IBM Shares Rally 5.2% In A Day: How Does the Competition Measure Up?
Here is how International Business Machines (IBM) stacks up against its peers in size, valuation, growth and margin.
- IBM’s operating margin of 17.1% is strong, lower than most peers – trailing MSFT (45.6%).
- IBM’s revenue growth of 2.7% in the last 12 months is low, lagging MSFT, ORCL, SAP, GLOB but outpacing INTC.
- IBM’s stock gained 30.8% over the past year and trades at a PE of 44.9, though peers like ORCL, INTC delivered stronger returns.
As a quick background, International Business Machines provides integrated global solutions and services across software, consulting, infrastructure, and financing, including hybrid cloud platforms, open-source software, and server and storage solutions.
| IBM | MSFT | ORCL | SAP | INTC | GLOB | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 262.0 | 3,767.2 | 823.3 | 306.1 | 148.5 | 2.5 |
| Revenue ($ Bil) | 64.0 | 281.7 | 59.0 | 35.9 | 53.1 | 2.5 |
| PE Ratio | 44.9 | 37.0 | 66.2 | 46.8 | -7.2 | 22.5 |
| LTM Revenue Growth | 2.7% | 14.9% | 9.7% | 10.3% | -3.7% | 8.7% |
| LTM Operating Margin | 17.1% | 45.6% | 31.6% | 25.9% | -8.3% | 7.5% |
| LTM FCF Margin | 18.2% | 25.4% | -10.0% | 17.8% | -20.6% | 6.2% |
| 12M Market Return | 30.8% | 18.2% | 77.0% | 18.6% | 44.4% | -71.0% |
Why does this matter? IBM just went up 16% in a month – peer comparison puts stock performance, valuation, and financials in context – highlighting whether it is truly outperforming, lagging behind, and above all – can this continue? Read Buy or Sell IBM Stock to see if International Business Machines holds up as a quality investment. Furthermore, there is always a risk of fall after a strong rally – see how the stock has dipped and recovered in the past through IBM Dip Buyer Analysis lens.
While peer comparison is critical Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risks while giving upside exposure.
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- What’s Next For IBM Stock?
- IBM Earnings Preview: How To Position For Upcoming Results
- IBM Soars 16% In A Single Month: How Does It Compare With Others?
Revenue Growth Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| IBM | 2.7% | – | 1.4% | 2.2% | 5.5% |
| MSFT | 14.9% | 14.9% | 15.7% | 6.9% | |
| ORCL | 9.7% | 8.4% | 6.0% | 17.7% | |
| SAP | 10.3% | – | 9.5% | 5.7% | 9.5% |
| INTC | -3.7% | – | -2.1% | -14.0% | -20.2% |
| GLOB | 8.7% | – | 15.3% | 17.7% | 37.3% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| IBM | 17.1% | – | 16.1% | 15.9% | 13.5% |
| MSFT | 45.6% | 45.6% | 44.6% | 41.8% | |
| ORCL | 31.6% | 31.5% | 30.3% | 27.6% | |
| SAP | 25.9% | – | 22.8% | 19.3% | 20.5% |
| INTC | -8.3% | – | -8.9% | 0.1% | 3.7% |
| GLOB | 7.5% | – | 9.6% | 10.4% | 12.0% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| IBM | 44.9 | – | 33.6 | 19.9 | 77.5 |
| MSFT | 37.0 | 30.8 | 31.7 | 24.7 | |
| ORCL | 66.2 | 37.4 | 27.6 | 25.9 | |
| SAP | 46.8 | – | 91.9 | 29.4 | 52.9 |
| INTC | -7.2 | – | -4.6 | 124.7 | 13.5 |
| GLOB | 22.5 | – | 56.2 | 63.9 | 47.4 |
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.