GOOGL vs. IBM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at GOOGL and IBM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | GOOGL | IBM |
|---|---|---|
| Company Name | Alphabet Inc. | International Business Machines Corporation |
| Country | United States | United States |
| GICS Sector | Communication Services | Information Technology |
| GICS Industry | Interactive Media & Services | IT Services |
| Market Capitalization | 3,489.62 billion USD | 281.44 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | August 19, 2004 | January 2, 1962 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of GOOGL 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 | GOOGL | IBM |
|---|---|---|
| 5-Day Price Return | -2.16% | -1.11% |
| 13-Week Price Return | 40.06% | 27.52% |
| 26-Week Price Return | 72.35% | 18.21% |
| 52-Week Price Return | 62.33% | 44.93% |
| Month-to-Date Return | 1.36% | -0.56% |
| Year-to-Date Return | 50.57% | 39.06% |
| 10-Day Avg. Volume | 32.08M | 4.95M |
| 3-Month Avg. Volume | 34.66M | 5.47M |
| 3-Month Volatility | 31.14% | 27.54% |
| Beta | 1.10 | 0.68 |
Profitability
Return on Equity (TTM)
GOOGL
35.00%
Interactive Media & Services Industry
- Max
- 51.86%
- Q3
- 34.65%
- Median
- 13.84%
- Q1
- 6.07%
- Min
- -21.93%
In the upper quartile for the Interactive Media & Services industry, GOOGL’s Return on Equity of 35.00% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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)
GOOGL
32.23%
Interactive Media & Services Industry
- Max
- 49.74%
- Q3
- 30.89%
- Median
- 20.53%
- Q1
- 7.75%
- Min
- -11.99%
A Net Profit Margin of 32.23% places GOOGL in the upper quartile for the Interactive Media & Services industry, signifying strong profitability and more effective cost management than most of its peers.
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)
GOOGL
32.19%
Interactive Media & Services Industry
- Max
- 65.96%
- Q3
- 35.84%
- Median
- 19.27%
- Q1
- 12.16%
- Min
- -18.13%
GOOGL’s Operating Profit Margin of 32.19% is around the midpoint for the Interactive Media & Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
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 | GOOGL | IBM |
|---|---|---|
| Return on Equity (TTM) | 35.00% | 28.86% |
| Return on Assets (TTM) | 25.30% | 5.48% |
| Net Profit Margin (TTM) | 32.23% | 12.09% |
| Operating Profit Margin (TTM) | 32.19% | 14.51% |
| Gross Profit Margin (TTM) | 59.17% | 57.81% |
Financial Strength
Current Ratio (MRQ)
GOOGL
1.75
Interactive Media & Services Industry
- Max
- 3.92
- Q3
- 2.52
- Median
- 1.78
- Q1
- 1.25
- Min
- 0.25
GOOGL’s Current Ratio of 1.75 aligns with the median group of the Interactive Media & Services 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)
GOOGL
0.06
Interactive Media & Services Industry
- Max
- 0.87
- Q3
- 0.52
- Median
- 0.30
- Q1
- 0.04
- Min
- 0.00
GOOGL’s Debt-to-Equity Ratio of 0.06 is typical for the Interactive Media & Services 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)
GOOGL
16.20
Interactive Media & Services Industry
- Max
- 16.48
- Q3
- 16.48
- Median
- 6.73
- Q1
- -0.50
- Min
- -3.62
GOOGL’s Interest Coverage Ratio of 16.20 is positioned comfortably within the norm for the Interactive Media & Services 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 | GOOGL | IBM |
|---|---|---|
| Current Ratio (MRQ) | 1.75 | 0.93 |
| Quick Ratio (MRQ) | 1.75 | 0.81 |
| Debt-to-Equity Ratio (MRQ) | 0.06 | 2.26 |
| Interest Coverage Ratio (TTM) | 16.20 | 45.57 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
GOOGL
0.29%
Interactive Media & Services Industry
- Max
- 3.24%
- Q3
- 1.57%
- Median
- 0.29%
- Q1
- 0.00%
- Min
- 0.00%
GOOGL’s Dividend Yield of 0.29% is consistent with its peers in the Interactive Media & Services industry, providing a dividend return that is standard for its sector.
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)
GOOGL
8.01%
Interactive Media & Services Industry
- Max
- 101.53%
- Q3
- 41.32%
- Median
- 8.01%
- Q1
- 0.00%
- Min
- 0.00%
GOOGL’s Dividend Payout Ratio of 8.01% is within the typical range for the Interactive Media & Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
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 | GOOGL | IBM |
|---|---|---|
| Dividend Yield (TTM) | 0.29% | 2.20% |
| Dividend Payout Ratio (TTM) | 8.01% | 78.74% |
Valuation
Price-to-Earnings Ratio (TTM)
GOOGL
27.90
Interactive Media & Services Industry
- Max
- 45.88
- Q3
- 35.11
- Median
- 24.08
- Q1
- 16.48
- Min
- 1.73
GOOGL’s P/E Ratio of 27.90 is within the middle range for the Interactive Media & Services 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
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)
GOOGL
8.99
Interactive Media & Services Industry
- Max
- 18.66
- Q3
- 9.65
- Median
- 5.89
- Q1
- 2.17
- Min
- 0.00
GOOGL’s P/S Ratio of 8.99 aligns with the market consensus for the Interactive Media & Services 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)
GOOGL
7.61
Interactive Media & Services Industry
- Max
- 16.71
- Q3
- 8.07
- Median
- 4.11
- Q1
- 1.91
- Min
- 0.16
GOOGL’s P/B Ratio of 7.61 is within the conventional range for the Interactive Media & 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
9.42
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 | GOOGL | IBM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 27.90 | 35.83 |
| Price-to-Sales Ratio (TTM) | 8.99 | 4.33 |
| Price-to-Book Ratio (MRQ) | 7.61 | 9.42 |
| Price-to-Free Cash Flow Ratio (TTM) | 47.13 | 23.67 |