Head-To-Head Review: International Business Machines (IBM) & Intralinks (IL)
International Business Machines (NYSE: IBM) and Intralinks (NYSE:IL) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.
This is a breakdown of current ratings for International Business Machines and Intralinks, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|International Business Machines||6||14||10||0||2.13|
Insider & Institutional Ownership
57.1% of International Business Machines shares are held by institutional investors. Comparatively, 91.2% of Intralinks shares are held by institutional investors. 0.2% of International Business Machines shares are held by insiders. Comparatively, 32.3% of Intralinks shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares International Business Machines and Intralinks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|International Business Machines||14.43%||68.68%||10.82%|
International Business Machines pays an annual dividend of $6.00 per share and has a dividend yield of 3.7%. Intralinks does not pay a dividend. International Business Machines pays out 50.1% of its earnings in the form of a dividend. Intralinks has increased its dividend for 17 consecutive years.
Earnings and Valuation
This table compares International Business Machines and Intralinks’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|International Business Machines||$79.92 billion||1.88||$11.87 billion||$11.98||13.56|
International Business Machines has higher revenue and earnings than Intralinks. Intralinks 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.
International Business Machines beats Intralinks on 9 of the 14 factors compared between the two stocks.
About International Business Machines
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.
Intralinks Holdings, Inc. is a technology provider of software-as-a-service (SaaS) solutions for secure enterprise content collaboration within and among organizations. The Company’s cloud-based solutions enable organizations to manage, control, track, search, exchange and collaborate on sensitive information inside and outside the firewall. Its solutions enables its customers to manage electronic information, accelerate information-intensive business processes, optimize critical information workflows, meet regulatory and risk management requirements, and collaborate with business counterparties. The Company delivers its solutions through a cloud-based model, making them available on-demand over the Internet using a multi-tenant SaaS architecture. The Company serves enterprises and governmental agencies across a range of industries, including financial services, pharmaceutical, manufacturing, biotechnology, consumer, energy, legal, professional services, insurance and technology.
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