Head to Head Comparison: International Business Machines (NYSE:IBM) vs. CI&T (NYSE:CINT)

International Business Machines (NYSE:IBM) and CI&T (NYSE:CINT) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Institutional & Insider Ownership

59.0% of International Business Machines shares are owned by institutional investors. Comparatively, 92.4% of CI&T shares are owned by institutional investors. 0.3% of International Business Machines shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

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%

Valuation and Earnings

This table compares International Business Machines and CI&T”s top-line 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	3.42	$10.59 billion	$11.73	20.86
CI&T	$489.65 million	0.85	$40.62 million	$0.29	10.66

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.

Analyst Ratings

This is a summary of recent recommendations for International Business Machines and CI&T, as provided by MarketBeat.

	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 price target of $266.88, indicating a potential upside of 9.06%. CI&T has a consensus price target of $6.08, indicating a potential upside of 96.56%. Given CI&T’s higher probable upside, analysts clearly believe CI&T is more favorable than International Business Machines.

Risk and 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, 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 CI&T

CI&T, Inc. provides strategy, design and software engineering services to enable digital transformation. The firm’s solutions and services include Digital Strategy, Customer-Centric Design and Top-of-the-Line Software Engineering. The company was founded by Cesar Nivaldo Gon, Bruno Guiçardi Neto and Fernando Matt Borges Martins on June 7, 2021 and is headquartered in Sao Paulo, Brazil.