Mphasis vs IBM Which Is More Lucrative?

Mphasis and IBM are two prominent companies in the technology sector, both offering a range of services in areas such as IT consulting, software development, and outsourcing. While IBM is a well-established multinational corporation with a long history in the industry, Mphasis is a relatively newer player that has quickly gained traction in the market. Investors looking to compare these two stocks should consider factors such as growth potential, financial performance, and market trends to make informed decisions about their investment portfolios.

Mphasis or IBM?

When comparing Mphasis 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 Mphasis 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. Mphasis has a dividend yield of 1.92%, while IBM has a dividend yield of 2.34%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Mphasis reports a 5-year dividend growth of 20.11% year and a payout ratio of 59.13%. 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 Mphasis P/E ratio at 33.94 and IBM's P/E ratio at 30.73. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Mphasis P/B ratio is 6.24 while IBM's P/B ratio is 8.04.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Mphasis has seen a 5-year revenue growth of 0.74%, while IBM's is -0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mphasis's ROE at 18.43% and IBM's ROE at 27.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹2819.60 for Mphasis and $213.50 for IBM. Over the past year, Mphasis's prices ranged from ₹2144.10 to ₹3187.80, with a yearly change of 48.68%. IBM's prices fluctuated between $147.35 and $237.37, with a yearly change of 61.09%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.