FLEX vs. IBM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at FLEX and IBM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | FLEX | IBM |
|---|---|---|
| Company Name | Flex Ltd. | International Business Machines Corporation |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Electronic Equipment, Instruments & Components | IT Services |
| Market Capitalization | 23.53 billion USD | 288.95 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | March 18, 1994 | January 2, 1962 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of FLEX 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 | FLEX | IBM |
|---|---|---|
| 5-Day Price Return | 2.96% | 2.75% |
| 13-Week Price Return | 26.87% | 30.82% |
| 26-Week Price Return | 67.69% | 22.01% |
| 52-Week Price Return | 59.10% | 44.66% |
| Month-to-Date Return | 1.79% | 0.56% |
| Year-to-Date Return | 65.77% | 40.62% |
| 10-Day Avg. Volume | 4.72M | 5.27M |
| 3-Month Avg. Volume | 3.85M | 5.41M |
| 3-Month Volatility | 36.61% | 27.62% |
| Beta | 1.25 | 0.68 |
Profitability
Return on Equity (TTM)
FLEX
16.77%
Electronic Equipment, Instruments & Components Industry
- Max
- 21.57%
- Q3
- 13.27%
- Median
- 8.55%
- Q1
- 4.42%
- Min
- -4.21%
In the upper quartile for the Electronic Equipment, Instruments & Components industry, FLEX’s Return on Equity of 16.77% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
IBM
28.86%
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 28.86% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
FLEX
3.33%
Electronic Equipment, Instruments & Components Industry
- Max
- 17.31%
- Q3
- 10.85%
- Median
- 7.26%
- Q1
- 3.13%
- Min
- -3.00%
FLEX’s Net Profit Margin of 3.33% is aligned with the median group of its peers in the Electronic Equipment, Instruments & Components industry. This indicates its ability to convert revenue into profit is typical for the sector.
IBM
12.09%
IT Services Industry
- Max
- 19.71%
- Q3
- 11.01%
- Median
- 6.66%
- Q1
- 2.96%
- Min
- -6.22%
A Net Profit Margin of 12.09% places IBM in the upper quartile for the IT Services industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
FLEX
4.73%
Electronic Equipment, Instruments & Components Industry
- Max
- 30.04%
- Q3
- 15.08%
- Median
- 9.55%
- Q1
- 4.27%
- Min
- -3.83%
FLEX’s Operating Profit Margin of 4.73% is around the midpoint for the Electronic Equipment, Instruments & Components industry, indicating that its efficiency in managing core business operations is typical for the sector.
IBM
14.51%
IT Services Industry
- Max
- 22.44%
- Q3
- 14.90%
- Median
- 8.82%
- Q1
- 4.91%
- Min
- -9.89%
IBM’s Operating Profit Margin of 14.51% 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 | FLEX | IBM |
|---|---|---|
| Return on Equity (TTM) | 16.77% | 28.86% |
| Return on Assets (TTM) | 4.59% | 5.48% |
| Net Profit Margin (TTM) | 3.33% | 12.09% |
| Operating Profit Margin (TTM) | 4.73% | 14.51% |
| Gross Profit Margin (TTM) | 9.14% | 57.81% |
Financial Strength
Current Ratio (MRQ)
FLEX
1.30
Electronic Equipment, Instruments & Components Industry
- Max
- 4.57
- Q3
- 2.85
- Median
- 2.03
- Q1
- 1.51
- Min
- 0.62
FLEX’s Current Ratio of 1.30 falls into the lower quartile for the Electronic Equipment, Instruments & Components industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
IBM
0.93
IT Services Industry
- Max
- 3.17
- Q3
- 2.00
- Median
- 1.47
- Q1
- 1.05
- Min
- 0.52
IBM’s Current Ratio of 0.93 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)
FLEX
0.74
Electronic Equipment, Instruments & Components Industry
- Max
- 1.14
- Q3
- 0.54
