IBM vs. CSCO, ANET, NOW, MU, VZ, UBER, TXN, AMAT, INTC, and INTU
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), ServiceNow (NOW), Micron Technology (MU), Verizon Communications (VZ), Uber Technologies (UBER), Texas Instruments (TXN), Applied Materials (AMAT), Intel (INTC), and Intuit (INTU). 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 companies based on the strength of their valuation, earnings, community ranking, media sentiment, analyst recommendations, risk, dividends, institutional ownership and profitability.
International Business Machines pays an annual dividend of $6.68 per share and has a dividend yield of 3.9%. Cisco Systems pays an annual dividend of $1.60 per share and has a dividend yield of 3.4%. 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. Cisco Systems pays out 53.9% of its earnings in the form of a dividend.
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.
Cisco Systems received 1305 more outperform votes than International Business Machines when rated by MarketBeat users. Likewise, 73.31% of users gave Cisco Systems an outperform vote while only 58.68% of users gave International Business Machines an outperform vote.
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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
International Business Machines has a beta of 0.74, meaning that its share price is 26% 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.
Cisco Systems has a net margin of 21.88% 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.
International Business Machines presently has a consensus target price of $181.29, suggesting a potential upside of 6.63%. Cisco Systems has a consensus target price of $56.47, suggesting a potential upside of 19.82%. Given Cisco Systems' stronger consensus rating and higher probable upside, analysts plainly believe Cisco Systems is more favorable than International Business Machines.
In the previous week, Cisco Systems had 25 more articles in the media than International Business Machines. MarketBeat recorded 79 mentions for Cisco Systems and 54 mentions for International Business Machines. Cisco Systems' average media sentiment score of 0.52 beat International Business Machines' score of 0.46 indicating that Cisco Systems is being referred to more favorably in the news media.
Summary
Cisco Systems beats International Business Machines on 14 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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