Sun vs IBM Which Is More Profitable?

Sun Microsystems and IBM are two major players in the technology industry, each offering a wide range of products and services. Both companies have a significant impact on the stock market, with their stock prices often closely followed by investors. Sun Microsystems, founded in 1982, focuses on computer hardware and software, while IBM, founded in 1911, has a broader range of offerings including cloud computing and artificial intelligence. Understanding the performance and trajectory of their stocks can provide valuable insights for investors looking to capitalize on the technology sector.

Sun or IBM?

When comparing Sun 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 Sun 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. Sun has a dividend yield of 0.98%, while IBM has a dividend yield of 2.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Sun 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 Sun P/E ratio at -271.86 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. Sun P/B ratio is 5.37 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, Sun has seen a 5-year revenue growth of -0.60%, while IBM's is -0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sun's ROE at -2.13% and IBM's ROE at 27.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥8890.00 for Sun and $230.26 for IBM. Over the past year, Sun's prices ranged from ¥2038.00 to ¥9600.00, with a yearly change of 371.05%. 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.