IBM vs. ACN, IT, CTSH, LDOS, BAH, EPAM, CACI, DOX, TDC, and HCKT
Should you be buying International Business Machines stock or one of its competitors? The main competitors of International Business Machines include Accenture (ACN), Gartner (IT), Cognizant Technology Solutions (CTSH), Leidos (LDOS), Booz Allen Hamilton (BAH), EPAM Systems (EPAM), CACI International (CACI), Amdocs (DOX), Teradata (TDC), and The Hackett Group (HCKT). These companies are all part of the "it consulting & other services" industry.
International Business Machines vs.
Accenture (NYSE:ACN) and International Business Machines (NYSE:IBM) are both large-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, community ranking, risk, valuation, dividends and media sentiment.
International Business Machines has lower revenue, but higher earnings than Accenture. Accenture is trading at a lower price-to-earnings ratio than International Business Machines, indicating that it is currently the more affordable of the two stocks.
Accenture received 74 more outperform votes than International Business Machines when rated by MarketBeat users. Likewise, 69.84% of users gave Accenture an outperform vote while only 58.48% of users gave International Business Machines an outperform vote.
Accenture has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, International Business Machines has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.
Accenture has a net margin of 11.41% compared to International Business Machines' net margin of 10.22%. International Business Machines' return on equity of 40.52% beat Accenture's return on equity.
Accenture pays an annual dividend of $5.92 per share and has a dividend yield of 1.7%. International Business Machines pays an annual dividend of $6.68 per share and has a dividend yield of 3.0%. Accenture pays out 49.7% of its earnings in the form of a dividend. International Business Machines pays out 97.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Accenture has raised its dividend for 20 consecutive years and International Business Machines has raised its dividend for 29 consecutive years. International Business Machines is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
75.1% of Accenture shares are held by institutional investors. Comparatively, 59.0% of International Business Machines shares are held by institutional investors. 0.0% of Accenture shares are held by company insiders. Comparatively, 0.1% of International Business Machines shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
In the previous week, International Business Machines had 23 more articles in the media than Accenture. MarketBeat recorded 83 mentions for International Business Machines and 60 mentions for Accenture. International Business Machines' average media sentiment score of 1.21 beat Accenture's score of 1.20 indicating that International Business Machines is being referred to more favorably in the news media.
Accenture presently has a consensus target price of $385.04, suggesting a potential upside of 9.28%. International Business Machines has a consensus target price of $216.87, suggesting a potential downside of 3.50%. Given Accenture's stronger consensus rating and higher possible upside, research analysts plainly believe Accenture is more favorable than International Business Machines.
Summary
Accenture beats International Business Machines on 13 of the 21 factors compared between the two stocks.
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New MarketBeat Followers Over Time
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Media Sentiment Over Time
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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This page (NYSE:IBM) was last updated on 1/20/2025 by MarketBeat.com Staff
