ALS vs IBM Which Is Superior?

ALS (Amyotrophic Lateral Sclerosis) and IBM (International Business Machines) are two vastly different companies operating in separate industries. ALS is a biopharmaceutical company specializing in developing therapies for neurodegenerative diseases, while IBM is a multinational technology company offering a range of products and services. Despite their differences, both companies have seen fluctuations in their stock prices due to various factors such as market trends, financial performance, and industry competition. Analyzing and comparing the performance of ALS and IBM stocks can provide valuable insights for investors looking to diversify their portfolios.

ALS or IBM?

When comparing ALS and IBM, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between ALS and IBM.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. ALS has a dividend yield of 2.52%, while IBM has a dividend yield of 2.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ALS reports a 5-year dividend growth of 11.64% year and a payout ratio of 1463.57%. On the other hand, IBM reports a 5-year dividend growth of 1.32% year and a payout ratio of 95.65%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with ALS P/E ratio at 573.72 and IBM's P/E ratio at 33.21. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ALS P/B ratio is 6.24 while IBM's P/B ratio is 8.69.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ALS has seen a 5-year revenue growth of 0.63%, while IBM's is -0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ALS's ROE at 0.99% and IBM's ROE at 27.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$15.29 for ALS and $230.26 for IBM. Over the past year, ALS's prices ranged from A$11.75 to A$16.50, with a yearly change of 40.43%. IBM's prices fluctuated between $157.89 and $239.35, with a yearly change of 51.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.