IBM vs NTT DATA Which Is More Promising?

IBM and NTT DATA are two prominent players in the technology industry with a focus on providing innovative solutions for businesses worldwide. Both companies have a strong presence in the global market, offering a wide range of products and services to meet the evolving needs of their customers. IBM, with its long history of innovation and proven track record, remains a powerhouse in the industry, while NTT DATA is gaining momentum as a leading provider of IT services. As investors weigh their options between these two giants, analyzing their stock performance and market trends can provide valuable insights for decision-making.

IBM or NTT DATA?

When comparing IBM and NTT DATA, 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 NTT DATA.

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 NTT DATA 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, NTT DATA reports a 5-year dividend growth of 0.00% year and a payout ratio of 25.33%.

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 NTT DATA's P/E ratio at 34.27. 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 NTT DATA's P/B ratio is 2.42.

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 NTT DATA's is 0.71%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IBM's ROE at 27.14% and NTT DATA's ROE at 7.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $230.12 for IBM and $20.49 for NTT DATA. Over the past year, IBM's prices ranged from $157.89 to $239.35, with a yearly change of 51.59%. NTT DATA's prices fluctuated between $11.89 and $20.73, with a yearly change of 74.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.