Reviewing TSS (NASDAQ:TSSI) & International Business Machines (NYSE:IBM)

International Business Machines (NYSE:IBM – Get Free Report) and TSS (NASDAQ:TSSI – Get Free Report) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Valuation & Earnings

This table compares International Business Machines and TSS”s top-line revenue, earnings per share and valuation.

International Business Machines has higher revenue and earnings than TSS. TSS 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.

Profitability

This table compares International Business Machines and TSS’s net margins, return on equity and return on assets.

Risk & Volatility

International Business Machines has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, TSS has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for International Business Machines and TSS, as reported by MarketBeat.com.

International Business Machines presently has a consensus target price of $266.12, indicating a potential upside of 4.90%. TSS has a consensus target price of $14.00, indicating a potential upside of 102.02%. Given TSS’s higher possible upside, analysts plainly believe TSS is more favorable than International Business Machines.

Institutional & Insider Ownership

59.0% of International Business Machines shares are owned by institutional investors. 0.3% of International Business Machines shares are owned by insiders. Comparatively, 16.0% of TSS shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

International Business Machines beats TSS on 10 of the 14 factors compared between the two stocks.

About International Business Machines

(Get Free Report)

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 TSS

(Get Free Report)

TSS, Inc. offers planning, design, engineering, construction management, commissioning and maintenance services. It provides these services primarily for specialized facilities such as data centers, communications rooms, call centers, laboratories, trading floors, network operations centers, medical facilities and similar environments. TSS Inc., formerly known as Fortress International Group, Inc., is based in Columbia, United States.