IBM vs Keysight Technologies Which Is a Smarter Choice?

IBM and Keysight Technologies are two prominent companies in the tech industry, both offering investors unique opportunities for growth and stability. IBM, a global leader in technology services and consulting, has a long-standing reputation for innovation and growth. On the other hand, Keysight Technologies, a leading electronic measurement company, provides essential solutions for a variety of industries. Both stocks have shown strong performance in recent years, making them attractive options for investors seeking to diversify their portfolios in the tech sector.

IBM or Keysight Technologies?

When comparing IBM and Keysight Technologies, 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 Keysight Technologies.

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 Keysight Technologies has a dividend yield of -%. 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, Keysight Technologies reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Keysight Technologies's P/E ratio at 31.21. 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 Keysight Technologies's P/B ratio is 5.45.

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 Keysight Technologies's is 0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IBM's ROE at 27.14% and Keysight Technologies's ROE at 18.63%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $213.50 for IBM and $162.11 for Keysight Technologies. Over the past year, IBM's prices ranged from $147.35 to $237.37, with a yearly change of 61.09%. Keysight Technologies's prices fluctuated between $119.72 and $166.28, with a yearly change of 38.89%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.