After Hewlett Packard (HPQ) spun off Hewlett Packard Enterprises (HPE) the company unleashed its growth potential. Prior to the spinoff the original Hewlett Packard was experiencing very sluggish growth. Consequently, unwinding the company was able to accelerate the growth of both Hewlett Packard Enterprises and to even a greater extent HP Inc. Consequently, I believe that the market is punishing both companies with valuations that are significantly below the intrinsic value of either company.

Photo by Gene Gallin on Unsplash

Of the two, I prefer HP Inc. (HPQ) as the better investment for long-term total return and the stock to buy now. Hewlett Packard Enterprises (HPE) is interesting for current high yield. On the other hand, HP Inc. has better dividend coverage and dividend growth despite the slightly lower current yield.

Video Length: 00:18:22