DELL VS. CPQ,
1. DELL has a market cap of $78.5 Billion, CPQ's market cap is $58.9B
2. DELL's stock is selling at 55 times its book value, while CPQ is selling 5.5 times its book value.
3. Dell is selling at 5 times its sales, while CPQ is selling 2 times its sale.
4. CPQ is better established with corporations (where the high margins are), and has just started to really take off with the regular consumers.
Now you can conclude which one is grossly overvalued and which is grossly undervalued! But then again in a market where there is a buyer's strike going on against undervalued companies, I can safely say DELL will continue to soar. However, reality will catch up to foolish investors at some point! The case with DELL kind of reminds me of companies such as Borland, and Novel a few years ago when mania was at its ultimate point (as far as I remember).
Regards,
Addi Jamshidi |
