International Business Machines (NYSE:IBM – Get Free Report) and CI&T (NYSE:CINT – Get Free Report) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.
Institutional and Insider Ownership
59.0% of International Business Machines shares are held by institutional investors. Comparatively, 92.4% of CI&T shares are held by institutional investors. 0.3% of International Business Machines shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings and target prices for International Business Machines and CI&T, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| International Business Machines | 2 | 13 | 19 | 0 | 2.50 |
| CI&T | 2 | 2 | 7 | 0 | 2.45 |
International Business Machines presently has a consensus target price of $266.88, indicating a potential upside of 7.50%. CI&T has a consensus target price of $6.08, indicating a potential upside of 82.13%. Given CI&T’s higher possible upside, analysts plainly believe CI&T is more favorable than International Business Machines.
Earnings & Valuation
This table compares International Business Machines and CI&T”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| International Business Machines | $67.53 billion | 3.47 | $10.59 billion | $11.73 | 21.17 |
| CI&T | $541.02 million | 0.83 | $40.62 million | $0.29 | 11.51 |
International Business Machines has higher revenue and earnings than CI&T. CI&T 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.
Profitability
This table compares International Business Machines and CI&T’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| International Business Machines | 15.99% | 34.37% | 7.63% |
| CI&T | 6.79% | 11.69% | 6.51% |
Risk & Volatility
International Business Machines has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, CI&T has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.
Summary
International Business Machines beats CI&T on 11 of the 14 factors compared between the two stocks.
About International Business Machines
International Business Machines Corporation (IBM) is a global technology company that provides software, consulting, infrastructure and related services to businesses and public-sector organizations. Its offerings include hybrid cloud and artificial intelligence solutions, enterprise software, IT consulting, and systems such as IBM Z mainframes and Power servers. IBM also develops technologies in areas including data management, automation, cybersecurity and quantum computing. Its consulting teams help clients design, build and manage technology systems and business processes.
About CI&T
CI&T is a global technology and digital transformation company that helps organizations develop and improve digital products, services and operations. Its offerings include technology consulting, product design, software development, data and artificial intelligence solutions, cloud services and modernization of existing systems. Founded in Brazil in 1995, the company serves clients across multiple industries and geographies, including North America, Latin America and Europe. CI&T works with organizations on initiatives ranging from digital strategy and customer experiences to the design and implementation of technology platforms.
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