GFS vs. IBM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at GFS and IBM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | GFS | IBM |
|---|---|---|
| Company Name | GLOBALFOUNDRIES Inc. | International Business Machines Corporation |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Semiconductors & Semiconductor Equipment | IT Services |
| Market Capitalization | 18.61 billion USD | 281.44 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | October 28, 2021 | January 2, 1962 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of GFS 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 | GFS | IBM |
|---|---|---|
| 5-Day Price Return | -4.54% | -1.11% |
| 13-Week Price Return | -0.06% | 27.52% |
| 26-Week Price Return | -16.75% | 18.21% |
| 52-Week Price Return | -22.07% | 44.93% |
| Month-to-Date Return | -7.16% | -0.56% |
| Year-to-Date Return | -22.98% | 39.06% |
| 10-Day Avg. Volume | 3.73M | 4.95M |
| 3-Month Avg. Volume | 2.96M | 5.47M |
| 3-Month Volatility | 39.95% | 27.54% |
| Beta | 1.52 | 0.68 |
Profitability
Return on Equity (TTM)
GFS
-0.39%
Semiconductors & Semiconductor Equipment Industry
- Max
- 49.05%
- Q3
- 22.19%
- Median
- 7.96%
- Q1
- 0.99%
- Min
- -15.65%
GFS has a negative Return on Equity of -0.39%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
IBM
28.86%
IT Services Industry
- Max
- 37.08%
- Q3
- 19.28%
- Median
- 14.70%
- Q1
- 6.70%
- Min
- -8.16%
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)
GFS
-0.65%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.41%
- Q3
- 24.47%
- Median
- 11.88%
- Q1
- 0.60%
- Min
- -25.46%
GFS has a negative Net Profit Margin of -0.65%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
IBM
12.09%
IT Services Industry
- Max
- 17.01%
- Q3
- 11.02%
- Median
- 6.91%
- Q1
- 3.07%
- Min
- -5.13%
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)
GFS
-2.34%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.09%
- Q3
- 27.76%
- Median
- 12.14%
- Q1
- 3.29%
- Min
- -32.60%
GFS has a negative Operating Profit Margin of -2.34%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
IBM
14.51%
IT Services Industry
- Max
- 23.01%
- Q3
- 15.32%
- Median
- 9.57%
- Q1
- 4.91%
- Min
- -9.58%
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 | GFS | IBM |
|---|---|---|
| Return on Equity (TTM) | -0.39% | 28.86% |
| Return on Assets (TTM) | -0.26% | 5.48% |
| Net Profit Margin (TTM) | -0.65% | 12.09% |
| Operating Profit Margin (TTM) | -2.34% | 14.51% |
| Gross Profit Margin (TTM) | 24.02% | 57.81% |
Financial Strength
Current Ratio (MRQ)
GFS
3.03
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.57
- Q3
- 4.28
- Median
- 2.86
- Q1
- 2.22
- Min
- 1.02
GFS’s Current Ratio of 3.03 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.
IBM
0.93
IT Services Industry
- Max
- 3.02
- Q3
- 1.91
- Median
- 1.36
- Q1
- 1.02
- Min
- 0.49
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)
GFS
0.14
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.18
- Q3
- 0.48
- Median
- 0.24
- Q1
- 0.01
- Min
- 0.00
GFS’s Debt-to-Equity Ratio of 0.14 is typical for the Semiconductors & Semiconductor Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
IBM
2.26
IT Services Industry
- Max
- 2.55
- Q3
- 1.30
- Median
- 0.55
- Q1
- 0.14
- 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)
GFS
29.37
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.21
- Median
- 22.37
- Q1
- 6.43
- Min
- -7.80
GFS’s Interest Coverage Ratio of 29.37 is positioned comfortably within the norm for the Semiconductors & Semiconductor Equipment 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
- 1.68
- 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 | GFS | IBM |
|---|---|---|
| Current Ratio (MRQ) | 3.03 | 0.93 |
| Quick Ratio (MRQ) | 2.24 | 0.81 |
| Debt-to-Equity Ratio (MRQ) | 0.14 | 2.26 |
| Interest Coverage Ratio (TTM) | 29.37 | 45.57 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
GFS
0.00%
Semiconductors & Semiconductor Equipment Industry
- Max
- 3.58%
- Q3
- 1.59%
- Median
- 0.61%
- Q1
- 0.00%
- Min
- 0.00%
GFS 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
2.20%
IT Services Industry
- Max
- 4.66%
- Q3
- 2.02%
- Median
- 0.66%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.20%, 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)
GFS
0.00%
Semiconductors & Semiconductor Equipment Industry
- Max
- 211.90%
- Q3
- 88.01%
- Median
- 25.84%
- Q1
- 0.00%
- Min
- 0.00%
GFS 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
- 93.78%
- Q3
- 63.22%
- Median
- 24.64%
- 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 | GFS | IBM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.20% |
| Dividend Payout Ratio (TTM) | 0.00% | 78.74% |
Valuation
Price-to-Earnings Ratio (TTM)
GFS
--
Semiconductors & Semiconductor Equipment Industry
- Max
- 95.58
- Q3
- 58.67
- Median
- 34.77
- Q1
- 25.45
- Min
- 12.63
P/E Ratio data for GFS is currently unavailable.
IBM
35.83
IT Services Industry
- Max
- 45.03
- Q3
- 30.25
- Median
- 21.01
- Q1
- 16.50
- Min
- 0.00
A P/E Ratio of 35.83 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)
GFS
2.68
Semiconductors & Semiconductor Equipment Industry
- Max
- 18.34
- Q3
- 10.38
- Median
- 5.38
- Q1
- 2.49
- Min
- 0.32
GFS’s P/S Ratio of 2.68 aligns with the market consensus for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
IBM
4.33
IT Services Industry
- Max
- 5.24
- Q3
- 4.01
- Median
- 2.18
- Q1
- 1.08
- Min
- 0.00
IBM’s P/S Ratio of 4.33 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)
GFS
1.70
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.22
- Q3
- 8.33
- Median
- 4.39
- Q1
- 1.79
- Min
- 0.30
GFS’s P/B Ratio of 1.70 is in the lower quartile for the Semiconductors & Semiconductor Equipment 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
9.42
IT Services Industry
- Max
- 9.42
- Q3
- 5.79
- Median
- 3.70
- Q1
- 2.30
- Min
- 0.79
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 | GFS | IBM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | -- | 35.83 |
| Price-to-Sales Ratio (TTM) | 2.68 | 4.33 |
| Price-to-Book Ratio (MRQ) | 1.70 | 9.42 |
| Price-to-Free Cash Flow Ratio (TTM) | 15.64 | 23.67 |