Appian vs IBM Which Is More Profitable?

Appian and IBM are two companies operating in the technology sector but with slightly different focuses. Appian specializes in providing low-code automation solutions, enabling businesses to streamline processes and improve efficiency. On the other hand, IBM is a diversified technology company offering a range of services including cloud computing, AI, and cybersecurity. Both companies have seen fluctuations in their stock prices over the years, making them interesting options for investors seeking exposure to the technology industry.

Appian or IBM?

When comparing Appian 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 Appian 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. Appian has a dividend yield of -%, while IBM has a dividend yield of 2.55%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Appian reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, IBM reports a 5-year dividend growth of 0.74% year and a payout ratio of 102.04%.

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 Appian P/E ratio at -25.53 and IBM's P/E ratio at 40.69. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Appian P/B ratio is -72.16 while IBM's P/B ratio is 8.98.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Appian has seen a 5-year revenue growth of 1.13%, while IBM's is 0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Appian's ROE at 267.88% and IBM's ROE at 24.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $30.51 for Appian and $245.18 for IBM. Over the past year, Appian's prices ranged from $26.28 to $43.33, with a yearly change of 64.88%. IBM's prices fluctuated between $162.62 and $265.72, with a yearly change of 63.40%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.