IBM vs. CSCO, ANET, VZ, AMAT, INTU, QCOM, NOW, TXN, UBER, and INTC
Should you be buying International Business Machines stock or one of its competitors? The main competitors of International Business Machines include Cisco Systems (CSCO), Arista Networks (ANET), Verizon Communications (VZ), Applied Materials (AMAT), Intuit (INTU), QUALCOMM (QCOM), ServiceNow (NOW), Texas Instruments (TXN), Uber Technologies (UBER), and Intel (INTC). These companies are all part of the "computer and technology" sector.
International Business Machines (NYSE:IBM) and Cisco Systems (NASDAQ:CSCO) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, media sentiment, community ranking, dividends and earnings.
International Business Machines has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Cisco Systems has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.
59.0% of International Business Machines shares are held by institutional investors. Comparatively, 73.3% of Cisco Systems shares are held by institutional investors. 0.1% of International Business Machines shares are held by insiders. Comparatively, 0.0% of Cisco Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
International Business Machines pays an annual dividend of $6.64 per share and has a dividend yield of 4.0%. Cisco Systems pays an annual dividend of $1.60 per share and has a dividend yield of 3.3%. International Business Machines pays out 75.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cisco Systems pays out 48.6% of its earnings in the form of a dividend.
Cisco Systems received 1304 more outperform votes than International Business Machines when rated by MarketBeat users. Likewise, 73.39% of users gave Cisco Systems an outperform vote while only 58.70% of users gave International Business Machines an outperform vote.
In the previous week, International Business Machines had 86 more articles in the media than Cisco Systems. MarketBeat recorded 108 mentions for International Business Machines and 22 mentions for Cisco Systems. Cisco Systems' average media sentiment score of 0.52 beat International Business Machines' score of 0.23 indicating that Cisco Systems is being referred to more favorably in the news media.
International Business Machines presently has a consensus target price of $184.08, indicating a potential upside of 10.14%. Cisco Systems has a consensus target price of $55.53, indicating a potential upside of 16.02%. Given Cisco Systems' higher probable upside, analysts clearly believe Cisco Systems is more favorable than International Business Machines.
Cisco Systems has a net margin of 23.49% compared to International Business Machines' net margin of 13.18%. International Business Machines' return on equity of 40.21% beat Cisco Systems' return on equity.
Cisco Systems has lower revenue, but higher earnings than International Business Machines. Cisco Systems is trading at a lower price-to-earnings ratio than International Business Machines, indicating that it is currently the more affordable of the two stocks.
Summary
Cisco Systems beats International Business Machines on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding IBM and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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