HPE vs DELL Stock Comparison: AI Score, Valuation, Performance and Upside
HPE and Dell both compete in enterprise AI server infrastructure, but Dell has executed more aggressively on PowerEdge AI server orders and has a much larger direct sales footprint. HPE's differentiation lies in HPC via Cray, the GreenLake as-a-service model, and Aruba networking. Dell is a larger, more diversified company with a PC business providing a second growth lever; HPE is more focused on enterprise hybrid cloud and HPC.
HPE vs Dell is a comparison of two enterprise infrastructure incumbents with different AI server execution and business model strategies — Dell's direct sales strength and AI server backlog make it a purer AI infrastructure play, while HPE's GreenLake ARR model offers a path to higher-margin recurring revenue if enterprise cloud adoption accelerates.
DELL holds the edge across 3 of 5 key metrics in this comparison. DELL has delivered stronger 1-year price return (+360.84% vs +149.86%), though HPE has the better forward P/E setup (12.81x vs 17.51x for DELL). DELL leads on both revenue growth (87.50%) and operating margin (8.86%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for HPE (+24.92%) than for DELL (+20.46%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- prefer a cloud-services transition story with GreenLake recurring revenue model growing over time
- value exposure to HPC and AI supercomputers for government and research markets via Cray
- want enterprise networking (Aruba) as a second growth driver alongside server infrastructure
- are comfortable with slower near-term AI server execution relative to Dell in exchange for higher-margin service revenue potential
- prefer a more direct and immediate play on enterprise AI server demand through PowerEdge GPU systems
- value a broad direct sales force with deep enterprise relationships as a competitive moat
- want combined exposure to AI infrastructure and PC market recovery across two segments
- are comfortable with lower gross margins in AI servers and GPU supply chain timing risk
| Metric | HPE | DELL |
|---|---|---|
| AI scorei | 70.8 | 83.7 |
| AI ranki | #38 | #7 |
| Latest closei | $61.04 | $588.40 |
| 1M returni | +9.61% | +25.55% |
| 6M returni | +175.95% | +275.35% |
| 1Y returni | +149.86% | +360.84% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | HPE | DELL |
|---|---|---|
| 1Y ago | $24.68K (+146.8%) started 2025-09-17 | $45.14K (+351.4%) started 2025-09-17 |
| 5Y ago | $56.99K (+469.9%) started 2021-09-20 | $135.19K (+1251.9%) started 2021-09-20 |
| 10Y ago | $78.98K (+689.8%) started 2016-09-19 | $505.08K (+4950.8%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | HPE | DELL |
|---|---|---|
| Market capi | $69.27B | $298.3B |
| Trailing P/Ei | 48.89 | 36.82 |
| Forward P/Ei | 12.81 | 17.51 |
| Price/Salesi | N/A | N/A |
| EV/Revenuei | 2.20 | 2.21 |
| Analyst targeti | $65.35 | $556.13 |
| Target upsidei | +24.92% | +20.46% |
| Metric | HPE | DELL |
|---|---|---|
| Revenue growthi | 40.00% | 87.50% |
| Earnings growthi | -30.30% | 282.50% |
| EPS growthi | -30.30% | +282.50% |
| FCF margini | +9.89% | +4.06% |
| Operating margini | 8.70% | 8.86% |
| Profit margini | 4.01% | 6.28% |
| ROIC proxyi | 6.31% | N/A |
| Return on equityi | 6.31% | N/A |
| Dividend yieldi | 1.09% | 0.55% |
| Payout ratioi | 28.74% | 13.44% |
| Dividend growth streaki | No increase yet | No increase yet |
| Betai | 1.44 | 1.40 |
| Debt/equityi | 84.03 | N/A |
| Current ratioi | 1.09 | 0.95 |
| Quick ratioi | 0.57 | 0.61 |
Over the past year, HPE and DELL have moved moderately in the same direction (correlation of 0.66), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | HPE | DELL |
|---|---|---|---|
| 1Y | Growthi | +146.83% | +351.43% |
| CAGRi | +147.15% | +352.41% | |
| Volatilityi | 57.08% | 75.07% | |
| Sharpe ratioi | 1.79 | 2.32 | |
| Sortino ratioi | 2.99 | 4.54 | |
| Max drawdowni | 26.57% | 32.64% | |
| Current drawdowni | 1.69% | 0.00% | |
