IBM vs Exxon Mobil Which Offers More Value?

IBM and Exxon Mobil are two of the most well-known and established companies in the world. IBM is a global technology and consulting firm, while Exxon Mobil is one of the largest oil and gas corporations. Both companies have a long history of success and have been key players in their respective industries for decades. Investors often compare the performance of IBM and Exxon Mobil stocks to determine which may be a better investment option. Let's delve deeper into the financials and stock performance of these two industry giants.

IBM or Exxon Mobil?

When comparing IBM and Exxon Mobil, 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 IBM and Exxon Mobil.

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. IBM has a dividend yield of 2.89%, while Exxon Mobil has a dividend yield of 3.46%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. IBM reports a 5-year dividend growth of 1.32% year and a payout ratio of 95.65%. On the other hand, Exxon Mobil reports a 5-year dividend growth of 2.64% year and a payout ratio of 47.99%.

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 IBM P/E ratio at 33.21 and Exxon Mobil's P/E ratio at 14.68. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. IBM P/B ratio is 8.69 while Exxon Mobil's P/B ratio is 1.84.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, IBM has seen a 5-year revenue growth of -0.22%, while Exxon Mobil's is 0.25%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IBM's ROE at 27.14% and Exxon Mobil's ROE at 14.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $230.26 for IBM and $110.25 for Exxon Mobil. Over the past year, IBM's prices ranged from $157.89 to $239.35, with a yearly change of 51.59%. Exxon Mobil's prices fluctuated between $95.77 and $126.34, with a yearly change of 31.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.