ATI vs IBM Which Is More Lucrative?

ATI Technologies Inc. and IBM Corporation are two prominent players in the technology industry, each offering unique strengths and capabilities in the stock market. ATI is a leading designer and manufacturer of graphics processors, while IBM is a diversified technology company known for its hardware, software, and services. Investors often compare and contrast the performance of these two stocks, weighing factors such as revenue growth, market share, and technological innovation to make informed investment decisions.

ATI or IBM?

When comparing ATI 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 ATI 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. ATI has a dividend yield of -%, while IBM has a dividend yield of 2.88%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ATI reports a 5-year dividend growth of 0.00% year and a payout ratio of 4.25%. 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 ATI P/E ratio at 19.52 and IBM's P/E ratio at 33.34. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ATI P/B ratio is 4.10 while IBM's P/B ratio is 8.72.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ATI has seen a 5-year revenue growth of 0.17%, while IBM's is -0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ATI's ROE at 26.03% and IBM's ROE at 27.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $56.23 for ATI and $227.91 for IBM. Over the past year, ATI's prices ranged from $38.04 to $68.92, with a yearly change of 81.18%. 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.