IBM vs. IT: IBM vs. Gartner Stock Comparison
This page compares IBM (IBM) with Gartner (IT) using performance and risk, profitability, financial strength, growth, dividends, and valuation metrics.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | IBM | IT |
|---|---|---|
| 1-Year Return | -0.65% | -64.17% |
Risk
Drawdown
Risk at a Glance
| Metric | IBM | IT |
|---|---|---|
| 1-Year Volatility | 39.53% | 52.53% |
| Beta | 0.69 | 0.95 |
| 3-Month Avg. Volume | 7.87M | 1.57M |
Company Profile
IBM (IBM) and Gartner (IT) are both classified in the IT Consulting & Other Services sub-industry within the broader IT Services industry, placing them in the closest GICS peer bucket.
IBM (IBM) is a mega-cap company at 255.87 billion USD, while Gartner (IT) is mid-cap at 9.92 billion USD — a noticeably different scale category that can shape how their valuation multiples are read.
| Profile Item | IBM | IT |
|---|---|---|
| Name | International Business Machines Corporation | Gartner Inc. |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | IT Services | IT Services |
| GICS Sub-Industry | IT Consulting & Other Services | IT Consulting & Other Services |
| Market Capitalization | 255.87 billion USD | 9.92 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | January 2, 1962 | October 5, 1993 |
| Security Type | Common Stock | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
Gartner (IT) at 14.64 sits in the cheaper P/E ratio quartile, while IBM (IBM) at 24.09 is closer to its industry’s usual earnings multiple — a discount for IT, though growth and earnings durability still matter.
IBM
Software & Services industry group
24.09
- Max
- 106.12
- Q3
- 56.70
- Median
- 30.10
- IBM
- 24.09
- Q1
- 15.65
- Min
- 0.39
IT
Software & Services industry group
14.64
- Max
- 106.12
- Q3
- 56.70
- Median
- 30.10
- Q1
- 15.65
- IT
- 14.64
- Min
- 0.39
Price-to-Sales Ratio (TTM)
Gartner (IT) at 1.53 sits in the cheaper P/S ratio quartile while IBM (IBM) at 3.71 prices around its industry’s middle — IT costs less per dollar of sales, though read it alongside growth and margins.
IBM
Software & Services industry group
3.71
- Max
- 18.75
- Q3
- 8.80
- Median
- 3.97
- IBM
- 3.71
- Q1
- 2.05
- Min
- 0.02
IT
Software & Services industry group
1.53
- Max
- 18.75
- Q3
- 8.80
- Median
- 3.97
- Q1
- 2.05
- IT
- 1.53
- Min
- 0.02
Price-to-Book Ratio (MRQ)
IBM (IBM) at 7.76 sits near its industry’s typical P/B ratio, while Gartner (IT) at 158.64 prices above its benchmark range — IT looks rich relative to book.
IBM
Software & Services industry group
7.76
- Max
- 16.52
- Q3
- 8.04
- IBM
- 7.76
- Median
- 3.96
- Q1
- 1.96
- Min
- -6.70
IT
Software & Services industry group
158.64
- IT
- 158.64
- Max
- 16.52
- Q3
- 8.04
- Median
- 3.96
- Q1
- 1.96
- Min
- -6.70
Valuation at a Glance
| Metric | IBM | IT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 24.09 | 14.64 |
| Price-to-Sales Ratio (TTM) | 3.71 | 1.53 |
| Price-to-Book Ratio (MRQ) | 7.76 | 158.64 |
| Free Cash Flow Yield | 5.11% | 10.73% |
Profitability
Return on Equity (TTM)
Both companies show strong equity returns, but Gartner (IT) at 94.88% is the standout with ROE above its industry range; IBM (IBM) at 35.77% also sits in the top quartile.
IBM
Software & Services industry group
35.77%
- Max
- 53.38%
- IBM
- 35.77%
- Q3
- 16.49%
- Median
- 5.29%
- Q1
- -13.69%
- Min
- -58.43%
IT
Software & Services industry group
94.88%
- IT
- 94.88%
- Max
- 53.38%
- Q3
- 16.49%
- Median
- 5.29%
- Q1
- -13.69%
- Min
- -58.43%
Net Profit Margin (TTM)
IBM (IBM) at 15.61% retains a top-quartile share of revenue as profit, ahead of Gartner (IT) at 11.44%, which keeps about the industry-typical share.
