APP vs. IBM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at APP and IBM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
IBM’s market capitalization of 271.36 billion USD is significantly greater than APP’s 115.62 billion USD, highlighting its more substantial market valuation.
APP’s beta of 2.53 points to significantly higher volatility compared to IBM (beta: 0.65), suggesting APP has greater potential for both gains and losses relative to market movements.
| Symbol | APP | IBM |
|---|---|---|
| Company Name | AppLovin Corporation | International Business Machines Corporation |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Software - Application | Information Technology Services |
| CEO | Adam Arash Foroughi | Arvind Krishna |
| Price | 341.64 USD | 291.97 USD |
| Market Cap | 115.62 billion USD | 271.36 billion USD |
| Beta | 2.53 | 0.65 |
| Exchange | NASDAQ | NYSE |
| IPO Date | April 15, 2021 | September 24, 1915 |
| ADR | No | No |
Historical Performance
This chart compares the performance of APP and IBM by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
APP
224.68%
Software - Application Industry
- Max
- 59.01%
- Q3
- 17.85%
- Median
- 4.73%
- Q1
- -10.56%
- Min
- -52.94%
APP’s Return on Equity of 224.68% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
IBM
21.32%
Information Technology Services Industry
- Max
- 47.24%
- Q3
- 23.27%
- Median
- 12.85%
- Q1
- 2.22%
- Min
- -26.63%
IBM’s Return on Equity of 21.32% is on par with the norm for the Information Technology Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
APP
48.77%
Software - Application Industry
- Max
- 35.07%
- Q3
- 9.72%
- Median
- 0.76%
- Q1
- -8.68%
- Min
- -34.12%
APP’s Return on Invested Capital of 48.77% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
IBM
8.48%
Information Technology Services Industry
- Max
- 28.29%
- Q3
- 13.19%
- Median
- 7.24%
- Q1
- 0.23%
- Min
- -18.82%
IBM’s Return on Invested Capital of 8.48% is in line with the norm for the Information Technology Services industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
APP
37.39%
Software - Application Industry
- Max
- 48.14%
- Q3
- 16.07%
- Median
- 1.83%
- Q1
- -9.60%
- Min
- -45.64%
A Net Profit Margin of 37.39% places APP in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.
IBM
8.71%
Information Technology Services Industry
- Max
- 20.47%
- Q3
- 11.62%
- Median
- 5.97%
- Q1
- 1.89%
- Min
- -4.62%
IBM’s Net Profit Margin of 8.71% is aligned with the median group of its peers in the Information Technology Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
APP
42.86%
Software - Application Industry
- Max
- 51.67%
- Q3
- 15.35%
- Median
- 1.79%
- Q1
- -12.42%
- Min
- -45.17%
An Operating Profit Margin of 42.86% places APP in the upper quartile for the Software - Application industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
IBM
16.36%
Information Technology Services Industry
- Max
- 29.42%
- Q3
- 14.75%
- Median
- 8.92%
- Q1
- 2.62%
- Min
- -11.92%
An Operating Profit Margin of 16.36% places IBM in the upper quartile for the Information Technology Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | APP | IBM |
|---|---|---|
| Return on Equity (TTM) | 224.68% | 21.32% |
| Return on Assets (TTM) | 33.64% | 3.76% |
| Return on Invested Capital (TTM) | 48.77% | 8.48% |
| Net Profit Margin (TTM) | 37.39% | 8.71% |
| Operating Profit Margin (TTM) | 42.86% | 16.36% |
| Gross Profit Margin (TTM) | 77.40% | 57.04% |
Financial Strength
Current Ratio
APP
1.68
Software - Application Industry
- Max
- 5.09
- Q3
- 2.84
- Median
- 1.70
- Q1
- 1.12
- Min
- 0.04
APP’s Current Ratio of 1.68 aligns with the median group of the Software - Application industry, indicating that its short-term liquidity is in line with its sector peers.
IBM
1.01
Information Technology Services Industry
- Max
- 3.41
- Q3
- 2.37
- Median
- 1.58
- Q1
- 1.20
- Min
- 0.00
IBM’s Current Ratio of 1.01 falls into the lower quartile for the Information Technology Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
APP
6.45
Software - Application Industry
- Max
- 1.85
- Q3
- 0.77
- Median
- 0.18
- Q1
- 0.05
- Min
- 0.00
With a Debt-to-Equity Ratio of 6.45, APP operates with exceptionally high leverage compared to the Software - Application industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
IBM
2.49
Information Technology Services Industry
- Max
- 2.63
- Q3
- 1.16
- Median
- 0.48
- Q1
- 0.09
- Min
- 0.01
IBM’s leverage is in the upper quartile of the Information Technology Services industry, with a Debt-to-Equity Ratio of 2.49. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio
APP
7.41
Software - Application Industry
- Max
- 39.23
- Q3
- 8.55
- Median
- 1.48
- Q1
- -14.59
- Min
- -39.97
APP’s Interest Coverage Ratio of 7.41 is positioned comfortably within the norm for the Software - Application industry, indicating a standard and healthy capacity to cover its interest payments.
