IBM vs. ACN, CTSH, IT, LDOS, BAH, EPAM, CACI, DOX, TDC, and HCKT
Should you be buying International Business Machines stock or one of its competitors? The main competitors of International Business Machines include Accenture (ACN), Cognizant Technology Solutions (CTSH), Gartner (IT), Leidos (LDOS), Booz Allen Hamilton (BAH), EPAM Systems (EPAM), CACI International (CACI), Amdocs (DOX), Teradata (TDC), and The Hackett Group (HCKT). These companies are all part of the "it consulting & other services" industry.
International Business Machines (NYSE:IBM) and Accenture (NYSE:ACN) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, media sentiment, community ranking, earnings and profitability.
International Business Machines has higher earnings, but lower revenue than Accenture. International Business Machines is trading at a lower price-to-earnings ratio than Accenture, indicating that it is currently the more affordable of the two stocks.
International Business Machines pays an annual dividend of $6.68 per share and has a dividend yield of 3.5%. Accenture pays an annual dividend of $5.16 per share and has a dividend yield of 1.6%. International Business Machines pays out 75.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Accenture pays out 47.3% of its earnings in the form of a dividend.
International Business Machines has a net margin of 13.52% compared to Accenture's net margin of 10.79%. International Business Machines' return on equity of 41.06% beat Accenture's return on equity.
59.0% of International Business Machines shares are owned by institutional investors. Comparatively, 75.1% of Accenture shares are owned by institutional investors. 0.1% of International Business Machines shares are owned by insiders. Comparatively, 0.1% of Accenture shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
International Business Machines currently has a consensus target price of $184.93, indicating a potential downside of 3.39%. Accenture has a consensus target price of $351.82, indicating a potential upside of 7.12%. Given Accenture's stronger consensus rating and higher probable upside, analysts clearly believe Accenture is more favorable than International Business Machines.
International Business Machines has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Accenture has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.
In the previous week, International Business Machines had 23 more articles in the media than Accenture. MarketBeat recorded 51 mentions for International Business Machines and 28 mentions for Accenture. International Business Machines' average media sentiment score of 0.79 beat Accenture's score of 0.46 indicating that International Business Machines is being referred to more favorably in the media.
Accenture received 60 more outperform votes than International Business Machines when rated by MarketBeat users. Likewise, 70.01% of users gave Accenture an outperform vote while only 58.72% of users gave International Business Machines an outperform vote.
Summary
Accenture beats International Business Machines on 13 of the 19 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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