Plenty of companies strive to copy the IBM
In some ways, HP actually has Big Blue beat. If IBM wanted to emulate HP, it would have to buy its strategic partner Brocade
That sprawling model is working wonders for HP right now. Second-quarter sales jumped 13% year over year to $30.8 billion, while GAAP earnings took a 28% leap to $0.91 per share. Enterprise-class servers and storage led the way with a 31% sales gain, followed by consumer-level systems at a 21% growth pace. Desktop sales increased more quickly than notebooks, reversing an age-old trend.
CEO Mark Hurd also shared some fresh insight on what HP's next big acquisition might mean. Palm
IBM is still more profitable than HP and carries a bigger market cap. HP stock now trades at a price-to-sales ratio of just 0.91, while Big Blue fetches 1.72 times trailing sales. If I was a value investor, I'd take a good, hard look at Hewlett-Packard today. The business is moving in all the right directions with plenty of inefficiencies left to squeeze out of the system, and you can pick up shares at a rock-bottom price.