International Business Machines (NYSE: IBM) and Intralinks (NYSE:IL) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.
International Business Machines pays an annual dividend of $6.00 per share and has a dividend yield of 3.6%. Intralinks does not pay a dividend. International Business Machines pays out 98.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Intralinks has increased its dividend for 18 consecutive years.
This is a summary of current recommendations and price targets for International Business Machines and Intralinks, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|International Business Machines||6||14||9||0||2.10|
International Business Machines currently has a consensus target price of $164.17, suggesting a potential downside of 1.90%.
Insider and Institutional Ownership
57.3% of International Business Machines shares are held by institutional investors. Comparatively, 91.2% of Intralinks shares are held by institutional investors. 0.2% of International Business Machines shares are held by company insiders. Comparatively, 32.3% of Intralinks shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares International Business Machines and Intralinks’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|International Business Machines||$79.14 billion||1.96||$5.75 billion||$6.11||27.39|
International Business Machines has higher revenue and earnings than Intralinks. Intralinks 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.
This table compares International Business Machines and Intralinks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|International Business Machines||7.27%||69.48%||10.67%|
International Business Machines beats Intralinks on 8 of the 12 factors compared between the two stocks.
International Business Machines Company Profile
Intralinks Company Profile
Receive News & Ratings for International Business Machines Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for International Business Machines and related companies with MarketBeat.com’s FREE daily email newsletter.