Analyzing International Business Machines (NYSE:IBM) and Digital China (OTCMKTS:DCHIF)

Digital China (OTCMKTS:DCHIF) and International Business Machines (NYSE:IBM) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Analyst Ratings

This is a summary of current ratings for Digital China and International Business Machines, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digital China	0	0	0	0	0.00
International Business Machines	1	7	8	1	2.53

International Business Machines has a consensus price target of $288.00, indicating a potential downside of 6.16%. Given International Business Machines’ stronger consensus rating and higher possible upside, analysts clearly believe International Business Machines is more favorable than Digital China.

Risk & Volatility

Digital China has a beta of -0.17, suggesting that its share price is 117% less volatile than the S&P 500. Comparatively, International Business Machines has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Institutional & Insider Ownership

59.0% of International Business Machines shares are held by institutional investors. 0.2% of International Business Machines shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Digital China	N/A	N/A	N/A
International Business Machines	12.09%	37.76%	7.18%

Valuation and Earnings

This table compares Digital China and International Business Machines”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digital China	$2.32 billion	0.28	-$35.32 million	N/A	N/A
International Business Machines	$65.40 billion	4.39	$6.02 billion	$8.36	36.71

International Business Machines has higher revenue and earnings than Digital China.

Summary

International Business Machines beats Digital China on 13 of the 13 factors compared between the two stocks.

About Digital China

Digital China Holdings Limited, an investment holding company, provides big data products and solutions for government and enterprise customers primarily in Mainland China. The Big Data Products and Solutions segment sells data software products focused on spatial-temporal big data and artificial intelligence. This segment offers data fabric comprising Yan Cloud DaaS, a software platform that supports data sharing, interoperability, and integration of isolated digital islands; and Sysnet, an integration platform that integrates various data, applications, and services. It also provides data hub, including data management, security, innovation, and aggregation products; and digital twin, which constructs a digital replica of the physical city, as well as data solutions for city and supply chain digital native transformation, and fintech. The Software and Operating Services segment offers end-to-end data-enabled supply chain operating services, as well as software development, testing, operation, and maintenance services. The Traditional and Localization Services segment provides systems integration services, e-commerce supply chain services, and software and operating services. The segment also engages in the investments, property sales and rental, and other businesses. The company also engages in the provision of logistics, systems integration, and manpower services, as well as engages in finance lease business and investment holding activities. Digital China Holdings Limited was incorporated in 2000 and is headquartered in Wan Chai, Hong Kong.

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.