IBM Vs. Cisco: IBM Wins By A Dividend And A Manager

10/5/20

By Bill Zettler, SeekingAlpha

Summary

  • In a five-year price chart, Cisco looks better.
  • On financial metrics, IBM has a slight advantage but IBM's dividend puts it way ahead.
  • Growth products are Red Hat for IBM and Webex for Cisco.
  • How do IBM and Cisco's CEOs compare?
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I have written 10 articles on IBM (IBM) mostly recommending them. To say they have disappointed me would be an understatement. My most recent article was "IBM: There's A New Sheriff In Town" where I discuss how new management could lead IBM to a brighter future.

I have also recently written an article on Cisco (CSCO) "Cisco: Several Catalysts Will Push It Higher" where I discuss how coming technological advances such as 5G should propel Cisco higher.

And both companies were included in my comparison of Old Tech vs. utility stocks in this article "Old Tech Stocks Vs. Utilities Dividends: Old Tech Wins By A Landslide".

In this article, I will compare these two tech stalwarts directly to each other to see if either has an advantage over the other.

Here are 4 things to consider when comparing IBM to Cisco.

1. In a five-year price chart, Cisco looks better

Here we can see that Cisco (yellow line) has gone up about 60% in the last 5 years while IBM (blue line) has gone down about 10%.

But on a shorter 1-year basis, IBM sneaks ahead of Cisco but the difference is minor.

Although there is no glaring difference over either period, overall, I give the advantage to Cisco.

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