IBM vs. Microsoft: One Has 58% Upside and Nearly 4x the Yield. The Better Buy May Surprise You.

There was a time when International Business Machines (IBM) had the same profile that Microsoft (MSFT) enjoys today: one of the world’s biggest tech companies and most recognizable brands.

Today, the narrative couldn’t be more different. 

For investors, though, the question is much more nuanced. IBM may no longer have Microsoft’s growth profile, but that doesn’t automatically make MSFT the better stock – at least not at the moment. 

So, if you had to choose between the two, which is the better buy right now? And why? 

Let’s dive into the story. 

How IBM and Microsoft’s Fortunes Diverged: A Brief History

But first, a quick history lesson. 

IBM was once one of the most dominant and valuable companies in the world. And I’m not talking about being on top for a few short years here. No, IBM was the market leader in computers for decades and was, at one time, worth more than many of its closest competitors combined. When you needed an enterprise or office computer back then,…