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Strategies & Market Trends : DELL VS XRX
DELL 160.97-1.6%3:59 PM EDT

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From: bruwin2/26/2014 2:33:50 PM
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DELL's "Annual Results" should be written as from 2009 to 2013



DELL's current Gross Profit is lower at 23.4% vs. 34.9% but it has shown something of an Annual increase whereas XRX has been narrowly declining.

XRX's Depreciation number has been increasingly taking up more of its Gross Profit than has DELL. So less of its profit heading to its Bottom Line.

DELL's Net Profit has been flat over the last 5 years, whereas XRX has shown more of a general increase. Both are low relative to the 20% target, but their business are not likely to get to that sort of number.

DELL's ROE is double that of XRX and close to the 25% target, but it has been generally declining, whereas XRX has shown more of an overall increase.

DELL has been buying back far more of its own stock.

XRX has a current EBITDA Margin of 12.2%, which is about 67% higher than DELL at 7.3%.

DELL's Pretax Inc./Cap. Employed has declined in the last year and is at 11.8% compared to XRX's general increase over the last 5 years, but it's at a lower value of 6.2$.
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I'd say it's a fairly close call. But XRX's Bottom Line performance, its generally improving ROE and Pretax Return leads me to give XRX my vote. It just seems to be a business showing more of an improvement.

Needless to say I won't be at the NYC restaurant for that winner's meal, .... unless someone sends me a Business Class airline ticket !
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