IBM vs Kyndryl Which Is More Lucrative?

IBM and Kyndryl are two separate entities; IBM being a well-known multinational technology company, and Kyndryl a newly formed independent company focusing on IT infrastructure services. Since their split, both companies have seen fluctuations in their stock prices. Investors are closely monitoring the performance of both stocks to determine which may be a more lucrative investment option. As the competition between IBM and Kyndryl heats up, shareholders are eagerly anticipating the future growth potential of these two tech giants.

IBM or Kyndryl?

When comparing IBM and Kyndryl, 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 Kyndryl.

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 2.9%, while Kyndryl 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, Kyndryl 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 33.11 and Kyndryl's P/E ratio at -93.13. 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 8.66 while Kyndryl's P/B ratio is 7.78.

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 Kyndryl's is -0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IBM's ROE at 27.14% and Kyndryl's ROE at -8.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $230.12 for IBM and $35.11 for Kyndryl. Over the past year, IBM's prices ranged from $157.89 to $239.35, with a yearly change of 51.59%. Kyndryl's prices fluctuated between $18.05 and $35.97, with a yearly change of 99.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.