HPE Jumps 17% in a Month, But Does WDC Offer Better Fundamentals?
Western Digital (WDC) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Hewlett Packard Enterprise (HPE), suggesting you may be better off investing in WDC
- WDC’s quarterly revenue growth was 30.0%, vs. HPE’s 5.9%.
- In addition, its Last 12 Months revenue growth came in at 39.2%, ahead of HPE’s 11.8%.
- WDC’s LTM margin is higher: 21.1% vs. HPE’s 7.0%.
HPE provides data solutions, general and workload-optimized servers, and wired and wireless networking hardware including Wi-Fi access points, switches, routers, and sensors. WDC develops and sells data storage devices, including HDDs, SSDs, and flash-based embedded storage for computers, mobile phones, tablets, and wearable devices.
Valuation & Performance Overview
| HPE | WDC | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 13.7 | 10.7 | WDC |
| Revenue Growth | |||
| Last Quarter | 5.9% | 30.0% | WDC |
| Last 12 Months | 11.8% | 39.2% | WDC |
| Last 3 Year Average | 4.5% | 8.3% | WDC |
| Operating Margins | |||
| Last 12 Months | 7.0% | 21.1% | WDC |
| Last 3 Year Average | 7.9% | 3.7% | HPE |
| Momentum | |||
| Last 3 Year Return | 91.2% | 191.4% | WDC |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: HPE Revenue Comparison | WDC Revenue Comparison
See more margin details: HPE Operating Income Comparison | WDC Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell WDC Stock to see if Western Digital’s edge holds up under the hood or if Hewlett Packard Enterprise still has cards to play (see Buy or Sell HPE Stock).
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- S&P 500 Movers | Winners: JBHT, MU, ON | Losers: KVUE, FFIV, HPE
- After HPE’s 15% Climb in a Month, WDC Looks Like the Stronger Long-Term Play
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| HPE Return | -22% | 37% | 4% | 10% | 29% | 10% | 70% | ||
| WDC Return | -11% | 18% | -52% | 66% | 14% | 84% | 73% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 11% | 100% | <=== | |
| Monthly Win Rates [3] | |||||||||
| HPE Win Rate | 42% | 58% | 50% | 67% | 50% | 57% | 54% | ||
| WDC Win Rate | 42% | 50% | 42% | 58% | 67% | 86% | 57% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 57% | 62% | <=== | |
| Max Drawdowns [4] | |||||||||
| HPE Max Drawdown | -50% | -2% | -22% | -13% | -12% | -41% | -23% | ||
| WDC Max Drawdown | -54% | -11% | -54% | -0% | -6% | -32% | -26% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 9/4/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read WDC Dip Buyer Analyses and HPE Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.