Gartner or International Business Machines: Which Stock Has More Upside?
International Business Machines surged 5.1% 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 Gartner gives you more. Gartner (IT) 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 IT
- IT’s Last 12 Months revenue growth was 5.2%, vs. IBM’s 4.5%.
- In addition, its Last 3-Year Average revenue growth came in at 7.0%, ahead of IBM’s 2.6%.
- IT leads on profitability over both periods – LTM margin of 17.9% and 3-year average of 18.7%.
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 IT on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| IBM | IT | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 25.0 | 13.7 | IT |
| Revenue Growth | |||
| Last Quarter | 9.1% | 2.7% | IBM |
| Last 12 Months | 4.5% | 5.2% | IT |
| Last 3 Year Average | 2.6% | 7.0% | IT |
| Operating Margins | |||
| Last 12 Months | 17.7% | 17.9% | IT |
| Last 3 Year Average | 16.4% | 18.7% | IT |
| Momentum | |||
| Last 3 Year Return | 156.7% | -35.9% | IBM |
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 | IT Revenue Comparison
See more margin details: IBM Operating Income Comparison | IT Operating Income Comparison
- IBM Proves Old Tech Can Win At New AI
- Buy or Sell International Business Machines Stock?
- International Business Machines Stock Pays Out $76 Bil – Investors Take Note
- Should You Buy IBM Stock After Yesterday’s Drop?
- International Business Machines Stock Pays Out $76 Bil – Investors Take Note
- Buy or Sell International Business Machines Stock?
See detailed fundamentals on Buy or Sell IT 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% | -1% | 199% | <=== | |
| IT Return | 109% | 1% | 34% | 7% | -48% | -10% | 41% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 2% | 86% | ||
| Monthly Win Rates [3] | |||||||||
| IBM Win Rate | 58% | 50% | 67% | 75% | 50% | 0% | 50% | ||
| IT Win Rate | 75% | 42% | 50% | 67% | 42% | 0% | 46% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 100% | 71% | <=== | |
| Max Drawdowns [4] | |||||||||
| IBM Max Drawdown | -6% | -9% | -12% | -3% | -1% | -2% | -5% | <=== | |
| IT Max Drawdown | -5% | -33% | -12% | -9% | -54% | -12% | -21% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -1% | -7% | ||
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 1/29/2026 (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 IT 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 IT? Consider portfolio approach.
Portfolios Beat Stock Picking
Stocks can jump or crash but long term success comes from staying invested. The right portfolio helps you ride gains and cushion single stock drops
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.