IBM vs Intuit Which Is More Profitable?

IBM and Intuit are two technology companies that cater to different markets. While IBM is a multinational corporation that specializes in hardware, software, and cloud-based services, Intuit is known for its financial software offerings, including TurboTax and QuickBooks. Both companies have seen fluctuations in their stock prices over the years, with IBM facing challenges in adapting to the changing tech landscape and Intuit benefiting from the increasing demand for digital financial tools. Investors looking to capitalize on the tech sector may find opportunities in both IBM and Intuit stocks.

IBM or Intuit?

When comparing IBM and Intuit, 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 Intuit.

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 2.34%, while Intuit has a dividend yield of 0.69%. 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, Intuit reports a 5-year dividend growth of 14.59% year and a payout ratio of 34.90%.

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 30.73 and Intuit's P/E ratio at 65.90. 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 8.04 while Intuit's P/B ratio is 10.59.

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 Intuit's is 1.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IBM's ROE at 27.14% and Intuit's ROE at 16.67%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $213.50 for IBM and $682.30 for Intuit. Over the past year, IBM's prices ranged from $147.35 to $237.37, with a yearly change of 61.09%. Intuit's prices fluctuated between $523.32 and $698.96, with a yearly change of 33.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.