IBM
5.92
Information Technology Services Industry
- Max
- 17.52
- Q3
- 10.04
- Median
- 4.66
- Q1
- 0.80
- Min
- -10.50
IBM’s Interest Coverage Ratio of 5.92 is positioned comfortably within the norm for the Information Technology Services industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | APP | IBM |
|---|---|---|
| Current Ratio (TTM) | 1.68 | 1.01 |
| Quick Ratio (TTM) | 1.68 | 0.97 |
| Debt-to-Equity Ratio (TTM) | 6.45 | 2.49 |
| Debt-to-Asset Ratio (TTM) | 0.65 | 0.46 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.20 | 4.53 |
| Interest Coverage Ratio (TTM) | 7.41 | 5.92 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for APP and IBM. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
APP
0.00%
Software - Application Industry
- Max
- 3.66%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
IBM
2.29%
Information Technology Services Industry
- Max
- 16.57%
- Q3
- 1.39%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.29%, IBM offers a more attractive income stream than most of its peers in the Information Technology Services industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
APP
0.00%
Software - Application Industry
- Max
- 81.09%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
IBM
112.81%
Information Technology Services Industry
- Max
- 112.81%
- Q3
- 20.98%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
IBM’s Dividend Payout Ratio of 112.81% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | APP | IBM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.29% |
| Dividend Payout Ratio (TTM) | 0.00% | 112.81% |
Valuation
Price-to-Earnings Ratio
APP
60.47
Software - Application Industry
- Max
- 194.31
- Q3
- 98.56
- Median
- 51.87
- Q1
- 22.76
- Min
- 1.02
APP’s P/E Ratio of 60.47 is within the middle range for the Software - Application industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
IBM
49.51
Information Technology Services Industry
- Max
- 49.12
- Q3
- 36.91
- Median
- 24.84
- Q1
- 15.88
- Min
- 1.55
At 49.51, IBM’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Information Technology Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
APP
2.46
Software - Application Industry
- Max
- 15.44
- Q3
- 6.57
- Median
- 2.78
- Q1
- 0.55
- Min
- 0.00
APP’s Forward PEG Ratio of 2.46 is within the middle range of its peers in the Software - Application industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
IBM
9.51
Information Technology Services Industry
- Max
- 5.35
- Q3
- 3.79
- Median
- 2.23
- Q1
- 1.19
- Min
- 0.03
IBM’s Forward PEG Ratio of 9.51 is exceptionally high for the Information Technology Services industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
Price-to-Sales Ratio
APP
22.51
Software - Application Industry
- Max
- 23.49
- Q3
- 11.14
- Median
- 5.62
- Q1
- 2.84
- Min
- 0.33
APP’s P/S Ratio of 22.51 is in the upper echelon for the Software - Application industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
IBM
4.32
Information Technology Services Industry
- Max
- 8.15
- Q3
- 4.17
- Median
- 2.14
- Q1
- 1.00
- Min
- 0.10
IBM’s P/S Ratio of 4.32 is in the upper echelon for the Information Technology Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
APP
201.77
Software - Application Industry
- Max
- 21.03
- Q3
- 10.49
- Median
- 6.36
- Q1
- 2.89
- Min
- 0.12
The P/B Ratio is often not a primary valuation metric for the Software - Application industry.
IBM
10.08
Information Technology Services Industry
- Max
- 11.78
- Q3
- 6.14
- Median
- 3.23
- Q1
- 1.97
- Min
- 0.42
The P/B Ratio is often not a primary valuation metric for the Information Technology Services industry.
Valuation at a Glance
| Symbol | APP | IBM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 60.47 | 49.51 |
| Forward PEG Ratio (TTM) | 2.46 | 9.51 |
| Price-to-Sales Ratio (P/S, TTM) | 22.51 | 4.32 |
| Price-to-Book Ratio (P/B, TTM) | 201.77 | 10.08 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 45.64 | 22.73 |
| EV-to-EBITDA (TTM) | 45.16 | 26.54 |
| EV-to-Sales (TTM) | 23.13 | 5.21 |