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GEN vs. IBM: Gen Digital vs. IBM Stock Comparison

How do Gen Digital (GEN) 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

Gen Digital (GEN) and IBM (IBM) both fall under the Software & Services industry group, but GEN is classified in Software while IBM is classified in IT Services.

Company profile comparison for Gen Digital (GEN) and IBM (IBM)
Profile ItemGENIBM
NameGen Digital Inc.International Business Machines Corporation
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareIT Services
GICS Sub-IndustrySystems SoftwareIT Consulting & Other Services
Market Capitalization17.67 billion USD231.55 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateJune 23, 1989January 2, 1962
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

GEN
IBM
GSPC
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Gen Digital (GEN) 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 Gen Digital (GEN) and IBM (IBM). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Gen Digital (GEN) and IBM (IBM). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Gen Digital (GEN) and IBM (IBM)
MetricGENIBM
Total Return (1Y)18.20%-16.98%
Total Return (3Y, Annualized)18.57%22.40%
Total Return (5Y, Annualized)5.70%19.64%

Risk Profile

Drawdown History

GEN
IBM
GSPC
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Gen Digital (GEN) 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 Gen Digital (GEN) and IBM (IBM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Gen Digital (GEN) and IBM (IBM)
MetricGENIBM
Volatility (1Y, Annualized)43.30%48.48%
Beta (5Y)1.230.79
Max Drawdown (5Y)-48.41%-37.50%
Avg. Volume (3M)8.39M5.30M

Risk-Adjusted Performance

Risk-Return Positioning

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GEN 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 Gen Digital (GEN) and IBM (IBM)
MetricGENIBM
Sharpe Ratio (1Y)0.32-0.44
Sortino Ratio (1Y)0.50-0.56

Profitability

ROE (TTM)

Both Gen Digital (GEN) at 46.40% 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.

GEN

Software & Services industry group

46.40%

Max
53.85%
GEN
46.40%
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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Gen Digital (GEN) vs. IBM (IBM): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Gen Digital (GEN) at 23.07% and IBM (IBM) at 15.99% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

GEN

Software & Services industry group

23.07%

Max
41.17%
GEN
23.07%
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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Gen Digital (GEN) vs. IBM (IBM): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Gen Digital (GEN) at 37.40% operates in the top operating margin quartile, ahead of IBM (IBM) at 16.97%, which runs around its industry’s norm.

GEN

Software & Services industry group

37.40%

Max
46.89%
GEN
37.40%
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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Gen Digital (GEN) vs. IBM (IBM): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Gen Digital (GEN) and IBM (IBM)
MetricGENIBM
ROE (TTM)46.40%34.77%
ROA (TTM)8.94%5.33%
Net Margin (TTM)23.07%15.99%
Operating Margin (TTM)37.40%16.97%
Gross Margin (TTM)77.41%57.97%

Growth

Revenue Growth

Gen Digital (GEN) at 27.06% sits in the top revenue growth quartile, while IBM (IBM) at 7.62% is closer to the peer norm — faster top-line expansion for GEN.

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Gen Digital (GEN) vs. IBM (IBM): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Gen Digital (GEN) at 52.43% and IBM (IBM) at 73.72% sit in the top peer quartile for EPS growth, so each is compounding per-share earnings faster than typical industry peers.

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Gen Digital (GEN) vs. IBM (IBM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Gen Digital (GEN) and IBM (IBM)
MetricGENIBM
Revenue Growth (YoY)27.06%7.62%
Revenue Growth (3Y CAGR)14.66%3.72%
EPS Growth (YoY)52.43%73.72%
EPS Growth (3Y CAGR)-10.09%83.76%

Financial Strength

Current Ratio (MRQ)

Both Gen Digital (GEN) at 0.37 and IBM (IBM) at 0.86 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

GEN

Software & Services industry group

0.37

Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
GEN
0.37
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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Gen Digital (GEN) vs. IBM (IBM): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both balance sheets lean debt-heavy versus peers, but GEN is more stretched: IBM (IBM) at 1.85 sits in the higher-leverage quartile and Gen Digital (GEN) at 2.96 is above its industry benchmark range.

GEN

Software & Services industry group

2.96

GEN
2.96
Max
2.52
Q3
1.13
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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Gen Digital (GEN) 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 Gen Digital (GEN) and IBM (IBM)
MetricGENIBM
Current Ratio (MRQ)0.370.86
Debt / Equity (MRQ)2.961.85
Net Debt / EBITDA3.023.37

Dividends

Dividend Yield (TTM)

Both Gen Digital (GEN) at 1.63% and IBM (IBM) at 2.73% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

GEN

Software & Services industry group

1.63%

GEN
1.63%
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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Gen Digital (GEN) vs. IBM (IBM): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both Gen Digital (GEN) at 25.38% and IBM (IBM) at 57.51% pay out more of their earnings than any of their industry peers — the thinnest cover in their groups, so dividend headroom deserves attention.

GEN

Software & Services industry group

25.38%

GEN
25.38%
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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Gen Digital (GEN) vs. IBM (IBM): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Gen Digital (GEN) and IBM (IBM)
MetricGENIBM
Dividend Yield (TTM)1.63%2.73%
Dividend Payout Ratio (TTM)25.38%57.51%

Valuation

P/E Ratio (TTM)

Gen Digital (GEN) at 15.12 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 GEN, though growth and earnings durability still matter.

GEN

Software & Services industry group

15.12

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
GEN
15.12
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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Gen Digital (GEN) 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 Gen Digital (GEN) at 3.38 and IBM (IBM) at 3.31 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

GEN

Software & Services industry group

3.38

Max
17.91
Q3
8.78
Median
4.25
GEN
3.38
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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Gen Digital (GEN) 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 Gen Digital (GEN) at 6.45 and IBM (IBM) at 6.52 are valued close to their industries’ norm against book — neither stands out from peers.

GEN

Software & Services industry group

6.45

Max
16.63
Q3
8.50
GEN
6.45
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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Gen Digital (GEN) vs. IBM (IBM): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Gen Digital (GEN) and IBM (IBM)
MetricGENIBM
P/E Ratio (TTM)15.1220.90
P/S Ratio (TTM)3.383.31
P/B Ratio (MRQ)6.456.52
Free Cash Flow Yield (TTM)10.25%5.34%