Toshiba vs IBM Which Is More Reliable?

Toshiba and IBM are two prominent technology companies with a long history of competition in the stock market. Both companies have innovated in various sectors, including computer hardware, software, and services. Investors closely follow the performance of Toshiba and IBM stocks as they navigate a rapidly changing technological landscape. While Toshiba has struggled with financial setbacks in recent years, IBM has maintained a steady growth trajectory. Understanding the dynamics between these two companies is crucial for investors looking to capitalize on the evolving tech industry.

Toshiba or IBM?

When comparing Toshiba 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 Toshiba 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. Toshiba 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. Toshiba reports a 5-year dividend growth of 0.00% year and a payout ratio of -8.20%. 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 Toshiba P/E ratio at -17.98 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. Toshiba P/B ratio is 0.75 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, Toshiba has seen a 5-year revenue growth of -1.00%, while IBM's is -0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Toshiba's ROE at -12.33% and IBM's ROE at 27.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $14.81 for Toshiba and $230.26 for IBM. Over the past year, Toshiba's prices ranged from $14.25 to $16.75, with a yearly change of 17.54%. 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.