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CHKP vs. IBM: Check Point Software vs. IBM Stock Comparison

How do Check Point Software (CHKP) 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

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

Company profile comparison for Check Point Software (CHKP) and IBM (IBM)
Profile ItemCHKPIBM
NameCheck Point Software Technologies Ltd.International Business Machines Corporation
Country/RegionIsraelUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareIT Services
GICS Sub-IndustrySystems SoftwareIT Consulting & Other Services
Market Capitalization14.72 billion USD231.55 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateJune 28, 1996January 2, 1962
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

CHKP
IBM
GSPC
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Check Point Software (CHKP) 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 Check Point Software (CHKP) and IBM (IBM). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Check Point Software (CHKP) and IBM (IBM). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Check Point Software (CHKP) and IBM (IBM)
MetricCHKPIBM
Total Return (1Y)-27.87%-16.98%
Total Return (3Y, Annualized)1.46%22.40%
Total Return (5Y, Annualized)4.07%19.64%

Risk Profile

Drawdown History

CHKP
IBM
GSPC
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Check Point Software (CHKP) 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 Check Point Software (CHKP) and IBM (IBM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Check Point Software (CHKP) and IBM (IBM)
MetricCHKPIBM
Volatility (1Y, Annualized)40.93%48.48%
Beta (5Y)0.430.79
Max Drawdown (5Y)-51.83%-37.50%
Avg. Volume (3M)1.19M5.30M

Risk-Adjusted Performance

Risk-Return Positioning

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CHKP 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 Check Point Software (CHKP) and IBM (IBM)
MetricCHKPIBM
Sharpe Ratio (1Y)-0.79-0.44
Sortino Ratio (1Y)-0.97-0.56

Profitability

ROE (TTM)

Both Check Point Software (CHKP) at 30.61% and IBM (IBM) at 34.77% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

CHKP

Software & Services industry group

30.61%

Max
53.85%
CHKP
30.61%
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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Check Point Software (CHKP) vs. IBM (IBM): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Check Point Software (CHKP) at 31.74% and IBM (IBM) at 15.99% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

CHKP

Software & Services industry group

31.74%

Max
41.17%
CHKP
31.74%
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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Check Point Software (CHKP) vs. IBM (IBM): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Check Point Software (CHKP) at 26.46% operates in the top operating margin quartile, ahead of IBM (IBM) at 16.97%, which runs around its industry’s norm.

CHKP

Software & Services industry group

26.46%

Max
46.89%
CHKP
26.46%
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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Check Point Software (CHKP) vs. IBM (IBM): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Check Point Software (CHKP) and IBM (IBM)
MetricCHKPIBM
ROE (TTM)30.61%34.77%
ROA (TTM)7.43%5.33%
Net Margin (TTM)31.74%15.99%
Operating Margin (TTM)26.46%16.97%
Gross Margin (TTM)87.19%57.97%

Growth

Revenue Growth

IBM (IBM) at 7.62% is around its peer norm for revenue growth, while Check Point Software (CHKP) at 6.25% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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Check Point Software (CHKP) vs. IBM (IBM): A comparison of their Revenue Growth across different time periods.

EPS Growth

IBM (IBM) at 73.72% sits in the top EPS growth quartile, while Check Point Software (CHKP) at 28.95% is closer to the peer norm — faster per-share earnings growth for IBM.

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Check Point Software (CHKP) vs. IBM (IBM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Check Point Software (CHKP) and IBM (IBM)
MetricCHKPIBM
Revenue Growth (YoY)6.25%7.62%
Revenue Growth (3Y CAGR)5.37%3.72%
EPS Growth (YoY)28.95%73.72%
EPS Growth (3Y CAGR)15.09%83.76%

Financial Strength

Current Ratio (MRQ)

Check Point Software (CHKP) at 1.60 keeps current ratio within its industry’s typical mid-range, while IBM (IBM) at 0.86 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for IBM.

CHKP

Software & Services industry group

1.60

Max
5.11
Q3
2.77
Median
1.67
CHKP
1.60
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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Check Point Software (CHKP) vs. IBM (IBM): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Check Point Software (CHKP) at 0.75 carries an industry-typical debt-to-equity mix, while IBM (IBM) at 1.85 uses more debt funding than most peers.

CHKP

Software & Services industry group

0.75

Max
2.52
Q3
1.13
CHKP
0.75
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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Check Point Software (CHKP) 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 Check Point Software (CHKP) and IBM (IBM)
MetricCHKPIBM
Current Ratio (MRQ)1.600.86
Debt / Equity (MRQ)0.751.85
Net Debt / EBITDA-0.223.37

Dividends

Dividend Yield (TTM)

Check Point Software (CHKP) 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.

CHKP

Software & Services industry group

0.00%

CHKP
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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Check Point Software (CHKP) vs. IBM (IBM): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Check Point Software (CHKP) 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.

CHKP

Software & Services industry group

0.00%

CHKP
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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Check Point Software (CHKP) vs. IBM (IBM): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Check Point Software (CHKP) and IBM (IBM)
MetricCHKPIBM
Dividend Yield (TTM)0.00%2.73%
Dividend Payout Ratio (TTM)0.00%57.51%

Valuation

P/E Ratio (TTM)

Check Point Software (CHKP) at 17.35 sits in the cheaper P/E ratio quartile, while IBM (IBM) at 20.90 is closer to its industry’s usual earnings multiple — a discount for CHKP, though growth and earnings durability still matter.

CHKP

Software & Services industry group

17.35

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
CHKP
17.35
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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Check Point Software (CHKP) vs. IBM (IBM): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Check Point Software (CHKP) at 5.34 and IBM (IBM) at 3.31 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

CHKP

Software & Services industry group

5.34

Max
17.91
Q3
8.78
CHKP
5.34
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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Check Point Software (CHKP) vs. IBM (IBM): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Check Point Software (CHKP) at 5.54 and IBM (IBM) at 6.52 are valued close to their industries’ norm against book — neither stands out from peers.

CHKP

Software & Services industry group

5.54

Max
16.63
Q3
8.50
CHKP
5.54
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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Check Point Software (CHKP) vs. IBM (IBM): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Check Point Software (CHKP) and IBM (IBM)
MetricCHKPIBM
P/E Ratio (TTM)17.3520.90
P/S Ratio (TTM)5.343.31
P/B Ratio (MRQ)5.546.52
Free Cash Flow Yield (TTM)4.87%5.34%