IBM vs Siemens Which Is Stronger?

IBM and Siemens are two global leaders in the technology and industrial sectors, with both companies experiencing highs and lows in their respective stock performances. Investors often compare and contrast the two stocks to determine which may be a more lucrative investment opportunity. IBM has a long-standing reputation for innovation in the tech industry, while Siemens is known for its strength in industrial automation and healthcare. Both companies face challenges in staying competitive in the rapidly evolving market.

IBM or Siemens?

When comparing IBM and Siemens, 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 Siemens.

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 Siemens has a dividend yield of 0.13%. 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, Siemens reports a 5-year dividend growth of 7.39% 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 33.21 and Siemens's P/E ratio at 103.37. 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 Siemens's P/B ratio is 18.28.

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 Siemens's is 0.58%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IBM's ROE at 27.14% and Siemens's ROE at 19.30%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $230.26 for IBM and ₹7791.95 for Siemens. Over the past year, IBM's prices ranged from $157.89 to $239.35, with a yearly change of 51.59%. Siemens's prices fluctuated between ₹3809.15 and ₹8129.90, with a yearly change of 113.43%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.