IBM
Software & Services industry group
15.61%
- Max
- 44.20%
- IBM
- 15.61%
- Q3
- 14.93%
- Median
- 3.32%
- Q1
- -6.49%
- Min
- -34.99%
IT
Software & Services industry group
11.44%
- Max
- 44.20%
- Q3
- 14.93%
- IT
- 11.44%
- Median
- 3.32%
- Q1
- -6.49%
- Min
- -34.99%
Operating Profit Margin (TTM)
Gartner (IT) at 20.50% operates in the top operating margin quartile, ahead of IBM (IBM) at 13.81%, which runs around its industry’s norm.
IBM
Software & Services industry group
13.81%
- Max
- 60.45%
- Q3
- 16.49%
- IBM
- 13.81%
- Median
- 4.46%
- Q1
- -12.92%
- Min
- -54.21%
IT
Software & Services industry group
20.50%
- Max
- 60.45%
- IT
- 20.50%
- Q3
- 16.49%
- Median
- 4.46%
- Q1
- -12.92%
- Min
- -54.21%
Profitability at a Glance
| Metric | IBM | IT |
|---|---|---|
| Return on Equity (TTM) | 35.77% | 94.88% |
| Return on Assets (TTM) | 5.37% | 9.38% |
| Net Profit Margin (TTM) | 15.61% | 11.44% |
| Operating Profit Margin (TTM) | 13.81% | 20.50% |
| Gross Profit Margin (TTM) | 58.36% | 68.99% |
Growth
Revenue Growth
Revenue Growth at a Glance
| Metric | IBM | IT |
|---|---|---|
| 1-Year Revenue Growth | 7.62% | 3.67% |
| 3-Year Revenue CAGR | 3.72% | 5.87% |
EPS Growth
EPS Growth at a Glance
| Metric | IBM | IT |
|---|---|---|
| 1-Year EPS Growth | 73.72% | -39.69% |
| 3-Year EPS CAGR | 83.76% | -1.05% |
Financial Strength
Current Ratio (MRQ)
Both IBM (IBM) at 0.80 and Gartner (IT) at 0.94 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.
IBM
Software & Services industry group
0.80
- Max
- 5.55
- Q3
- 2.88
- Median
- 1.73
- Q1
- 1.07
- IBM
- 0.80
- Min
- 0.03
IT
Software & Services industry group
0.94
- Max
- 5.55
- Q3
- 2.88
- Median
- 1.73
- Q1
- 1.07
- IT
- 0.94
- Min
- 0.03
Debt-to-Equity Ratio (MRQ)
Both balance sheets lean debt-heavy versus peers, but IT is more stretched: IBM (IBM) at 2.11 sits in the higher-leverage quartile and Gartner (IT) at 52.93 is above its industry benchmark range.
IBM
Software & Services industry group
2.11
- Max
- 2.31
- IBM
- 2.11
- Q3
- 1.06
- Median
- 0.32
- Q1
- 0.06
- Min
- 0.00
IT
Software & Services industry group
52.93
- IT
- 52.93
- Max
- 2.31
- Q3
- 1.06
- Median
- 0.32
- Q1
- 0.06
- Min
- 0.00
Financial Strength at a Glance
| Metric | IBM | IT |
|---|---|---|
| Current Ratio (MRQ) | 0.80 | 0.94 |
| Debt-to-Equity Ratio (MRQ) | 2.11 | 52.93 |
| Net Debt / EBITDA | 3.49 | 1.26 |
Dividends
Dividend Yield (TTM)
Gartner (IT) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile IBM (IBM) reports a yield of 2.48%, ranking against industry peers normally.
IBM
Software & Services industry group
2.48%
- IBM
- 2.48%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
IT
Software & Services industry group
0.00%
- IT
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Gartner (IT) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile IBM (IBM) reports a payout of 59.47%, ranking against industry peers normally.
IBM
Software & Services industry group
59.47%
- IBM
- 59.47%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
IT
Software & Services industry group
0.00%
- IT
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividends at a Glance
| Metric | IBM | IT |
|---|---|---|
| Dividend Yield (TTM) | 2.48% | 0.00% |
| Dividend Payout Ratio (TTM) | 59.47% | 0.00% |