Blackstone vs IBM Which Outperforms?

Blackstone and IBM are two well-known companies in the financial and technology sectors, respectively. Blackstone is a global investment firm specializing in private equity, real estate, and credit investments. IBM, on the other hand, is a multinational technology company known for its hardware, software, and cloud computing services. Both companies have seen fluctuations in their stock prices in recent years, with investors closely monitoring their performance and growth prospects. This comparison explores the differences between Blackstone and IBM stocks to provide insight for potential investors.

Blackstone or IBM?

When comparing Blackstone 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 Blackstone 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. Blackstone has a dividend yield of 1.83%, while IBM has a dividend yield of 2.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Blackstone reports a 5-year dividend growth of -1.93% year and a payout ratio of 196.69%. 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 Blackstone P/E ratio at 65.07 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. Blackstone P/B ratio is 20.66 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, Blackstone has seen a 5-year revenue growth of 1.12%, while IBM's is -0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Blackstone's ROE at 32.22% and IBM's ROE at 27.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $188.23 for Blackstone and $230.26 for IBM. Over the past year, Blackstone's prices ranged from $114.88 to $200.96, with a yearly change of 74.93%. 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.