GLOBALFOUNDRIES vs IBM Which Offers More Value?

GlobalFoundries and IBM are two giants in the semiconductor industry, each with a rich history of innovation and technological advancement. GlobalFoundries, a leading semiconductor manufacturing company, has seen steady growth in recent years due to increasing demand for chips in various industries. On the other hand, IBM, a pioneer in computer hardware and software, has faced some challenges in keeping up with the rapidly changing market trends. Investors are closely watching the performance of both stocks to assess their long-term potential in the ever-evolving tech landscape.

GLOBALFOUNDRIES or IBM?

When comparing GLOBALFOUNDRIES 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 GLOBALFOUNDRIES 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. GLOBALFOUNDRIES 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. GLOBALFOUNDRIES 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 GLOBALFOUNDRIES P/E ratio at 32.64 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. GLOBALFOUNDRIES P/B ratio is 2.10 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, GLOBALFOUNDRIES has seen a 5-year revenue growth of 0.15%, while IBM's is -0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GLOBALFOUNDRIES's ROE at 6.58% and IBM's ROE at 27.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $43.34 for GLOBALFOUNDRIES and $230.26 for IBM. Over the past year, GLOBALFOUNDRIES's prices ranged from $35.85 to $62.61, with a yearly change of 74.64%. 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.