CFLT vs. IBM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CFLT and IBM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CFLT | IBM |
|---|---|---|
| Company Name | Confluent, Inc. | International Business Machines Corporation |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Software | IT Services |
| Market Capitalization | 6.79 billion USD | 268.90 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | June 24, 2021 | January 2, 1962 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CFLT 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.
Historical Performance at a Glance
| Symbol | CFLT | IBM |
|---|---|---|
| 5-Day Price Return | 0.30% | 5.47% |
| 13-Week Price Return | -20.58% | -4.28% |
| 26-Week Price Return | -23.73% | 12.71% |
| 52-Week Price Return | 0.51% | 27.77% |
| Month-to-Date Return | -0.30% | 15.88% |
| Year-to-Date Return | -29.18% | 28.35% |
| 10-Day Avg. Volume | 5.55M | 6.49M |
| 3-Month Avg. Volume | 7.31M | 4.69M |
| 3-Month Volatility | 75.49% | 26.73% |
| Beta | 0.96 | 0.69 |
Profitability
Return on Equity (TTM)
CFLT
-31.29%
Software Industry
- Max
- 66.28%
- Q3
- 21.28%
- Median
- 9.33%
- Q1
- -8.77%
- Min
- -48.16%
CFLT has a negative Return on Equity of -31.29%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
IBM
21.99%
IT Services Industry
- Max
- 32.78%
- Q3
- 19.28%
- Median
- 13.86%
- Q1
- 5.50%
- Min
- -10.00%
In the upper quartile for the IT Services industry, IBM’s Return on Equity of 21.99% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
CFLT
-29.27%
Software Industry
- Max
- 51.92%
- Q3
- 19.23%
- Median
- 6.98%
- Q1
- -7.14%
- Min
- -41.00%
CFLT has a negative Net Profit Margin of -29.27%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
IBM
9.11%
IT Services Industry
- Max
- 19.71%
- Q3
- 11.01%
- Median
- 6.66%
- Q1
- 2.96%
- Min
- -6.22%
IBM’s Net Profit Margin of 9.11% is aligned with the median group of its peers in the IT Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
CFLT
-37.29%
Software Industry
- Max
- 60.40%
- Q3
- 21.25%
- Median
- 9.90%
- Q1
- -4.97%
- Min
- -43.50%
CFLT has a negative Operating Profit Margin of -37.29%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
IBM
9.77%
IT Services Industry
- Max
- 22.44%
- Q3
- 14.90%
- Median
- 8.82%
- Q1
- 4.91%
- Min
- -9.89%
IBM’s Operating Profit Margin of 9.77% is around the midpoint for the IT Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | CFLT | IBM |
|---|---|---|
| Return on Equity (TTM) | -31.29% | 21.99% |
| Return on Assets (TTM) | -11.52% | 4.12% |
| Net Profit Margin (TTM) | -29.27% | 9.11% |
| Operating Profit Margin (TTM) | -37.29% | 9.77% |
| Gross Profit Margin (TTM) | 74.22% | 57.57% |
Financial Strength
Current Ratio (MRQ)
CFLT
3.98
Software Industry
- Max
- 4.29
- Q3
- 2.37
- Median
- 1.40
- Q1
- 1.03
- Min
- 0.25
CFLT’s Current Ratio of 3.98 is in the upper quartile for the Software industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
IBM
0.91
IT Services Industry
- Max
- 3.17
- Q3
- 2.00
- Median
- 1.47
- Q1
- 1.05
- Min
- 0.52
IBM’s Current Ratio of 0.91 falls into the lower quartile for the IT 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 (MRQ)
CFLT
1.03
Software Industry
- Max
- 2.16
- Q3
- 0.86
- Median
- 0.31
- Q1
- 0.00
- Min
- 0.00
CFLT’s leverage is in the upper quartile of the Software industry, with a Debt-to-Equity Ratio of 1.03. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
IBM
2.33
IT Services Industry
- Max
- 3.11
- Q3
- 1.55
- Median
- 0.55
- Q1
- 0.17
- Min
- 0.00
IBM’s leverage is in the upper quartile of the IT Services industry, with a Debt-to-Equity Ratio of 2.33. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio (TTM)
CFLT
-87.07
Software Industry
- Max
- 89.65
- Q3
- 32.64
- Median
- 1.00
- Q1
- -9.84
- Min
- -71.23
CFLT has a negative Interest Coverage Ratio of -87.07. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
IBM
45.57
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 0.77
- Min
- -28.15
IBM’s Interest Coverage Ratio of 45.57 is positioned comfortably within the norm for the IT Services industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | CFLT | IBM |
|---|---|---|
| Current Ratio (MRQ) | 3.98 | 0.91 |
| Quick Ratio (MRQ) | 3.83 | 0.80 |
| Debt-to-Equity Ratio (MRQ) | 1.03 | 2.33 |
| Interest Coverage Ratio (TTM) | -87.07 | 45.57 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CFLT
0.00%
Software Industry
- Max
- 0.22%
- Q3
- 0.11%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CFLT 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
2.35%
IT Services Industry
- Max
- 2.79%
- Q3
- 1.76%
- Median
- 0.58%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.35%, IBM offers a more attractive income stream than most of its peers in the IT Services industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio (TTM)
CFLT
0.00%
Software Industry
- Max
- 3.29%
- Q3
- 2.41%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CFLT 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
75.57%
IT Services Industry
- Max
- 107.85%
- Q3
- 52.62%
- Median
- 22.53%
- Q1
- 0.00%
- Min
- 0.00%
IBM’s Dividend Payout Ratio of 75.57% is in the upper quartile for the IT Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | CFLT | IBM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.35% |
| Dividend Payout Ratio (TTM) | 0.00% | 75.57% |
Valuation
Price-to-Earnings Ratio (TTM)
CFLT
--
Software Industry
- Max
- 145.74
- Q3
- 94.88
- Median
- 45.35
- Q1
- 26.66
- Min
- 8.80
P/E Ratio data for CFLT is currently unavailable.
IBM
45.14
IT Services Industry
- Max
- 56.41
- Q3
- 33.17
- Median
- 23.17
- Q1
- 16.18
- Min
- 6.62
A P/E Ratio of 45.14 places IBM in the upper quartile for the IT Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
CFLT
6.38
Software Industry
- Max
- 25.67
- Q3
- 13.68
- Median
- 8.28
- Q1
- 4.95
- Min
- 0.90
CFLT’s P/S Ratio of 6.38 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
IBM
4.11
IT Services Industry
- Max
- 5.99
- Q3
- 4.26
- Median
- 1.93
- Q1
- 0.97
- Min
- 0.12
IBM’s P/S Ratio of 4.11 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
CFLT
7.98
Software Industry
- Max
- 30.67
- Q3
- 14.92
- Median
- 8.52
- Q1
- 3.89
- Min
- 0.38
CFLT’s P/B Ratio of 7.98 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
IBM
9.96
IT Services Industry
- Max
- 12.34
- Q3
- 7.54
- Median
- 3.84
- Q1
- 2.52
- Min
- 0.88
IBM’s P/B Ratio of 9.96 is in the upper tier for the IT Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | CFLT | IBM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | -- | 45.14 |
| Price-to-Sales Ratio (TTM) | 6.38 | 4.11 |
| Price-to-Book Ratio (MRQ) | 7.98 | 9.96 |
| Price-to-Free Cash Flow Ratio (TTM) | 137.36 | 22.40 |