Dell (DELL) vs. Fitbit (NYSE:FIT) Head-To-Head Review

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Dell (NASDAQ:DELL) and Fitbit (NYSE:FIT) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for Dell and Fitbit, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dell 0 3 8 0 2.73
Fitbit 3 5 3 0 2.00

Dell presently has a consensus price target of $59.75, indicating a potential upside of 16.04%. Fitbit has a consensus price target of $5.75, indicating a potential downside of 11.40%. Given Dell’s stronger consensus rating and higher possible upside, equities analysts clearly believe Dell is more favorable than Fitbit.

Valuation and Earnings

This table compares Dell and Fitbit’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dell $78.66 billion 0.50 -$3.73 billion $6.17 8.35
Fitbit $1.62 billion 0.87 -$277.19 million ($0.65) -9.98

Fitbit has lower revenue, but higher earnings than Dell. Fitbit is trading at a lower price-to-earnings ratio than Dell, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

22.9% of Dell shares are owned by institutional investors. Comparatively, 61.8% of Fitbit shares are owned by institutional investors. 46.0% of Dell shares are owned by company insiders. Comparatively, 19.8% of Fitbit shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Dell has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Fitbit has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500.

Profitability

This table compares Dell and Fitbit’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dell -2.84% 31.57% 3.97%
Fitbit -16.32% -24.69% -12.86%

Summary

Dell beats Fitbit on 10 of the 14 factors compared between the two stocks.

Dell Company Profile

Dell Inc. (Dell) is a global information technology company that offers its customers a range of solutions and services delivered directly by Dell and through other distribution channels. Dell is a holding company that conducts its business worldwide through its subsidiaries. The Company operates in four segments: Large Enterprise, Public, Small and Medium Business, and Consumer. The Company’s Large Enterprise customers include global and national corporate businesses. Its Public customers, which include educational institutions, government, health care, and law enforcement agencies, operate in their own communities. Its SMB segment is focused on helping small and medium-sized businesses by offering products, services, and solutions. Its Consumer segment is focused on delivering technology experience of entertainment, mobility, gaming, and design. In March 2014, the Company acquired StatSoft, a provider of advanced analytics solutions.

Fitbit Company Profile

Fitbit, Inc., a technology company, provides health solutions in the United States and internationally. The company offers a line of devices, including Fitbit Surge, Fitbit Blaze, Fitbit Charge 2, Alta HR, Alta, Fitbit Flex 2, Fitbit One, and Fitbit Zip activity trackers; Fitbit Ionic smartwatches; Fitbit Aria 2 Wi-Fi smart scales; and a range of accessories, such as bands and frames for its devices, as well as Fitbit Flyer, a wireless headphone designed for fitness. It also offers Fitbit online dashboard and mobile apps that sync automatically with and display real-time data from its wearable devices; and Fitbit Coach that offers exercise programs through personal trainer and yoga apps. The company sells its products through consumer electronics and specialty, e-commerce, mass merchant, department store, club, and sporting goods and outdoors retailers; wireless carriers; distributors; and Fitbit.com, an online store, as well as directly to consumers. The company was formerly known as Healthy Metrics Research, Inc. and changed its name to Fitbit, Inc. in October 2007. Fitbit, Inc. was founded in 2007 and is headquartered in San Francisco, California.

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