IBM vs Texas Instruments Which Is More Reliable?

IBM and Texas Instruments are two well-known and established companies in the technology sector, each with its own strengths and weaknesses. IBM, a global leader in software, hardware, and technology services, has a long history of innovation and a strong brand reputation. On the other hand, Texas Instruments is a semiconductor manufacturer known for its focus on analog and embedded processing technologies. Both companies have seen fluctuations in their stock prices over the years, making them interesting options for investors to consider.

IBM or Texas Instruments ?

When comparing IBM and Texas Instruments , 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 Texas Instruments .

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 Texas Instruments has a dividend yield of 3.07%. 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, Texas Instruments reports a 5-year dividend growth of 13.80% year and a payout ratio of 95.39%.

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 Texas Instruments 's P/E ratio at 39.70. 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 Texas Instruments 's P/B ratio is 11.41.

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 Texas Instruments 's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IBM's ROE at 27.14% and Texas Instruments 's ROE at 29.05%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $213.50 for IBM and $214.33 for Texas Instruments . Over the past year, IBM's prices ranged from $147.35 to $237.37, with a yearly change of 61.09%. Texas Instruments 's prices fluctuated between $145.19 and $220.39, with a yearly change of 51.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.