Apple vs IBM Which Is Superior?

Apple and IBM, two giants in the tech industry, have long been considered key players in the stock market. Both companies have had their fair share of successes and challenges, with investors closely monitoring their performance. While Apple is known for its innovative products and loyal customer base, IBM has a strong reputation in enterprise solutions and services. The rivalry between the two companies has led to intense competition in the market, making their stocks a popular choice for investors looking to capitalize on the latest trends in technology.

Apple or IBM?

When comparing Apple 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 Apple 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. Apple has a dividend yield of 0.4%, while IBM has a dividend yield of 2.9%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 16.25%. 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 Apple P/E ratio at 39.90 and IBM's P/E ratio at 33.11. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Apple P/B ratio is 65.67 while IBM's P/B ratio is 8.66.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Apple has seen a 5-year revenue growth of 0.82%, while IBM's is -0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 137.87% and IBM's ROE at 27.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $246.26 for Apple and $230.12 for IBM. Over the past year, Apple's prices ranged from $164.08 to $250.80, with a yearly change of 52.85%. 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.