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APP vs. IBM: AppLovin vs. IBM Stock Comparison

How do AppLovin (APP) and IBM (IBM) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

AppLovin (APP) and IBM (IBM) both fall under the Software & Services industry group, but APP is classified in Software while IBM is classified in IT Services.

IBM (IBM) has more than two decades of public-market history since January 2, 1962, whereas AppLovin (APP) listed on April 15, 2021 and has a much shorter record to draw on.

Company profile comparison for AppLovin (APP) and IBM (IBM)
Profile ItemAPPIBM
NameAppLovin Corporation Class A Common StockInternational Business Machines Corporation
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareIT Services
GICS Sub-IndustryApplication SoftwareIT Consulting & Other Services
Market Capitalization129.62 billion USD231.55 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateApril 15, 2021January 2, 1962
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

APP
IBM
GSPC
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AppLovin (APP) vs. IBM (IBM), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for AppLovin (APP) and IBM (IBM). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for AppLovin (APP) and IBM (IBM). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for AppLovin (APP) and IBM (IBM)
MetricAPPIBM
Total Return (1Y)-34.71%-16.98%
Total Return (3Y, Annualized)116.87%22.40%
Total Return (5Y, Annualized)31.34%19.64%

Risk Profile

Drawdown History

APP
IBM
GSPC
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AppLovin (APP) vs. IBM (IBM), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for AppLovin (APP) and IBM (IBM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

AppLovin (APP) carries a highly aggressive beta of 2.25, indicating much higher sensitivity to broad-market moves, whereas IBM (IBM) is closer to market-like at 0.79 — a noticeable difference in market-sensitivity profile.

Risk profile metrics for AppLovin (APP) and IBM (IBM)
MetricAPPIBM
Volatility (1Y, Annualized)80.36%48.48%
Beta (5Y)2.250.79
Max Drawdown (5Y)-91.90%-37.50%
Avg. Volume (3M)5.33M5.30M

Risk-Adjusted Performance

Risk-Return Positioning

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APP and IBM are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for AppLovin (APP) and IBM (IBM)
MetricAPPIBM
Sharpe Ratio (1Y)-0.49-0.44
Sortino Ratio (1Y)-0.69-0.56

Profitability

ROE (TTM)

Both companies show strong equity returns, but AppLovin (APP) at 210.09% is the standout with ROE above its industry range; IBM (IBM) at 34.77% also sits in the top quartile.

APP

Software & Services industry group

210.09%

APP
210.09%
Max
53.85%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%

IBM

Software & Services industry group

34.77%

Max
53.85%
IBM
34.77%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%
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AppLovin (APP) vs. IBM (IBM): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

AppLovin (APP) at 65.89% keeps the most of each sales dollar — above its industry’s net margin range — and IBM (IBM) at 15.99% also retains a top-quartile share.

APP

Software & Services industry group

65.89%

APP
65.89%
Max
41.17%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%

IBM

Software & Services industry group

15.99%

Max
41.17%
IBM
15.99%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%
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AppLovin (APP) vs. IBM (IBM): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

AppLovin (APP) at 78.22% turns sales into operating profit above its industry’s benchmark range, while IBM (IBM) at 16.97% operates around its industry’s norm.

APP

Software & Services industry group

78.22%

APP
78.22%
Max
46.89%
Q3
17.64%
Median
8.73%
Q1
-2.13%
Min
-30.45%

IBM

Software & Services industry group

16.97%

Max
46.89%
Q3
17.64%
IBM
16.97%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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AppLovin (APP) vs. IBM (IBM): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for AppLovin (APP) and IBM (IBM)
MetricAPPIBM
ROE (TTM)210.09%34.77%
ROA (TTM)49.57%5.33%
Net Margin (TTM)65.89%15.99%
Operating Margin (TTM)78.22%16.97%
Gross Margin (TTM)88.78%57.97%

Growth

Revenue Growth

AppLovin (APP) at 69.99% clears its industry range for revenue growth, far stronger top-line momentum than IBM (IBM) at 7.62%, which is closer to a typical peer reading.

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AppLovin (APP) vs. IBM (IBM): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both AppLovin (APP) at 115.23% and IBM (IBM) at 73.72% sit in the top peer quartile for EPS growth, so each is compounding per-share earnings faster than typical industry peers.

