International Business Machines Corporation (IBM) & Verisk Analytics (NASDAQ:VRSK) Head to Head Contrast
Verisk Analytics (NASDAQ: VRSK) and International Business Machines Corporation (NYSE:IBM) are both large-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitabiliy, analyst recommendations, earnings, institutional ownership and dividends.
Risk & Volatility
Verisk Analytics has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, International Business Machines Corporation has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.
Valuation and Earnings
This table compares Verisk Analytics and International Business Machines Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Verisk Analytics||$2.01 billion||7.06||$933.90 million||$3.55||24.19|
|International Business Machines Corporation||$79.39 billion||1.82||$17.94 billion||$12.16||12.66|
International Business Machines Corporation has higher revenue and earnings than Verisk Analytics. International Business Machines Corporation is trading at a lower price-to-earnings ratio than Verisk Analytics, indicating that it is currently the more affordable of the two stocks.
International Business Machines Corporation pays an annual dividend of $6.00 per share and has a dividend yield of 3.9%. Verisk Analytics does not pay a dividend. International Business Machines Corporation pays out 49.3% of its earnings in the form of a dividend. International Business Machines Corporation has increased its dividend for 17 consecutive years.
Institutional & Insider Ownership
92.0% of Verisk Analytics shares are held by institutional investors. Comparatively, 58.2% of International Business Machines Corporation shares are held by institutional investors. 3.4% of Verisk Analytics shares are held by company insiders. Comparatively, 0.2% of International Business Machines Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Verisk Analytics and International Business Machines Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|International Business Machines Corporation||14.62%||74.46%||11.10%|
This is a summary of recent ratings and recommmendations for Verisk Analytics and International Business Machines Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|International Business Machines Corporation||6||15||6||0||2.00|
Verisk Analytics currently has a consensus price target of $85.38, suggesting a potential downside of 0.58%. International Business Machines Corporation has a consensus price target of $160.47, suggesting a potential upside of 4.20%. Given International Business Machines Corporation’s higher probable upside, analysts clearly believe International Business Machines Corporation is more favorable than Verisk Analytics.
International Business Machines Corporation beats Verisk Analytics on 9 of the 17 factors compared between the two stocks.
Verisk Analytics Company Profile
Verisk Analytics, Inc. is a data analytics provider serving customers in insurance, natural resources and financial services. The Company operates through two segments: Risk Assessment and Decision Analytics. Its Risk Assessment segment serves its property and casualty insurance customers and focuses on prediction of loss, selection and pricing of risk, and compliance with their reporting requirements in each United States state in which they operate. In the Decision Analytics segment, the Company develops predictive models to forecast scenarios and produce both standard and customized analytics that help its customers manage their businesses, including predicting loss, selecting and pricing risk, detecting fraud before and after a loss event, and quantifying losses. It offers predictive analytics and decision support solutions to customers in rating, underwriting, claims, catastrophe and weather risk, natural resources intelligence, economic forecasting and various other fields.
International Business Machines Corporation Company Profile
International Business Machines Corporation (IBM) is a technology company. The Company operates through five segments: Cognitive Solutions, Global Business Services (GBS), Technology Services & Cloud Platforms, Systems and Global Financing. The Cognitive Solutions segment delivers a spectrum of capabilities, from descriptive, predictive and prescriptive analytics to cognitive systems. Cognitive Solutions includes Watson, a cognitive computing platform that has the ability to interact in natural language, process big data, and learn from interactions with people and computers. The GBS segment provides clients with consulting, application management services and global process services. The Technology Services & Cloud Platforms segment provides information technology infrastructure services. The Systems segment provides clients with infrastructure technologies. The Global Financing segment includes client financing, commercial financing, and remanufacturing and remarketing.
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