IBM vs. ACN, CTSH, IT, LDOS, BAH, DOX, CACI, EPAM, 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), Cognizant Technology Solutions (CTSH), Gartner (IT), Leidos (LDOS), Booz Allen Hamilton (BAH), Amdocs (DOX), CACI International (CACI), EPAM Systems (EPAM), Teradata (TDC), and The Hackett Group (HCKT). These companies are all part of the "it consulting & other services" industry.
International Business Machines vs. Its Competitors
International Business Machines (NYSE:IBM) and Accenture (NYSE:ACN) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, media sentiment, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.
International Business Machines has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Accenture has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.
International Business Machines currently has a consensus target price of $253.75, indicating a potential downside of 13.24%. Accenture has a consensus target price of $370.71, indicating a potential upside of 25.23%. Given Accenture's stronger consensus rating and higher possible upside, analysts clearly believe Accenture is more favorable than International Business Machines.
International Business Machines pays an annual dividend of $6.72 per share and has a dividend yield of 2.3%. Accenture pays an annual dividend of $5.92 per share and has a dividend yield of 2.0%. International Business Machines pays out 115.7% 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 pays out 47.1% of its earnings in the form of a dividend. International Business Machines has increased its dividend for 30 consecutive years and Accenture has increased its dividend for 20 consecutive years. International Business Machines is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
59.0% of International Business Machines shares are owned by institutional investors. Comparatively, 75.1% of Accenture shares are owned by institutional investors. 0.2% of International Business Machines shares are owned by insiders. Comparatively, 0.0% of Accenture shares are owned by 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, Accenture had 35 more articles in the media than International Business Machines. MarketBeat recorded 119 mentions for Accenture and 84 mentions for International Business Machines. International Business Machines' average media sentiment score of 1.25 beat Accenture's score of 0.81 indicating that International Business Machines is being referred to more favorably in the media.
Accenture has higher revenue and earnings than International Business Machines. 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 has a net margin of 11.61% compared to International Business Machines' net margin of 8.71%. International Business Machines' return on equity of 37.43% beat Accenture's return on equity.
Summary
Accenture beats International Business Machines on 12 of the 19 factors compared between the two stocks.
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New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding IBM and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
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.
International Business Machines Competitors List
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This page (NYSE:IBM) was last updated on 6/27/2025 by MarketBeat.com Staff
