EMC vs IBM Which Offers More Value?

EMC Corporation and International Business Machines Corporation (IBM) are two major players in the technology industry, particularly in data storage and information management. Both companies have a strong presence in the market, offering a range of products and services to cater to the growing demands of businesses for storing and managing their data effectively. Investors often compare the stocks of EMC and IBM to assess their potential for growth and profitability in the ever-evolving tech landscape. Let's dive deeper into the comparison of EMC vs IBM stocks to understand their performance and prospects in the market.

EMC or IBM?

When comparing EMC 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 EMC 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. EMC has a dividend yield of -%, while IBM has a dividend yield of 2.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. EMC reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 EMC P/E ratio at -2.53 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. EMC P/B ratio is 0.74 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, EMC has seen a 5-year revenue growth of -0.81%, while IBM's is -0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with EMC's ROE at -32.11% and IBM's ROE at 27.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿0.07 for EMC and $230.26 for IBM. Over the past year, EMC's prices ranged from ฿0.04 to ฿0.12, with a yearly change of 200.00%. 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.