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ALAB vs. IBM: A Head-to-Head Stock Comparison

Updated

Here’s a clear look at ALAB and IBM, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

IBM stands out with 242.45 billion USD in market value—about 15.95× ALAB’s market cap of 15.20 billion USD.

IBM carries a higher beta at 0.63, indicating it’s more sensitive to market moves, while ALAB remains steadier at 0.33.

SymbolALABIBM
Company NameAstera Labs, Inc. Common StockInternational Business Machines Corporation
CountryUSUS
SectorTechnologyTechnology
IndustrySemiconductorsInformation Technology Services
CEOMr. Jitendra MohanMr. Arvind Krishna
Price92.17 USD260.87 USD
Market Cap15.20 billion USD242.45 billion USD
Beta0.330.63
ExchangeNASDAQNYSE
IPO DateMarch 20, 2024September 24, 1915
ADRNoNo

Performance Comparison

This chart compares the performance of ALAB and IBM over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

The section examines key financial ratios to assess the valuation of ALAB and IBM based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • ALAB stands out with a premium P/E of 363.38, while IBM at 44.23 remains within a more conventional earnings multiple.
SymbolALABIBM
Price-to-Earnings Ratio (P/E, TTM)363.3844.23
Forward PEG Ratio (TTM)10.908.51
Price-to-Sales Ratio (P/S, TTM)30.993.86
Price-to-Book Ratio (P/B, TTM)14.449.01
Price-to-Free Cash Flow Ratio (P/FCF, TTM)140.5320.31
EV-to-EBITDA (TTM)-832.7724.19
EV-to-Sales (TTM)30.814.75
EV-to-Free Cash Flow (TTM)139.7324.98

Dividend Comparison

ALAB offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while IBM provides a 2.56% dividend yield, giving investors a steady income stream.

SymbolALABIBM
Dividend Yield (TTM)0.00%2.56%

Financial Strength Metrics Comparison

This section dives into the financial resilience of ALAB and IBM, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • ALAB shows “--” for interest coverage, hinting at negligible interest costs, whereas IBM (at 5.92) covers its interest obligations.
SymbolALABIBM
Current Ratio (TTM)13.921.01
Quick Ratio (TTM)13.260.97
Debt-to-Equity Ratio (TTM)0.002.49
Debt-to-Assets Ratio (TTM)0.000.46
Interest Coverage Ratio (TTM)--5.92