Better Buy: Cisco Systems, Inc. vs. IBM

There are a lot of similarities between Cisco (NASDAQ: CSCO) and IBM (NYSE: IBM). Both have experienced some rough patches as they've plowed through their ongoing transitions. In the view of Cisco CEO Chuck Robbins, his company's future is in cloud infrastructure-as-a-service (IaaS) and its growing suite of software offerings. Meanwhile, IBM CEO Ginni Rometty has spent the last few years transforming her company away from its legacy hardware businesses to focus on what are widely viewed as rapid-growth markets. IBM has gone all in on its "strategic imperatives" -- the cloud, big data and cognitive computing, mobile, social, and data security.

Both tech giants are trading at bargain-basement prices, offer strong dividend yields, and are making progress in cutting costs. So which is the better buy today?

Image source: IBM.

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Source: Fool.com