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FIS vs. IBM: A Head-to-Head Stock Comparison

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Here’s a clear look at FIS and IBM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolFISIBM
Company NameFidelity National Information Services, Inc.International Business Machines Corporation
CountryUnited StatesUnited States
GICS SectorFinancialsInformation Technology
GICS IndustryFinancial ServicesIT Services
Market Capitalization34.85 billion USD268.62 billion USD
ExchangeNYSENYSE
Listing DateJune 20, 2001January 2, 1962
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of FIS 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.

FIS vs. IBM: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolFISIBM
5-Day Price Return1.41%3.06%
13-Week Price Return-18.42%-1.23%
26-Week Price Return-10.67%15.97%
52-Week Price Return-20.07%31.24%
Month-to-Date Return1.17%2.20%
Year-to-Date Return-17.41%31.18%
10-Day Avg. Volume4.43M5.87M
3-Month Avg. Volume3.55M4.73M
3-Month Volatility26.94%26.49%
Beta0.950.67

Profitability

Return on Equity (TTM)

FIS

0.73%

Financial Services Industry

Max
39.28%
Q3
18.88%
Median
9.97%
Q1
4.03%
Min
-10.25%

FIS’s Return on Equity of 0.73% is in the lower quartile for the Financial Services industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

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.

FIS vs. IBM: A comparison of their Return on Equity (TTM) against their respective Financial Services and IT Services industry benchmarks.

Net Profit Margin (TTM)

FIS

1.09%

Financial Services Industry

Max
52.16%
Q3
25.35%
Median
12.68%
Q1
6.11%
Min
-11.69%

Falling into the lower quartile for the Financial Services industry, FIS’s Net Profit Margin of 1.09% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

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.

FIS vs. IBM: A comparison of their Net Profit Margin (TTM) against their respective Financial Services and IT Services industry benchmarks.

Operating Profit Margin (TTM)

FIS

16.82%

Financial Services Industry

Max
75.57%
Q3
37.78%
Median
19.09%
Q1
10.04%
Min
-19.42%

FIS’s Operating Profit Margin of 16.82% is around the midpoint for the Financial Services 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.

FIS vs. IBM: A comparison of their Operating Profit Margin (TTM) against their respective Financial Services and IT Services industry benchmarks.

Profitability at a Glance

SymbolFISIBM
Return on Equity (TTM)0.73%21.99%
Return on Assets (TTM)0.33%4.12%
Net Profit Margin (TTM)1.09%9.11%
Operating Profit Margin (TTM)16.82%9.77%
Gross Profit Margin (TTM)36.68%57.57%

Financial Strength

Current Ratio (MRQ)

FIS

0.59

Financial Services Industry

Max
4.83
Q3
2.70
Median
1.44
Q1
0.86
Min
0.01

For the Financial Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

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.

FIS vs. IBM: A comparison of their Current Ratio (MRQ) against their respective Financial Services and IT Services industry benchmarks.

Debt-to-Equity Ratio (MRQ)

FIS

0.91

Financial Services Industry

Max
5.07
Q3
2.14
Median
0.66
Q1
0.12
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Financial Services industry.

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.

FIS vs. IBM: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Financial Services and IT Services industry benchmarks.

Interest Coverage Ratio (TTM)

FIS

5.52

Financial Services Industry

Max
136.23
Q3
56.08
Median
6.55
Q1
2.01
Min
-33.27

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial Services industry.

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.

FIS vs. IBM: A comparison of their Interest Coverage Ratio (TTM) against their respective Financial Services and IT Services industry benchmarks.

Financial Strength at a Glance

SymbolFISIBM
Current Ratio (MRQ)0.590.91
Quick Ratio (MRQ)0.480.80
Debt-to-Equity Ratio (MRQ)0.912.33
Interest Coverage Ratio (TTM)5.5245.57

Growth

Revenue Growth

FIS vs. IBM: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

FIS vs. IBM: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

FIS

2.37%

Financial Services Industry

Max
8.12%
Q3
3.37%
Median
1.70%
Q1
0.00%
Min
0.00%

FIS’s Dividend Yield of 2.37% is consistent with its peers in the Financial Services industry, providing a dividend return that is standard for its sector.

IBM

2.29%

IT Services Industry

Max
2.79%
Q3
1.76%
Median
0.58%
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 IT Services industry, signaling a strong commitment to shareholder returns.

FIS vs. IBM: A comparison of their Dividend Yield (TTM) against their respective Financial Services and IT Services industry benchmarks.

Dividend Payout Ratio (TTM)

FIS

101.00%

Financial Services Industry

Max
132.10%
Q3
64.32%
Median
18.23%
Q1
0.00%
Min
0.00%

FIS’s Dividend Payout Ratio of 101.00% is in the upper quartile for the Financial 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.

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.

FIS vs. IBM: A comparison of their Dividend Payout Ratio (TTM) against their respective Financial Services and IT Services industry benchmarks.

Dividend at a Glance

SymbolFISIBM
Dividend Yield (TTM)2.37%2.29%
Dividend Payout Ratio (TTM)101.00%75.57%

Valuation

Price-to-Earnings Ratio (TTM)

FIS

309.56

Financial Services Industry

Max
45.81
Q3
30.21
Median
16.29
Q1
10.14
Min
0.70

At 309.56, FIS’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Financial 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.

IBM

46.41

IT Services Industry

Max
56.41
Q3
33.17
Median
23.17
Q1
16.18
Min
6.62

A P/E Ratio of 46.41 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.

FIS vs. IBM: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Financial Services and IT Services industry benchmarks.

Price-to-Sales Ratio (TTM)

FIS

3.36

Financial Services Industry

Max
10.88
Q3
5.34
Median
2.64
Q1
1.24
Min
0.06

The P/S Ratio is often not a primary valuation tool in the Financial Services industry.

IBM

4.23

IT Services Industry

Max
5.99
Q3
4.26
Median
1.93
Q1
0.97
Min
0.12

IBM’s P/S Ratio of 4.23 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.

FIS vs. IBM: A comparison of their Price-to-Sales Ratio (TTM) against their respective Financial Services and IT Services industry benchmarks.

Price-to-Book Ratio (MRQ)

FIS

3.02

Financial Services Industry

Max
7.93
Q3
3.78
Median
1.49
Q1
0.88
Min
0.08

FIS’s P/B Ratio of 3.02 is within the conventional range for the Financial Services 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.

FIS vs. IBM: A comparison of their Price-to-Book Ratio (MRQ) against their respective Financial Services and IT Services industry benchmarks.

Valuation at a Glance

SymbolFISIBM
Price-to-Earnings Ratio (TTM)309.5646.41
Price-to-Sales Ratio (TTM)3.364.23
Price-to-Book Ratio (MRQ)3.029.96
Price-to-Free Cash Flow Ratio (TTM)18.9723.03