GRMN vs. IBM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at GRMN and IBM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | GRMN | IBM |
|---|---|---|
| Company Name | Garmin Ltd. | International Business Machines Corporation |
| Country | Switzerland | United States |
| GICS Sector | Consumer Discretionary | Information Technology |
| GICS Industry | Household Durables | IT Services |
| Market Capitalization | 44.30 billion USD | 225.94 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | December 8, 2000 | January 2, 1962 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of GRMN 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 | GRMN | IBM |
|---|---|---|
| 5-Day Price Return | -2.09% | 2.29% |
| 13-Week Price Return | 12.32% | -9.63% |
| 26-Week Price Return | 9.48% | -6.42% |
| 52-Week Price Return | 30.83% | 24.56% |
| Month-to-Date Return | 5.21% | -4.19% |
| Year-to-Date Return | 11.58% | 10.34% |
| 10-Day Avg. Volume | 0.68M | 5.60M |
| 3-Month Avg. Volume | 0.86M | 4.60M |
| 3-Month Volatility | 24.53% | 24.47% |
| Beta | 1.01 | 0.69 |
Profitability
Return on Equity (TTM)
GRMN
19.82%
Household Durables Industry
- Max
- 26.99%
- Q3
- 17.28%
- Median
- 12.66%
- Q1
- 7.34%
- Min
- 0.07%
In the upper quartile for the Household Durables industry, GRMN’s Return on Equity of 19.82% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
IBM
21.99%
IT Services Industry
- Max
- 29.51%
- Q3
- 16.98%
- Median
- 13.47%
- Q1
- 7.93%
- Min
- -3.97%
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.
Net Profit Margin (TTM)
GRMN
23.21%
Household Durables Industry
- Max
- 15.50%
- Q3
- 8.99%
- Median
- 6.57%
- Q1
- 4.33%
- Min
- -0.49%
GRMN’s Net Profit Margin of 23.21% is exceptionally high, placing it well beyond the typical range for the Household Durables industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
IBM
9.11%
IT Services Industry
- Max
- 19.82%
- Q3
- 11.49%
- Median
- 6.67%
- Q1
- 3.61%
- Min
- -4.62%
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.
Operating Profit Margin (TTM)
GRMN
26.02%
Household Durables Industry
- Max
- 20.22%
- Q3
- 12.29%
- Median
- 9.54%
- Q1
- 6.30%
- Min
- -1.92%
GRMN’s Operating Profit Margin of 26.02% is exceptionally high, placing it well above the typical range for the Household Durables industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
IBM
9.77%
IT Services Industry
- Max
- 21.69%
- Q3
- 14.50%
- Median
- 10.06%
- Q1
- 6.98%
- Min
- 0.06%
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.
Profitability at a Glance
| Symbol | GRMN | IBM |
|---|---|---|
| Return on Equity (TTM) | 19.82% | 21.99% |
| Return on Assets (TTM) | 16.05% | 4.12% |
| Net Profit Margin (TTM) | 23.21% | 9.11% |
| Operating Profit Margin (TTM) | 26.02% | 9.77% |
| Gross Profit Margin (TTM) | 58.94% | 57.57% |
Financial Strength
Current Ratio (MRQ)
GRMN
3.01
Household Durables Industry
- Max
- 9.23
- Q3
- 4.50
- Median
- 2.35
- Q1
- 1.29
- Min
- 0.70
GRMN’s Current Ratio of 3.01 aligns with the median group of the Household Durables industry, indicating that its short-term liquidity is in line with its sector peers.
IBM
0.91
IT Services Industry
- Max
- 2.42
- Q3
- 1.81
- Median
- 1.47
- Q1
- 1.09
- Min
- 0.44
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.
Debt-to-Equity Ratio (MRQ)
GRMN
0.00
Household Durables Industry
- Max
- 1.84
- Q3
- 0.90
- Median
- 0.34
- Q1
- 0.19
- Min
- 0.00
Falling into the lower quartile for the Household Durables industry, GRMN’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
IBM
2.33
IT Services Industry
- Max
- 2.33
- Q3
- 1.17
- Median
- 0.54
- Q1
- 0.15
- 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.
