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

Updated on October 3, 2025

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

Company Profile

Symbol	FTNT	IBM
Company Name	Fortinet, Inc.	International Business Machines Corporation
Country	United States	United States
GICS Sector	Information Technology	Information Technology
GICS Industry	Software	IT Services
Market Capitalization	65.27 billion USD	268.90 billion USD
Exchange	NasdaqGS	NYSE
Listing Date	November 18, 2009	January 2, 1962
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of FTNT 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.

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

Historical Performance at a Glance

Symbol	FTNT	IBM
5-Day Price Return	0.57%	5.47%
13-Week Price Return	-20.47%	-4.28%
26-Week Price Return	-16.76%	12.71%
52-Week Price Return	8.56%	27.77%
Month-to-Date Return	6.74%	15.88%
Year-to-Date Return	-11.01%	28.35%
10-Day Avg. Volume	6.77M	6.49M
3-Month Avg. Volume	6.42M	4.69M
3-Month Volatility	54.60%	26.73%
Beta	1.08	0.69

Profitability

Return on Equity (TTM)

FTNT

120.75%

Software Industry

Max: 66.28%
Q3: 21.28%
Median: 9.33%
Q1: -8.77%
Min: -48.16%

FTNT’s Return on Equity of 120.75% is exceptionally high, placing it well beyond the typical range for the Software industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

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.

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

Net Profit Margin (TTM)

FTNT

30.60%

Software Industry

Max: 51.92%
Q3: 19.23%
Median: 6.98%
Q1: -7.14%
Min: -41.00%

A Net Profit Margin of 30.60% places FTNT in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.

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.

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

Operating Profit Margin (TTM)

FTNT

32.55%

Software Industry

Max: 60.40%
Q3: 21.25%
Median: 9.90%
Q1: -4.97%
Min: -43.50%

An Operating Profit Margin of 32.55% places FTNT in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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.

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

Profitability at a Glance

Symbol	FTNT	IBM
Return on Equity (TTM)	120.75%	21.99%
Return on Assets (TTM)	19.56%	4.12%
Net Profit Margin (TTM)	30.60%	9.11%
Operating Profit Margin (TTM)	32.55%	9.77%
Gross Profit Margin (TTM)	81.42%	57.57%

Financial Strength

Current Ratio (MRQ)

FTNT

1.33

Software Industry

Max: 4.29
Q3: 2.37
Median: 1.40
Q1: 1.03
Min: 0.25

FTNT’s Current Ratio of 1.33 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector 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.

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

Debt-to-Equity Ratio (MRQ)

FTNT

0.48

Software Industry

Max: 2.16
Q3: 0.86
Median: 0.31
Q1: 0.00
Min: 0.00

FTNT’s Debt-to-Equity Ratio of 0.48 is typical for the Software 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.

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

Interest Coverage Ratio (TTM)

FTNT

184.75

Software Industry

Max: 89.65
Q3: 32.64
Median: 1.00
Q1: -9.84
Min: -71.23

With an Interest Coverage Ratio of 184.75, FTNT demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software industry. This stems from either robust earnings or a conservative debt load.

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.

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

Financial Strength at a Glance

Symbol	FTNT	IBM
Current Ratio (MRQ)	1.33	0.91
Quick Ratio (MRQ)	1.21	0.80
Debt-to-Equity Ratio (MRQ)	0.48	2.33
Interest Coverage Ratio (TTM)	184.75	45.57

Growth

Revenue Growth

FTNT 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

FTNT 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)

FTNT

0.00%

Software Industry

Max: 0.22%
Q3: 0.11%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

FTNT 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.

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

Dividend Payout Ratio (TTM)

FTNT

0.00%

Software Industry

Max: 3.29%
Q3: 2.41%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

FTNT 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.

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

Dividend at a Glance

Symbol	FTNT	IBM
Dividend Yield (TTM)	0.00%	2.35%
Dividend Payout Ratio (TTM)	0.00%	75.57%

Valuation

Price-to-Earnings Ratio (TTM)

FTNT

33.44

Software Industry

Max: 145.74
Q3: 94.88
Median: 45.35
Q1: 26.66
Min: 8.80

FTNT’s P/E Ratio of 33.44 is within the middle range for the Software 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

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.

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

Price-to-Sales Ratio (TTM)

FTNT

10.23

Software Industry

Max: 25.67
Q3: 13.68
Median: 8.28
Q1: 4.95
Min: 0.90

FTNT’s P/S Ratio of 10.23 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.

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

Price-to-Book Ratio (MRQ)

FTNT

39.27

Software Industry

Max: 30.67
Q3: 14.92
Median: 8.52
Q1: 3.89
Min: 0.38

At 39.27, FTNT’s P/B Ratio is at an extreme premium to the Software industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

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.

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

Valuation at a Glance

Symbol	FTNT	IBM
Price-to-Earnings Ratio (TTM)	33.44	45.14
Price-to-Sales Ratio (TTM)	10.23	4.11
Price-to-Book Ratio (MRQ)	39.27	9.96
Price-to-Free Cash Flow Ratio (TTM)	31.91	22.40