DIS vs. IBM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at DIS and IBM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | DIS | IBM |
|---|---|---|
| Company Name | The Walt Disney Company | International Business Machines Corporation |
| Country | United States | United States |
| GICS Sector | Communication Services | Information Technology |
| GICS Industry | Entertainment | IT Services |
| Market Capitalization | 204.01 billion USD | 268.90 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | January 2, 1962 | January 2, 1962 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of DIS 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 | DIS | IBM |
|---|---|---|
| 5-Day Price Return | -0.04% | 5.47% |
| 13-Week Price Return | -8.54% | -4.28% |
| 26-Week Price Return | 12.44% | 12.71% |
| 52-Week Price Return | 17.42% | 27.77% |
| Month-to-Date Return | -1.35% | 15.88% |
| Year-to-Date Return | 1.44% | 28.35% |
| 10-Day Avg. Volume | 11.11M | 6.49M |
| 3-Month Avg. Volume | 8.57M | 4.69M |
| 3-Month Volatility | 16.83% | 26.73% |
| Beta | 1.51 | 0.69 |
Profitability
Return on Equity (TTM)
DIS
11.10%
Entertainment Industry
- Max
- 42.50%
- Q3
- 24.06%
- Median
- 13.69%
- Q1
- 5.35%
- Min
- -17.95%
DIS’s Return on Equity of 11.10% is on par with the norm for the Entertainment industry, indicating its profitability relative to shareholder equity is typical for the sector.
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)
DIS
12.22%
Entertainment Industry
- Max
- 45.33%
- Q3
- 24.40%
- Median
- 13.94%
- Q1
- 4.28%
- Min
- -23.67%
DIS’s Net Profit Margin of 12.22% is aligned with the median group of its peers in the Entertainment industry. This indicates its ability to convert revenue into profit is typical for the sector.
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)
DIS
12.69%
Entertainment Industry
- Max
- 41.77%
- Q3
- 28.26%
- Median
- 16.13%
- Q1
- 8.03%
- Min
- -3.93%
DIS’s Operating Profit Margin of 12.69% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.
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 | DIS | IBM |
|---|---|---|
| Return on Equity (TTM) | 11.10% | 21.99% |
| Return on Assets (TTM) | 5.88% | 4.12% |
| Net Profit Margin (TTM) | 12.22% | 9.11% |
| Operating Profit Margin (TTM) | 12.69% | 9.77% |
| Gross Profit Margin (TTM) | 37.61% | 57.57% |
Financial Strength
Current Ratio (MRQ)
DIS
0.72
Entertainment Industry
- Max
- 6.76
- Q3
- 4.02
- Median
- 1.55
- Q1
- 0.86
- Min
- 0.38
DIS’s Current Ratio of 0.72 falls into the lower quartile for the Entertainment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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)
DIS
0.39
Entertainment Industry
- Max
- 1.54
- Q3
- 0.77
- Median
- 0.16
- Q1
- 0.02
- Min
- 0.00
DIS’s Debt-to-Equity Ratio of 0.39 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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)
DIS
7.95
Entertainment Industry
- Max
- 87.17
- Q3
- 35.59
- Median
- 7.06
- Q1
- 1.13
- Min
- -44.74
DIS’s Interest Coverage Ratio of 7.95 is positioned comfortably within the norm for the Entertainment industry, indicating a standard and healthy capacity to cover its interest payments.
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 | DIS | IBM |
|---|---|---|
| Current Ratio (MRQ) | 0.72 | 0.91 |
| Quick Ratio (MRQ) | 0.66 | 0.80 |
| Debt-to-Equity Ratio (MRQ) | 0.39 | 2.33 |
| Interest Coverage Ratio (TTM) | 7.95 | 45.57 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
DIS
0.84%
Entertainment Industry
- Max
- 2.90%
- Q3
- 1.29%
- Median
- 0.59%
- Q1
- 0.00%
- Min
- 0.00%
DIS’s Dividend Yield of 0.84% is consistent with its peers in the Entertainment industry, providing a dividend return that is standard for its sector.
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)
DIS
46.10%
Entertainment Industry
- Max
- 82.30%
- Q3
- 38.45%
- Median
- 29.74%
- Q1
- 0.00%
- Min
- 0.00%
DIS’s Dividend Payout Ratio of 46.10% is in the upper quartile for the Entertainment 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.
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 | DIS | IBM |
|---|---|---|
| Dividend Yield (TTM) | 0.84% | 2.35% |
| Dividend Payout Ratio (TTM) | 46.10% | 75.57% |
Valuation
Price-to-Earnings Ratio (TTM)
DIS
17.79
Entertainment Industry
- Max
- 92.09
- Q3
- 54.51
- Median
- 28.92
- Q1
- 19.75
- Min
- 2.96
In the lower quartile for the Entertainment industry, DIS’s P/E Ratio of 17.79 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
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)
DIS
2.17
Entertainment Industry
- Max
- 12.34
- Q3
- 7.67
- Median
- 5.06
- Q1
- 2.72
- Min
- 0.67
In the lower quartile for the Entertainment industry, DIS’s P/S Ratio of 2.17 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
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)
DIS
2.04
Entertainment Industry
- Max
- 22.84
- Q3
- 10.54
- Median
- 6.60
- Q1
- 2.30
- Min
- 0.65
DIS’s P/B Ratio of 2.04 is in the lower quartile for the Entertainment industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
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 | DIS | IBM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 17.79 | 45.14 |
| Price-to-Sales Ratio (TTM) | 2.17 | 4.11 |
| Price-to-Book Ratio (MRQ) | 2.04 | 9.96 |
| Price-to-Free Cash Flow Ratio (TTM) | 17.80 | 22.40 |