Hewlett-Packard (HPQ) is a brand name that has been synonymous with some of the most exceptional computers and accessories in the technological world. Founded in 1939, it basically started out as electronic test equipment maker, but would later on specialize in producing components for the computer industry.

The growth of Hewlett-Packard has been gradual and has turned it into the second-largest computer hardware provider in terms of sales, while its main rival IBM (IBM) comes in at first place. The battle for domination has been rather intriguing from an analytical point of view, as each company has tried to turn the tables to its favor. Although Terradata (TDC), Silicon Graphics International (SGI) and Dell (DELL) are also key contributors to the multibillion-dollar computer hardware industry, Hewlett-Packard has been able to stay well ahead.

IBM currently enjoys a market capitalization of over $231 billion, leaving Hewlett-Packard far behind in this sense as the latter trails at about $48 billion. This is almost a fifth of IBM’s market cap, which indicates that Hewlett-Packard is still far off from taking the reins from the top computer hardware provider. There is, however, hope for many investors, as figures show that Hewlett-Packard has a slightly better price/earnings growth for the next five years when compared to all its rivals.

With an operating margin of about 8% for Hewlett-Packard, 7% for Dell and 20% for IBM, keen investors will no doubt see that IBM is operating at a greater efficiency that its two competitors. To continue reading, click here.