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AppLovin (APP) vs. IBM (IBM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for AppLovin (APP) and IBM (IBM)
MetricAPPIBM
Revenue Growth (YoY)69.99%7.62%
Revenue Growth (3Y CAGR)24.84%3.72%
EPS Growth (YoY)115.23%73.72%
EPS Growth (3Y CAGR)--83.76%

Financial Strength

Current Ratio (MRQ)

AppLovin (APP) at 3.81 carries current ratio above its industry’s typical mid-range, while IBM (IBM) at 0.86 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.

APP

Software & Services industry group

3.81

Max
5.11
APP
3.81
Q3
2.77
Median
1.67
Q1
1.01
Min
0.03

IBM

Software & Services industry group

0.86

Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
IBM
0.86
Min
0.03
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AppLovin (APP) vs. IBM (IBM): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

AppLovin (APP) at 1.07 carries an industry-typical debt-to-equity mix, while IBM (IBM) at 1.85 uses more debt funding than most peers.

APP

Software & Services industry group

1.07

Max
2.52
Q3
1.13
APP
1.07
Median
0.40
Q1
0.07
Min
0.00

IBM

Software & Services industry group

1.85

Max
2.52
IBM
1.85
Q3
1.13
Median
0.40
Q1
0.07
Min
0.00
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AppLovin (APP) vs. IBM (IBM): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for AppLovin (APP) and IBM (IBM)
MetricAPPIBM
Current Ratio (MRQ)3.810.86
Debt / Equity (MRQ)1.071.85
Net Debt / EBITDA0.063.37

Dividends

Dividend Yield (TTM)

AppLovin (APP) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile IBM (IBM) reports a yield of 2.73%, ranking against industry peers normally.

APP

Software & Services industry group

0.00%

APP
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

IBM

Software & Services industry group

2.73%

IBM
2.73%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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AppLovin (APP) vs. IBM (IBM): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

AppLovin (APP) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile IBM (IBM) reports a payout of 57.51%, ranking against industry peers normally.

APP

Software & Services industry group

0.00%

APP
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

IBM

Software & Services industry group

57.51%

IBM
57.51%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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AppLovin (APP) vs. IBM (IBM): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for AppLovin (APP) and IBM (IBM)
MetricAPPIBM
Dividend Yield (TTM)0.00%2.73%
Dividend Payout Ratio (TTM)0.00%57.51%

Valuation

P/E Ratio (TTM)

Both AppLovin (APP) at 26.34 and IBM (IBM) at 20.90 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

APP

Software & Services industry group

26.34

Max
112.94
Q3
60.32
Median
32.91
APP
26.34
Q1
18.77
Min
6.69

IBM

Software & Services industry group

20.90

Max
112.94
Q3
60.32
Median
32.91
IBM
20.90
Q1
18.77
Min
6.69
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AppLovin (APP) vs. IBM (IBM): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

IBM (IBM) at 3.31 is priced about in line with its industry on P/S ratio, while AppLovin (APP) at 17.04 sits in the pricier quartile — APP costs more per dollar of sales.

APP

Software & Services industry group

17.04

Max
17.91
APP
17.04
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02

IBM

Software & Services industry group

3.31

Max
17.91
Q3
8.78
Median
4.25
IBM
3.31
Q1
2.23
Min
0.02
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AppLovin (APP) vs. IBM (IBM): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

IBM (IBM) at 6.52 sits near its industry’s typical P/B ratio, while AppLovin (APP) at 39.29 prices above its benchmark range — APP looks rich relative to book.

APP

Software & Services industry group

39.29

APP
39.29
Max
16.63
Q3
8.50
Median
4.30
Q1
1.92
Min
-3.90

IBM

Software & Services industry group

6.52

Max
16.63
Q3
8.50
IBM
6.52
Median
4.30
Q1
1.92
Min
-3.90
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AppLovin (APP) vs. IBM (IBM): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for AppLovin (APP) and IBM (IBM)
MetricAPPIBM
P/E Ratio (TTM)26.3420.90
P/S Ratio (TTM)17.043.31
P/B Ratio (MRQ)39.296.52
Free Cash Flow Yield (TTM)2.87%5.34%