International Business Machines Corp. (IBM), Oracle Corporation (ORCL): Who’s Better?

Page 2 of 2

IBM is one company which stands out from the rest due to its strength of disrupted innovation. Growth initiatives like diversification into emerging markets and cloud computing efforts helped the company navigate smoothly during tough periods. Already, the initiatives have started producing results. Revenue from cloud computing services increased 25%, and its China and India businesses grew 4% year on year.

Smarter systems, such as power grids of food production and traffic congestion avoidance systems, signify the innovation IBM is known for. Another aspect of this smarter strategy is the launch of MessageSight, an application that helps organizations communicate with huge numbers of mobile devices. It can be used in automotive, healthcare, and finance.

Summary

IBM has slowly secured its ground by betting big on finding effective solutions to complex business issues. It is planning to invest in key areas like cloud computing, social media, big data, and mobile, and increased the dividend for the eighteenth consecutive year. Looking at all the factors, and specially on innovation and capital distribution, I recommend IBM as a strong ‘buy’ and believe the stock will provide a great return on investment in the future.

The article Why You Should Invest in This Stock Now originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2