| Avg drawdowni | 10.36% | 11.41% | |
| Ulcer Indexi | 12.40% | 14.95% | |
| Max daily dropi | 10.76% | 9.80% | |
| Max wkly dropi | 17.52% | 16.33% | |
| 5Y | Growthi | +410.62% | +1145.90% |
| CAGRi | +38.63% | +65.74% | |
| Volatilityi | 41.55% | 53.81% | |
| Sharpe ratioi | 0.89 | 1.12 | |
| Sortino ratioi | 1.36 | 1.86 | |
| Max drawdowni | 48.36% | 59.59% | |
| Current drawdowni | 1.69% | 0.00% | |
| Avg drawdowni | 11.04% | 20.04% | |
| Ulcer Indexi | 14.07% | 24.60% | |
| Max daily dropi | 15.14% | 18.99% | |
| Max wkly dropi | 20.76% | 23.19% | |
| 10Y | Growthi | +495.10% | +4554.79% |
| CAGRi | +19.54% | +46.85% | |
| Volatilityi | 38.36% | 45.38% | |
| Sharpe ratioi | 0.54 | 0.97 | |
| Sortino ratioi | 0.79 | 1.52 | |
| Max drawdowni | 56.87% | 59.59% | |
| Current drawdowni | 1.69% | 0.00% | |
| Avg drawdowni | 14.88% | 15.37% | |
| Ulcer Indexi | 19.20% | 20.86% | |
| Max daily dropi | 15.31% | 21.64% | |
| Max wkly dropi | 28.21% | 23.70% |
| Category | HPE | DELL |
|---|---|---|
| Company | Hewlett Packard Enterprise Company | Dell Technologies Inc. |
| Sector | Technology | Technology |
| Industry | Communication Equipment | Computer Hardware |
| Core business | Hewlett Packard Enterprise (HPE) sells enterprise compute, storage, networking, and hybrid cloud solutions. Its GreenLake cloud platform provides on-premises infrastructure as a service, creating recurring subscription revenue. HPE's AI-focused product line includes the Cray supercomputer (renamed HPE Cray) and ProLiant servers, both of which address AI and high-performance computing (HPC) deployments at government labs, research institutions, and enterprises. | Dell Technologies is a diversified technology company with two major segments: Infrastructure Solutions Group (ISG), which sells servers, storage, and networking including AI-optimized PowerEdge servers; and Client Solutions Group (CSG), which sells PCs and workstations. Dell's ISG has captured significant AI server orders as enterprises and hyperscalers buy NVIDIA GPU-equipped PowerEdge systems. Dell's direct sales model and broad enterprise relationships create strong pipeline access. |
| Investor focus | Investors track GreenLake annual recurring revenue (ARR) growth, AI server and HPC order backlog, gross margin trends amid server pricing competition, and operating leverage as the services and software mix grows. | Investors focus on ISG revenue growth and backlog (especially AI server orders), CSG revenue recovery from the PC refresh cycle, gross margin sustainability as GPU server mix increases (lower margins than traditional servers), and capital allocation including buybacks and dividends. |
- GreenLake HPCaaS and as-a-service model creates recurring revenue and customer lock-in
- Strong position in AI/HPC via Cray supercomputers, with orders from U.S. national labs and research institutions
- Networking business (Aruba) provides enterprise WLAN and campus switching revenue with recurring software attach
- Dominant position in enterprise AI server sales via PowerEdge with NVIDIA GPU integration
- Massive direct sales force and enterprise relationship network creates competitive advantage in large deals
- PC cycle recovery in CSG provides a second growth driver alongside AI infrastructure
- AI server margin compression as NVIDIA GPU allocation costs rise relative to HPE's pricing power
- GreenLake ARR growth has been slower than initially targeted, raising questions about enterprise cloud adoption pace
- Dell is a stronger competitor in AI servers for enterprise, with broader direct sales coverage and faster execution
- AI servers carry lower gross margins than traditional servers due to GPU component cost pass-through
- PC market demand recovery has been slower and more uneven than initially projected
- Supply chain volatility for NVIDIA GPUs creates order backlog uncertainty and timing risk
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