- Median
- 0.30
- Q1
- 0.11
- Min
- 0.00
FLEX’s leverage is in the upper quartile of the Electronic Equipment, Instruments & Components industry, with a Debt-to-Equity Ratio of 0.74. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
IBM
2.26
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 2.26. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio (TTM)
FLEX
7.39
Electronic Equipment, Instruments & Components Industry
- Max
- 79.05
- Q3
- 36.62
- Median
- 12.51
- Q1
- 3.72
- Min
- -18.73
FLEX’s Interest Coverage Ratio of 7.39 is positioned comfortably within the norm for the Electronic Equipment, Instruments & Components 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 | FLEX | IBM |
|---|---|---|
| Current Ratio (MRQ) | 1.30 | 0.93 |
| Quick Ratio (MRQ) | 0.79 | 0.81 |
| Debt-to-Equity Ratio (MRQ) | 0.74 | 2.26 |
| Interest Coverage Ratio (TTM) | 7.39 | 45.57 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
FLEX
0.00%
Electronic Equipment, Instruments & Components Industry
- Max
- 5.36%
- Q3
- 2.53%
- Median
- 1.28%
- Q1
- 0.16%
- Min
- 0.00%
FLEX 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
2.17%
IT Services Industry
- Max
- 2.79%
- Q3
- 1.76%
- Median
- 0.58%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.17%, 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)
FLEX
0.00%
Electronic Equipment, Instruments & Components Industry
- Max
- 218.94%
- Q3
- 90.25%
- Median
- 38.81%
- Q1
- 3.69%
- Min
- 0.00%
FLEX 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
78.74%
IT Services Industry
- Max
- 107.85%
- Q3
- 52.62%
- Median
- 22.53%
- Q1
- 0.00%
- Min
- 0.00%
IBM’s Dividend Payout Ratio of 78.74% 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 | FLEX | IBM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.17% |
| Dividend Payout Ratio (TTM) | 0.00% | 78.74% |
Valuation
Price-to-Earnings Ratio (TTM)
FLEX
26.89
Electronic Equipment, Instruments & Components Industry
- Max
- 74.74
- Q3
- 42.40
- Median
- 26.55
- Q1
- 20.05
- Min
- 10.12
FLEX’s P/E Ratio of 26.89 is within the middle range for the Electronic Equipment, Instruments & Components industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
IBM
36.28
IT Services Industry
- Max
- 56.41
- Q3
- 33.17
- Median
- 23.17
- Q1
- 16.18
- Min
- 6.62
A P/E Ratio of 36.28 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)
FLEX
0.89
Electronic Equipment, Instruments & Components Industry
- Max
- 6.79
- Q3
- 3.58
- Median
- 2.05
- Q1
- 1.29
- Min
- 0.20
In the lower quartile for the Electronic Equipment, Instruments & Components industry, FLEX’s P/S Ratio of 0.89 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
4.39
IT Services Industry
- Max
- 5.99
- Q3
- 4.26
- Median
- 1.93
- Q1
- 0.97
- Min
- 0.12
IBM’s P/S Ratio of 4.39 is in the upper echelon for the IT Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
FLEX
2.53
Electronic Equipment, Instruments & Components Industry
- Max
- 6.92
- Q3
- 3.80
- Median
- 2.23
- Q1
- 1.42
- Min
- 0.44
FLEX’s P/B Ratio of 2.53 is within the conventional range for the Electronic Equipment, Instruments & Components 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
9.42
IT Services Industry
- Max
- 12.34
- Q3
- 7.54
- Median
- 3.84
- Q1
- 2.52
- Min
- 0.88
IBM’s P/B Ratio of 9.42 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 | FLEX | IBM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 26.89 | 36.28 |
| Price-to-Sales Ratio (TTM) | 0.89 | 4.39 |
| Price-to-Book Ratio (MRQ) | 2.53 | 9.42 |
| Price-to-Free Cash Flow Ratio (TTM) | 19.78 | 23.96 |