International Business Machines (NYSE:IBM – Get Free Report) and Allbirds (NASDAQ:BIRD – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Profitability
This table compares International Business Machines and Allbirds’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| International Business Machines | 15.52% | 35.65% | 7.54% |
| Allbirds | -72.82% | -231.86% | -81.53% |
Risk & Volatility
International Business Machines has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Allbirds has a beta of 2.62, meaning that its stock price is 162% more volatile than the S&P 500.
Institutional & Insider Ownership
Earnings & Valuation
This table compares International Business Machines and Allbirds”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 | 3.09 | $10.59 billion | $11.27 | 19.64 |
| Allbirds | $152.47 million | 0.14 | -$77.28 million | ($8.99) | -0.26 |
International Business Machines has higher revenue and earnings than Allbirds. Allbirds 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.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for International Business Machines and Allbirds, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| International Business Machines | 1 | 10 | 17 | 0 | 2.57 |
| Allbirds | 1 | 1 | 0 | 0 | 1.50 |
International Business Machines presently has a consensus price target of $265.16, suggesting a potential upside of 19.82%. Given International Business Machines’ stronger consensus rating and higher probable upside, equities research analysts clearly believe International Business Machines is more favorable than Allbirds.
Summary
International Business Machines beats Allbirds on 12 of the 14 factors compared between the two stocks.
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.
About Allbirds
Allbirds, Inc. manufactures and sells footwear and apparel products for men and women in the United States and internationally. The company offers a range of lifestyle and performance shoes; and apparel, including classic tees and sweats, socks, and underwear. It sells its products through its retail stores, as well as online. The company was formerly known as Bozz, Inc. and changed its name to Allbirds, Inc. in December 2015. Allbirds, Inc. was incorporated in 2015 and is headquartered in San Francisco, California.
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