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AT&T vs IBM Which Performs Better?

AT&T and IBM are two major players in the telecommunications and technology industries, respectively. Both companies have a long history of innovation and success in their respective sectors. Investors looking to diversify their portfolios may consider investing in these two stocks, as they offer exposure to different segments of the market. AT&T's stock is known for its stability and reliable dividend payments, while IBM's stock is praised for its strong technological advances and global presence. It is important for investors to carefully analyze the financial health and growth prospects of both companies before making an investment decision.

AT&T

IBM

Stock Price
Day Low$23.26
Day High$23.67
Year Low$15.94
Year High$24.03
Yearly Change50.75%
Revenue
Revenue Per Share$16.95
5 Year Revenue Growth-0.32%
10 Year Revenue Growth-0.29%
Profit
Gross Profit Margin0.60%
Operating Profit Margin0.16%
Net Profit Margin0.07%
Stock Price
Day Low$230.26
Day High$233.78
Year Low$157.89
Year High$239.35
Yearly Change51.59%
Revenue
Revenue Per Share$68.00
5 Year Revenue Growth-0.22%
10 Year Revenue Growth-0.26%
Profit
Gross Profit Margin0.56%
Operating Profit Margin0.15%
Net Profit Margin0.10%

AT&T

IBM

Financial Ratios
P/E ratio18.79
PEG ratio21.36
P/B ratio1.66
ROE8.72%
Payout ratio90.45%
Current ratio0.73
Quick ratio0.67
Cash ratio0.06
Dividend
Dividend Yield4.7%
5 Year Dividend Yield-11.11%
10 Year Dividend Yield-4.72%
AT&T Dividend History
Financial Ratios
P/E ratio33.21
PEG ratio-17.96
P/B ratio8.69
ROE27.14%
Payout ratio95.65%
Current ratio1.03
Quick ratio0.98
Cash ratio0.46
Dividend
Dividend Yield2.89%
5 Year Dividend Yield1.32%
10 Year Dividend Yield6.01%
IBM Dividend History

AT&T or IBM?

When comparing AT&T 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 AT&T 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. AT&T has a dividend yield of 4.7%, while IBM has a dividend yield of 2.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AT&T reports a 5-year dividend growth of -11.11% year and a payout ratio of 90.45%. 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 AT&T P/E ratio at 18.79 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. AT&T P/B ratio is 1.66 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, AT&T has seen a 5-year revenue growth of -0.32%, while IBM's is -0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AT&T's ROE at 8.72% and IBM's ROE at 27.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $23.26 for AT&T and $230.26 for IBM. Over the past year, AT&T's prices ranged from $15.94 to $24.03, with a yearly change of 50.75%. 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.

Comparision