Comcast vs IBM Which Outperforms?

Comcast Corporation and International Business Machines Corporation (IBM) are two prominent companies in the technology and communication industries. Both companies have a long history of success and have become household names around the world. However, their stocks have performed differently in recent years, with Comcast experiencing steady growth while IBM has faced challenges in adapting to changing market trends. Investors are closely monitoring the performance of these two companies to make informed decisions about their investments.

Comcast or IBM?

When comparing Comcast 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 Comcast 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. Comcast has a dividend yield of 3.06%, while IBM has a dividend yield of 2.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Comcast reports a 5-year dividend growth of 0.00% year and a payout ratio of 32.74%. 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 Comcast P/E ratio at 10.50 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. Comcast P/B ratio is 1.80 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, Comcast has seen a 5-year revenue growth of 0.41%, while IBM's is -0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Comcast's ROE at 17.56% and IBM's ROE at 27.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $60.75 for Comcast and $230.26 for IBM. Over the past year, Comcast's prices ranged from $53.54 to $66.80, with a yearly change of 24.77%. 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.