Tech Mahindra vs IBM

Tech Mahindra and IBM are two prominent players in the tech industry, with both companies making significant strides in the fields of software development, cloud computing, and artificial intelligence. While Tech Mahindra is headquartered in India and focuses on providing IT consulting and outsourcing services, IBM is an American multinational technology company known for its hardware, software, and cognitive computing solutions. Investors looking to compare Tech Mahindra vs IBM stocks will need to consider factors such as growth potential, market share, and overall financial performance.

Tech Mahindra or IBM?

When comparing Tech Mahindra 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 Tech Mahindra 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. Tech Mahindra has a dividend yield of 2.39%, while IBM has a dividend yield of 2.86%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Tech Mahindra reports a 5-year dividend growth of 25.74% 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 72.25%.

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 Tech Mahindra P/E ratio at 58.82 and IBM's P/E ratio at 25.43. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Tech Mahindra P/B ratio is 5.45 while IBM's P/B ratio is 8.92.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Tech Mahindra has seen a 5-year revenue growth of 0.50%, while IBM's is -0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tech Mahindra's ROE at 9.40% and IBM's ROE at 36.30%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1663.50 for Tech Mahindra and $232.71 for IBM. Over the past year, Tech Mahindra's prices ranged from ₹1098.15 to ₹1703.45, with a yearly change of 55.12%. IBM's prices fluctuated between $135.87 and $237.35, with a yearly change of 74.69%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.