Atos vs IBM Which Is a Better Investment?

Atos and IBM are both major players in the technology sector, with stocks that are closely watched by investors. Atos, a French IT services company, has been steadily growing in recent years, while IBM, a longstanding American technology giant, has faced challenges in adapting to changing market trends. Both companies offer unique opportunities and challenges for investors looking to capitalize on the rapidly evolving technology landscape. In this comparison, we will delve into the key factors driving the performance of Atos and IBM stocks.

Atos or IBM?

When comparing Atos 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 Atos 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. Atos has a dividend yield of 1.49%, while IBM has a dividend yield of 2.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Atos reports a 5-year dividend growth of 0.00% year and a payout ratio of -0.33%. 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 Atos P/E ratio at -0.00 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. Atos P/B ratio is -0.01 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, Atos has seen a 5-year revenue growth of 3.17%, while IBM's is -0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Atos's ROE at 543.30% and IBM's ROE at 27.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.08 for Atos and $230.26 for IBM. Over the past year, Atos's prices ranged from $0.07 to $1.70, with a yearly change of 2328.57%. 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.