Is Gartner a Better Buy Than International Business Machines?
Even as International Business Machines surged 7.9% during the past Day, its peer Gartner may be a better choice. Consistently evaluating alternatives is core to sound investment approach. 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 5.9%, vs. IBM’s 4.5%.
- In addition, its Last 3-Year Average revenue growth came in at 8.0%, ahead of IBM’s 2.6%.
- IT leads on profitability over both periods – LTM margin of 18.2% and 3-year average of 19.0%.
Single stock can be risky, but there is a huge value to a broader diversified approach we take with Trefis High Quality Portfolio. Separately, consider what could long-term performance for your portfolio be if you combined 10% commodities, 10% gold, and 2% crypto with equities.
IBM provides global integrated solutions and services across software, consulting, infrastructure, and financing, including hybrid cloud platforms, open-source software, and on-premises and cloud server/storage solutions. IT provides research, conferences for professional networking, and consulting services including market research, custom analysis, and support to help businesses make informed decisions.
Valuation & Performance Overview
- International Business Machines Stock Pays Out $76 Bil – Investors Take Note
- Buy or Sell International Business Machines Stock?
- 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?
- A Decade of Rewards: IBM Returns $77 Bil to Investors
| IBM | IT | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 24.9 | 16.5 | IT |
| Revenue Growth | |||
| Last Quarter | 9.1% | 5.7% | IBM |
| Last 12 Months | 4.5% | 5.9% | IT |
| Last 3 Year Average | 2.6% | 8.0% | IT |
| Operating Margins | |||
| Last 12 Months | 17.7% | 18.2% | IT |
| Last 3 Year Average | 16.4% | 19.0% | IT |
| Momentum | |||
| Last 3 Year Return | 160.2% | -15.0% | 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
But do these numbers tell the full story? Read Buy or Sell IT Stock to see if Gartner’s edge holds up under the hood or if International Business Machines still has cards to play (see Buy or Sell IBM Stock).
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| IBM Return | -1% | 16% | 11% | 22% | 39% | 32% | 181% | <=== | |
| IT Return | 4% | 109% | 1% | 34% | 7% | -48% | 53% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 15% | 106% | ||
| Monthly Win Rates [3] | |||||||||
| IBM Win Rate | 58% | 58% | 50% | 67% | 75% | 44% | 59% | ||
| IT Win Rate | 58% | 75% | 42% | 50% | 67% | 44% | 56% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 67% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| IBM Max Drawdown | -29% | -6% | -9% | -12% | -3% | -1% | -10% | <=== | |
| IT Max Drawdown | -46% | -5% | -33% | -12% | -9% | -53% | -26% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | ||
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 10/24/2025 (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.