International Business Machines (NYSE:IBM – Get Free Report) and TSS (NASDAQ:TSSI – Get Free Report) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.
Valuation & Earnings
This table compares International Business Machines and TSS”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 | 3.54 | $10.59 billion | $11.73 | 21.63 |
| TSS | $245.72 million | 0.80 | $15.12 million | $0.48 | 14.44 |
International Business Machines has higher revenue and earnings than TSS. TSS 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 Recommendations
This is a summary of current ratings and recommmendations for International Business Machines and TSS, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| International Business Machines | 2 | 12 | 20 | 0 | 2.53 |
| TSS | 0 | 2 | 1 | 0 | 2.33 |
International Business Machines presently has a consensus price target of $266.12, suggesting a potential upside of 4.90%. TSS has a consensus price target of $14.00, suggesting a potential upside of 102.02%. Given TSS’s higher possible upside, analysts plainly believe TSS is more favorable than International Business Machines.
Institutional & Insider Ownership
59.0% of International Business Machines shares are owned by institutional investors. 0.3% of International Business Machines shares are owned by insiders. Comparatively, 16.0% of TSS shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
International Business Machines has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, TSS has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500.
Profitability
This table compares International Business Machines and TSS’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% |
| TSS | 7.44% | 19.22% | 8.46% |
Summary
International Business Machines beats TSS on 10 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 TSS
TSS, Inc. offers planning, design, engineering, construction management, commissioning and maintenance services. It provides these services primarily for specialized facilities such as data centers, communications rooms, call centers, laboratories, trading floors, network operations centers, medical facilities and similar environments. TSS Inc., formerly known as Fortress International Group, Inc., is based in Columbia, United States.
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