HP Inc. (HPQ) and Apple Inc. (AAPL) are two major players in the computer hardware industry, each with distinct market segments. HP focuses on personal computing, workstations, and printing services, while Apple operates an integrated ecosystem including iPhones, Macs, iPads, wearables, and digital services. Both companies are investing in AI-enabled products to drive growth and customer engagement.
HPQ is benefiting from the rise of AI-capable personal computers, premium commercial devices, and industrial printing. In the third quarter of fiscal 2026, AI PCs made up 46% of Personal Systems shipments, up from 44% in the previous quarter. HPQ expects this mix to reach 50% by fiscal year-end and 60-70% in fiscal 2027. The company is also collaborating with over 150 software partners to expand AI use cases. HPQ's premium and commercial PC strategy is driving revenue growth despite declining unit volumes, with Personal Systems revenues increasing 18.5% year over year to $11.77 billion.
Apple is leveraging its integrated hardware and software ecosystem, growing Services business, and expanding AI capabilities. The company recently introduced the iPhone 18 Pro, featuring the A20 Pro chip and enhanced Siri AI capabilities. Apple's Services revenues increased 12.1% year over year to $30.74 billion in the third quarter of fiscal 2026, accounting for 28.1% of total sales. The Mac business is another growth driver, with revenues increasing 28.7% year over year to $10.35 billion. However, Apple faces risks such as supply constraints and rising memory costs.
Shares of HPQ and AAPL have surged 45.7% and 26.5%, respectively, in the year-to-date period. HPQ is trading at a forward 12-month Price-to-Sales ratio of 0.48X, much lower than AAPL’s P/S multiple of 9.55X. From a valuation perspective, HPQ appears to be the better choice right now, although both stocks carry a Zacks Rank #3 (Hold).