Can Adeia Outrun International Business Machines in the Next Rally?
International Business Machines fell -8.3% during the past Day. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Adeia gives you more. Adeia (ADEA) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs International Business Machines (IBM) stock, suggesting you may be better off investing in ADEA
- ADEA’s quarterly revenue growth was 53.3%, vs. IBM’s 12.2%.
- In addition, its Last 12 Months revenue growth came in at 17.9%, ahead of IBM’s 7.6%.
- ADEA leads on profitability over both periods – LTM margin of 45.0% and 3-year average of 40.1%.
These differences become even clearer when you look at the financials side by side. The table highlights how IBM’s fundamentals stack up against those of ADEA on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| IBM | ADEA | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 18.9 | 16.7 | ADEA |
| Revenue Growth | |||
| Last Quarter | 12.2% | 53.3% | ADEA |
| Last 12 Months | 7.6% | 17.9% | ADEA |
| Last 3 Year Average | 3.8% | 1.1% | IBM |
| Operating Margins | |||
| Last 12 Months | 18.5% | 45.0% | ADEA |
| Last 3 Year Average | 16.6% | 40.1% | ADEA |
| Momentum | |||
| Last 3 Year Return | 103.7% | 292.7% | ADEA |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: IBM Revenue Comparison | ADEA Revenue Comparison
See more margin details: IBM Operating Income Comparison | ADEA Operating Income Comparison
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- International Business Machines Stock Hands $33 Bil Back – Worth a Look?
- Stress Testing IBM: Historical Drawdowns and Macro Risks
- Stress Testing IBM: Historical Drawdowns and Macro Risks
- Buy or Sell International Business Machines Stock?
- How Low Can IBM Really Go In A Market Crash?
See detailed fundamentals on Buy or Sell ADEA Stock and Buy or Sell IBM Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| IBM Return | 16% | 11% | 22% | 39% | 38% | -13% | 162% | ||
| ADEA Return | -9% | 1% | 34% | 15% | 25% | 73% | 205% | <=== | |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 3% | 88% | ||
| Monthly Win Rates [3] | |||||||||
| IBM Win Rate | 58% | 50% | 67% | 75% | 50% | 75% | 62% | <=== | |
| ADEA Win Rate | 58% | 42% | 58% | 42% | 58% | 100% | 60% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | 62% | ||
| Max Drawdowns [4] | |||||||||
| IBM Max Drawdown | -6% | -9% | -12% | -3% | -1% | -24% | -9% | ||
| ADEA Max Drawdown | -15% | -28% | -24% | -21% | -19% | 0% | -18% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | -9% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 4/23/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read ADEA Dip Buyer Analyses and IBM Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about IBM or ADEA? Consider portfolio approach.
The Best Investors Think In Portfolios
Individual stocks can soar or tank, but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside, and mitigate the downside associated with any individual stock.
Why settle for average market returns? The Trefis High Quality (HQ) Portfolio invests in a diverse group of 30 stocks that have collectively delivered stronger upside with reduced volatility compared to the broader indices. Discover the methodology behind these smoother, higher returns by checking the HQ Portfolio performance data.