International Business Machines Corporation (IBM) and Manhattan Associates (MANH) Critical Comparison
International Business Machines Corporation (NYSE: IBM) and Manhattan Associates (NASDAQ:MANH) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.
Valuation & Earnings
This table compares International Business Machines Corporation and Manhattan Associates’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|International Business Machines Corporation||$79.92 billion||1.73||$11.87 billion||$11.97||12.46|
|Manhattan Associates||$604.56 million||4.72||$124.23 million||$1.74||23.77|
International Business Machines Corporation has higher revenue and earnings than Manhattan Associates. International Business Machines Corporation is trading at a lower price-to-earnings ratio than Manhattan Associates, indicating that it is currently the more affordable of the two stocks.
International Business Machines Corporation pays an annual dividend of $6.00 per share and has a dividend yield of 4.0%. Manhattan Associates does not pay a dividend. International Business Machines Corporation pays out 50.1% of its earnings in the form of a dividend. International Business Machines Corporation has raised its dividend for 17 consecutive years.
This table compares International Business Machines Corporation and Manhattan Associates’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|International Business Machines Corporation||14.43%||68.68%||10.82%|
Insider and Institutional Ownership
58.4% of International Business Machines Corporation shares are held by institutional investors. 0.2% of International Business Machines Corporation shares are held by company insiders. Comparatively, 1.0% of Manhattan Associates shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of recent ratings and recommmendations for International Business Machines Corporation and Manhattan Associates, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|International Business Machines Corporation||6||16||8||0||2.07|
International Business Machines Corporation currently has a consensus price target of $158.62, indicating a potential upside of 6.34%. Manhattan Associates has a consensus price target of $65.00, indicating a potential upside of 57.16%. Given Manhattan Associates’ stronger consensus rating and higher probable upside, analysts plainly believe Manhattan Associates is more favorable than International Business Machines Corporation.
Risk and Volatility
International Business Machines Corporation has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Manhattan Associates has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.
Manhattan Associates beats International Business Machines Corporation on 10 of the 17 factors compared between the two stocks.
International Business Machines Corporation Company Profile
International Business Machines Corporation (IBM) is a technology company. The Company operates through five segments: Cognitive Solutions, Global Business Services (GBS), Technology Services & Cloud Platforms, Systems and Global Financing. The Cognitive Solutions segment delivers a spectrum of capabilities, from descriptive, predictive and prescriptive analytics to cognitive systems. Cognitive Solutions includes Watson, a cognitive computing platform that has the ability to interact in natural language, process big data, and learn from interactions with people and computers. The GBS segment provides clients with consulting, application management services and global process services. The Technology Services & Cloud Platforms segment provides information technology infrastructure services. The Systems segment provides clients with infrastructure technologies. The Global Financing segment includes client financing, commercial financing, and remanufacturing and remarketing.
Manhattan Associates Company Profile
Manhattan Associates, Inc. (Manhattan) is a developer and provider of supply chain commerce solutions. The Company operates through three geographical segments: the Americas, Europe, Middle East and Africa (EMEA), and the Asia Pacific (APAC). It is engaged in developing, selling, deploying, servicing and maintaining software solutions designed to manage supply chains, inventory and omni-channel operations for retailers, wholesalers, manufacturers, logistics providers and other organizations. Its solutions consist of software, services and hardware, which coordinate people, workflows, assets, events and tasks across the functions linked in a supply chain from planning through execution. Its supply chain solutions consist of three components: Distribution Management, Transportation Management and Visibility. Its Omni-Channel Solutions include Omni-Channel Central Solutions and Omni-Channel Local Solutions. Its Inventory solutions include Inventory Optimization and Planning.
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