Kyndryl vs IBM Which Offers More Value?

Kyndryl and IBM are two prominent companies in the technology industry, with a rich history of innovation and success. Recently, Kyndryl has emerged as a separate entity from IBM, leading to speculation and comparison between the two stocks. Investors are closely monitoring the performance of both companies, analyzing factors such as market trends, financial stability, and growth potential. As the competition between Kyndryl and IBM heats up, shareholders are eager to see which stock will outperform in the market.

Kyndryl or IBM?

When comparing Kyndryl and IBM, 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 Kyndryl and IBM.

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. Kyndryl has a dividend yield of -%, while IBM has a dividend yield of 2.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Kyndryl reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, IBM reports a 5-year dividend growth of 1.32% year and a payout ratio of 95.65%.

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 Kyndryl P/E ratio at -91.89 and IBM's P/E ratio at 33.21. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Kyndryl P/B ratio is 7.68 while IBM's P/B ratio is 8.69.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Kyndryl has seen a 5-year revenue growth of -0.23%, while IBM's is -0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Kyndryl's ROE at -8.35% and IBM's ROE at 27.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $35.21 for Kyndryl and $230.26 for IBM. Over the past year, Kyndryl's prices ranged from $18.13 to $36.43, with a yearly change of 100.94%. IBM's prices fluctuated between $157.89 and $239.35, with a yearly change of 51.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.