious, with several underweight and hold ratings, indicating a conservative stance by analysts.
Which company has the best grades?
Pure Storage, Inc. has received generally more favorable grades, including multiple buy and outperform ratings, compared to HP Inc.’s mainly neutral or underweight grades. This difference may influence investors’ perception of growth potential and risk profile between the two.
Strengths and Weaknesses
Below is a comparison table outlining the key strengths and weaknesses of Pure Storage, Inc. (PSTG) and HP Inc. (HPQ) based on their recent financial performance, innovation, market presence, and diversification.
| Criterion | Pure Storage, Inc. (PSTG) | HP Inc. (HPQ) |
|---|---|---|
| Diversification | Moderate: Focused on storage products and services, less diversified. | High: Diverse segments including Personal Systems, Printing, and Corporate Investments. |
| Profitability | Low profitability: ROIC 2.45%, net margin 3.37%, shedding value overall. | Strong profitability: ROIC 24.97%, positive net margin 4.57%, creating value but declining trend. |
| Innovation | Growing ROIC trend suggests improving innovation and efficiency. | Established innovation with high asset turnover but declining ROIC trend. |
| Global presence | Moderate global reach, primarily in data storage markets. | Extensive global presence across multiple hardware and printing markets. |
| Market Share | Niche leader in storage solutions but limited scale. | Large market share in personal systems and printing segments. |
Key takeaways: HP Inc. offers greater diversification and stronger profitability, despite a declining ROIC trend. Pure Storage shows improving profitability but still struggles with value creation and narrower market focus. Investors should weigh growth potential at PSTG against HPQ’s established scale and broader product base.
Risk Analysis
Below is a comparative table outlining key risk factors for Pure Storage, Inc. (PSTG) and HP Inc. (HPQ) based on the most recent data from 2025:
| Metric | Pure Storage, Inc. (PSTG) | HP Inc. (HPQ) |
|---|---|---|
| Market Risk | Beta 1.26, moderate volatility | Beta 1.22, moderate volatility |
| Debt level | Low debt-to-assets 7.1%, favorable | Moderate debt-to-assets 26.1%, favorable due to coverage |
| Regulatory Risk | Standard tech industry compliance | Standard tech industry compliance |
| Operational Risk | Moderate, smaller scale (6K employees) | Higher, larger scale (58K employees) and complex segments |
| Environmental Risk | Moderate, tech hardware footprint | Moderate, printing and manufacturing impact |
| Geopolitical Risk | Exposure to US and international markets | Exposure to US and global markets |
The most impactful risk for Pure Storage is market volatility amplified by its high valuation multiples and moderate profitability, posing pressure if growth slows. HP faces operational and financial distress risks, evidenced by a low Altman Z-score and weaker liquidity ratios, despite stronger asset returns. Investors should monitor HP’s bankruptcy risk signals closely while considering Pure Storage’s growth sustainability.
Which Stock to Choose?
Pure Storage, Inc. (PSTG) shows strong income growth with an 11.92% revenue increase in 2025 and favorable profitability trends, despite some neutral financial ratios and a slightly unfavorable MOAT due to value destruction but growing ROIC. Its debt levels are low, and it holds a very favorable B- rating overall.
HP Inc. (HPQ) exhibits a less favorable income trajectory with negative overall growth and several unfavorable income statement metrics, though it maintains a favorable global financial ratios evaluation and a slightly favorable MOAT as it creates value despite declining ROIC. Its debt ratios are favorable, but liquidity ratios are weak; it also holds a very favorable B- rating.
Investors focused on growth might find PSTG appealing due to its strong income growth and improving profitability, while those prioritizing value creation and solid financial ratios could see HPQ as more favorable, given its value-creating MOAT and favorable ratio profile despite income challenges.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Pure Storage, Inc. and HP Inc. to enhance your investment decisions:
