Better investment right now? Apple or HP

Published Thu, Mar 26 20152:38 PM EDTUpdated Thu, Apr 2 20155:07 PM EDT

A beaten-down technology stock faces off against shares of the world's largest company in tonight's Fast Money Madness challenge. Hewlett-Packard 's stock fell 20 percent this year as the company provided weak guidance on the back of a strong dollar and soft PC demand. Meanwhile, Apple 's stock continues to rise, up 13 percent this year, thanks to its global dominance on multiple fronts. These two technology companies are squaring off Thursday night against each other on "Fast Money," as part of the show's Madness challenge. Here's a preview of the traders' thoughts so you can make the trade now. One of the reasons for the difference is changing trends in the PC business, which continue to weigh on Hewlett-Packard. The company announced it will split into two separate firms later this year, separating its computer and printer businesses from its faster-growing corporate hardware and services operations. Yet, Apple has been able to capitalize on its strong brand loyalty through diversification of its product offerings. That strategy helped the iPhone maker become the world's most valuable company this year, with a market value of more than $700 billion. "Apple is the clear choice over HPQ," said Steve Grasso , alluding to Apple's world-class franchise. The trader believes the company's large cash holdings along with the buyback and dividend payments in place offer a solid investment proposition. Grasso thinks growth opportunities in the internet of things designed to provide car and home automation services, as well as, news of a potential debut of Apple TV , could also be catalysts to lift the stock higher. Fast Money trader Karen Finerman is also bullish on the company. "Apple's balance sheet is unmatched in corporate America," she said, "while the shift to allocate some of that capital to shareholders shows CEO Tim Cook cares where the stock trades." During the latest filing, Apple's cash holdings grew to $178 billion, which is higher than the total market value of 97 percent of the S & P 500 components. Also, the company has completed more than $100 billion of its $130 billion dividend and stock repurchase plan. Read More Finding best tech stock: Intuit vs. Western Union Of the two companies, however, HP offers the most upside potential, according to Wall Street analysts' price targets. 'HP' has consensus target price of $40, or 26 percent higher from where the stock trades. That compares to a target price of $139 for Apple, or 12 percent higher from here. So which is the better tech stock? Apple was the unanimous winner among Fast Money traders. The company moves on to the next round. How it works: For this year's Fast Money Madness Challenge, 16 technology companies square off against each other. Eight of the leading stocks in the S & P information technology index will go up against eight of the laggards. For the next three weeks on "Fast Money" (5 p.m. ET), the four panelists will vigorously debate the stock matchups in our bracket. CNBC Pro subscribers will get exclusive access to previews of each matchup before the show. There will never be any ties because the viewers' Twitter vote counts as the fifth trader. The winner of each matchup will move on to the next round. Before each game to be played that night, just tweet your ticker picks to @cnbcfastmoney using the hashtag #fastmoneymadness. Then watch "Fast Money" each night to see your how your pick does in the game.

CNBC

A beaten-down technology stock faces off against shares of the world's largest company in tonight's Fast Money Madness challenge.

Hewlett-Packard's stock fell 20 percent this year as the company provided weak guidance on the back of a strong dollar and soft PC demand. Meanwhile, Apple's stock continues to rise, up 13 percent this year, thanks to its global dominance on multiple fronts.

These two technology companies are squaring off Thursday night against each other on "Fast Money," as part of the show's Madness challenge. Here's a preview of the traders' thoughts so you can make the trade now.