International Business Machines (NYSE:IBM) vs. Kyndryl (NYSE:KD) Head-To-Head Comparison

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for International Business Machines and Kyndryl, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Business Machines	2	13	19	0	2.50
Kyndryl	2	7	0	0	1.78

International Business Machines currently has a consensus price target of $266.12, suggesting a potential upside of 3.23%. Kyndryl has a consensus price target of $16.50, suggesting a potential upside of 19.48%. Given Kyndryl’s higher possible upside, analysts plainly believe Kyndryl is more favorable than International Business Machines.

Volatility & Risk

International Business Machines has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Kyndryl has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500.

Insider and Institutional Ownership

59.0% of International Business Machines shares are owned by institutional investors. Comparatively, 71.5% of Kyndryl shares are owned by institutional investors. 0.3% of International Business Machines shares are owned by insiders. Comparatively, 2.0% of Kyndryl shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares International Business Machines and Kyndryl’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%
Kyndryl	0.58%	12.24%	1.33%

Valuation and Earnings

This table compares International Business Machines and Kyndryl”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	3.61	$10.59 billion	$11.73	21.98
Kyndryl	$14.97 billion	0.20	$199.00 million	$0.37	37.32

International Business Machines has higher revenue and earnings than Kyndryl. International Business Machines is trading at a lower price-to-earnings ratio than Kyndryl, indicating that it is currently the more affordable of the two stocks.

Summary

International Business Machines beats Kyndryl on 9 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 Kyndryl

Kyndryl Holdings, Inc. operates as a technology services company and IT infrastructure services provider worldwide. The company offers cloud services; core enterprise and zCloud services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services. It serves financial, communications, retail and travel, and automotive industries. The company was incorporated in 2020 and is headquartered in New York, New York.