IBM vs Toshiba

IBM and Toshiba are two well-known technology companies with a strong presence in the stock market. IBM, a global leader in computing and technology services, has a long history of innovation and success. On the other hand, Toshiba, a Japanese conglomerate, is known for its diverse range of products, including electronics and semiconductors. Both companies have seen fluctuations in their stock prices over the years, making them interesting options for investors seeking to diversify their portfolios in the tech industry.

IBM or Toshiba?

When comparing IBM and Toshiba, 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 Toshiba.

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 2.86%, while Toshiba 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 72.25%. On the other hand, Toshiba reports a 5-year dividend growth of 0.00% year and a payout ratio of -12.41%.

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 25.43 and Toshiba's P/E ratio at -17.54. 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 8.92 while Toshiba's P/B ratio is 0.73.

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 Toshiba's is -1.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IBM's ROE at 36.30% and Toshiba's ROE at -16.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $232.71 for IBM and $14.81 for Toshiba. Over the past year, IBM's prices ranged from $135.87 to $237.35, with a yearly change of 74.69%. Toshiba's prices fluctuated between $14.25 and $16.75, with a yearly change of 17.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.