Interest Coverage Ratio (TTM)
GRMN
73.26
Household Durables Industry
- Max
- 140.40
- Q3
- 77.14
- Median
- 24.53
- Q1
- 5.69
- Min
- -17.01
GRMN’s Interest Coverage Ratio of 73.26 is positioned comfortably within the norm for the Household Durables industry, indicating a standard and healthy capacity to cover its interest payments.
IBM
45.57
IT Services Industry
- Max
- 144.50
- Q3
- 84.49
- Median
- 13.76
- Q1
- 2.59
- Min
- -28.13
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 | GRMN | IBM |
|---|---|---|
| Current Ratio (MRQ) | 3.01 | 0.91 |
| Quick Ratio (MRQ) | 1.88 | 0.80 |
| Debt-to-Equity Ratio (MRQ) | 0.00 | 2.33 |
| Interest Coverage Ratio (TTM) | 73.26 | 45.57 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
GRMN
1.36%
Household Durables Industry
- Max
- 8.95%
- Q3
- 4.19%
- Median
- 1.88%
- Q1
- 0.03%
- Min
- 0.00%
GRMN’s Dividend Yield of 1.36% is consistent with its peers in the Household Durables industry, providing a dividend return that is standard for its sector.
IBM
2.76%
IT Services Industry
- Max
- 2.80%
- Q3
- 1.74%
- Median
- 0.62%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.76%, 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)
GRMN
38.63%
Household Durables Industry
- Max
- 125.12%
- Q3
- 62.43%
- Median
- 39.18%
- Q1
- 5.55%
- Min
- 0.00%
GRMN’s Dividend Payout Ratio of 38.63% is within the typical range for the Household Durables industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
IBM
75.57%
IT Services Industry
- Max
- 147.75%
- Q3
- 63.58%
- Median
- 24.63%
- 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.
Dividend at a Glance
| Symbol | GRMN | IBM |
|---|---|---|
| Dividend Yield (TTM) | 1.36% | 2.76% |
| Dividend Payout Ratio (TTM) | 38.63% | 75.57% |
Valuation
Price-to-Earnings Ratio (TTM)
GRMN
28.32
Household Durables Industry
- Max
- 29.75
- Q3
- 18.88
- Median
- 13.25
- Q1
- 9.26
- Min
- 6.32
A P/E Ratio of 28.32 places GRMN in the upper quartile for the Household Durables industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
IBM
38.56
IT Services Industry
- Max
- 41.55
- Q3
- 31.54
- Median
- 23.25
- Q1
- 18.12
- Min
- 6.57
A P/E Ratio of 38.56 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)
GRMN
6.57
Household Durables Industry
- Max
- 2.12
- Q3
- 1.21
- Median
- 0.83
- Q1
- 0.51
- Min
- 0.18
With a P/S Ratio of 6.57, GRMN trades at a valuation that eclipses even the highest in the Household Durables industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
IBM
3.51
IT Services Industry
- Max
- 6.61
- Q3
- 4.37
- Median
- 2.02
- Q1
- 1.20
- Min
- 0.19
IBM’s P/S Ratio of 3.51 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.
Price-to-Book Ratio (MRQ)
GRMN
4.95
Household Durables Industry
- Max
- 4.21
- Q3
- 2.29
- Median
- 1.34
- Q1
- 0.98
- Min
- 0.59
At 4.95, GRMN’s P/B Ratio is at an extreme premium to the Household Durables 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
- 11.19
- Q3
- 6.38
- Median
- 3.47
- Q1
- 2.31
- Min
- 0.96
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.
Valuation at a Glance
| Symbol | GRMN | IBM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 28.32 | 38.56 |
| Price-to-Sales Ratio (TTM) | 6.57 | 3.51 |
| Price-to-Book Ratio (MRQ) | 4.95 | 9.96 |
| Price-to-Free Cash Flow Ratio (TTM) | 39.42 | 19.13 |