Financial Contrast: Axe Compute (NASDAQ:AGPU) vs. International Business Machines (NYSE:IBM)

Axe Compute (NASDAQ:AGPU) and International Business Machines (NYSE:IBM) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Axe Compute and International Business Machines, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axe Compute	1	0	0	1	2.50
International Business Machines	2	12	18	0	2.50

International Business Machines has a consensus target price of $253.52, suggesting a potential upside of 14.91%. Given International Business Machines’ higher possible upside, analysts clearly believe International Business Machines is more favorable than Axe Compute.

Profitability

This table compares Axe Compute and International Business Machines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axe Compute	-7,769.61%	-1,606.56%	-355.39%
International Business Machines	15.52%	35.65%	7.54%

Institutional and Insider Ownership

9.0% of Axe Compute shares are owned by institutional investors. Comparatively, 59.0% of International Business Machines shares are owned by institutional investors. 1.2% of Axe Compute shares are owned by company insiders. Comparatively, 0.3% of International Business Machines shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Axe Compute has a beta of 3.66, suggesting that its stock price is 266% more volatile than the S&P 500. Comparatively, International Business Machines has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Valuation & Earnings

This table compares Axe Compute and International Business Machines”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axe Compute	$120,000.00	1,164.99	-$233.10 million	($5.75)	-2.10
International Business Machines	$67.53 billion	3.08	$10.59 billion	$11.27	19.58

International Business Machines has higher revenue and earnings than Axe Compute. Axe Compute 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.

Summary

International Business Machines beats Axe Compute on 10 of the 14 factors compared between the two stocks.

About Axe Compute

Predictive Oncology Inc., a knowledge-driven company, focuses on developing personalized cancer therapies using artificial intelligence (AI) primarily in the United States. The company operates in four segments: Helomics, zPREDICTA, Soluble, and Skyline. The Helomics segment offers clinical testing services comprising tumor drug response testing and genomic profiling tests; and contract research services through patient-centric drug discovery using active learning technology for discovery, clinical and translational research, clinical trials, and diagnostic development and validation. The zPREDICTA segment develops organ-specific disease models that provide 3D reconstruction of human tissues representing each disease state and mimicking drug response for testing of anticancer agents. The Soluble segment provides services using High-Throughput Self-Interaction Chromatography, a self-contained, automated system that conducts high-throughput, self-interaction chromatography screens using additives and excipients that are included in protein formulations for soluble and physically stable formulations for biologics. This segment also offers protein stability analysis services; protein solubility kits that allow rapid identification of soluble formulations; and proprietary technologies for bacterial endotoxin detection and removal. The Skyline segment provides STREAMWAY System, a wall-mounted fully automated system, which virtually eliminates staff exposure to blood, irrigation fluid, and other infectious fluids found in the healthcare environment. It also offers research and development services; and media that help cancer cells grow outside the patient’s body and retain their DNA/RNA and proteomic signatures. The company was formerly known as Precision Therapeutics Inc. and changed its name to Predictive Oncology Inc. in June 2019. Predictive Oncology Inc. was incorporated in 2002 and is based in Eagan, Minnesota.

About International Business Machines

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment focuses on skills integration for strategy, experience, technology, and operations by domain and industry. The Infrastructure segment provides on-premises and cloud based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. The Financing segment offers client and commercial financing, facilitates IBM clients’ acquisition of hardware, software, and services. The company has a strategic partnership to various companies including hyperscalers, service providers, global system integrators, and software and hardware vendors that includes Adobe, Amazon Web services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others. The company was formerly known as Computing-Tabulating-Recording Co. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.