IBM Common Stock (NYSE: IBM) and Black Box (NASDAQ:BBOX) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.
Volatility & Risk
IBM Common Stock has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Black Box has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for IBM Common Stock and Black Box, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|IBM Common Stock||3||11||8||0||2.23|
IBM Common Stock presently has a consensus target price of $166.19, suggesting a potential upside of 15.03%. Given IBM Common Stock’s higher possible upside, research analysts clearly believe IBM Common Stock is more favorable than Black Box.
Insider and Institutional Ownership
56.1% of IBM Common Stock shares are held by institutional investors. Comparatively, 53.0% of Black Box shares are held by institutional investors. 0.2% of IBM Common Stock shares are held by company insiders. Comparatively, 3.5% of Black Box shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares IBM Common Stock and Black Box’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|IBM Common Stock||7.13%||69.84%||10.52%|
IBM Common Stock pays an annual dividend of $6.28 per share and has a dividend yield of 4.3%. Black Box does not pay a dividend. IBM Common Stock pays out 45.5% of its earnings in the form of a dividend. Black Box has raised its dividend for 7 consecutive years.
Valuation & Earnings
This table compares IBM Common Stock and Black Box’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|IBM Common Stock||$79.14 billion||1.67||$5.75 billion||$13.80||10.47|
|Black Box||$774.60 million||0.03||-$100.09 million||N/A||N/A|
IBM Common Stock has higher revenue and earnings than Black Box.
IBM Common Stock beats Black Box on 11 of the 14 factors compared between the two stocks.
IBM Common Stock Company Profile
International Business Machines Corporation operates as an integrated technology and services company worldwide. Its Cognitive Solutions segment offers Watson, a cognitive computing platform that interacts in natural language, processes big data, and learns from interactions with people and computers. This segment also offers data and analytics solutions, including analytics and data management platforms, cloud data services, enterprise social software, talent management solutions, and solutions tailored by industry; and transaction processing software that runs mission-critical systems in banking, airlines, and retail industries. The company's Global Business Services segment offers business consulting services; delivers system integration, application management, maintenance, and support services for packaged software applications; and finance, procurement, talent and engagement, and industry-specific business process outsourcing services. Its Technology Services & Cloud Platforms segment provides cloud, project-based, outsourcing, and other managed services for enterprise IT infrastructure environments. This segment also offers technical support, and software and solution support; and integration software solutions. The company's Systems segment offers servers for businesses, cloud service providers, and scientific computing organizations; data storage products and solutions; and z/OS, an enterprise operating system. Its Global Financing segment provides lease, installment payment plans, and loan financing services; short-term working capital financing to suppliers, distributors, and resellers; and remanufacturing and remarketing services. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. International Business Machines Corporation was founded in 1911 and is headquartered in Armonk, New York.
Black Box Company Profile
Black Box Corp. engages in the provision of digital solutions. It operates through the following segments: North America Products, North America Services, International Products, and International Services. It offers managed services, infrastructure services, communications lifecycle services, unified communications and data center services. The company was founded in 1976 and is headquartered in Lawrence, PA.
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