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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

IBM
IT
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IBM (IBM) vs. Gartner (IT): 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 IBM (IBM) and Gartner (IT). Returns over one year are annualized.

Performance at a Glance

Performance metrics for IBM (IBM) and Gartner (IT)
MetricIBMIT
1-Year Return-0.65%-64.17%

Risk

Drawdown

IBM
IT
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IBM (IBM) vs. Gartner (IT): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Risk metrics for IBM (IBM) and Gartner (IT)
MetricIBMIT
1-Year Volatility39.53%52.53%
Beta0.690.95
3-Month Avg. Volume7.87M1.57M

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.

Company profile comparison for IBM (IBM) and Gartner (IT)
Profile ItemIBMIT
NameInternational Business Machines CorporationGartner Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustryIT ServicesIT Services
GICS Sub-IndustryIT Consulting & Other ServicesIT Consulting & Other Services
Market Capitalization255.87 billion USD9.92 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962October 5, 1993
Security TypeCommon StockCommon 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
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IBM (IBM) vs. Gartner (IT): A comparison of their P/E ratio against the Software & Services industry group benchmark.

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
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IBM (IBM) vs. Gartner (IT): A comparison of their P/S ratio against the Software & Services industry group benchmark.

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
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IBM (IBM) vs. Gartner (IT): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation at a Glance

Valuation metrics for IBM (IBM) and Gartner (IT)
MetricIBMIT
Price-to-Earnings Ratio (TTM)24.0914.64
Price-to-Sales Ratio (TTM)3.711.53
Price-to-Book Ratio (MRQ)7.76158.64
Free Cash Flow Yield5.11%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%
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IBM (IBM) vs. Gartner (IT): A comparison of their ROE against the Software & Services industry group benchmark.

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%
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IBM (IBM) vs. Gartner (IT): A comparison of their net margin against the Software & Services industry group benchmark.

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%
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IBM (IBM) vs. Gartner (IT): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability at a Glance

Profitability metrics for IBM (IBM) and Gartner (IT)
MetricIBMIT
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

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IBM (IBM) vs. Gartner (IT): A comparison of their Revenue Growth across different time periods.

Revenue Growth at a Glance

Revenue growth metrics for IBM (IBM) and Gartner (IT)
MetricIBMIT
1-Year Revenue Growth7.62%3.67%
3-Year Revenue CAGR3.72%5.87%

EPS Growth

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IBM (IBM) vs. Gartner (IT): A comparison of their EPS Growth across different time periods.

EPS Growth at a Glance

EPS growth metrics for IBM (IBM) and Gartner (IT)
MetricIBMIT
1-Year EPS Growth73.72%-39.69%
3-Year EPS CAGR83.76%-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
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IBM (IBM) vs. Gartner (IT): A comparison of their current ratio against the Software & Services industry group benchmark.

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
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IBM (IBM) vs. Gartner (IT): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength at a Glance

Financial strength metrics for IBM (IBM) and Gartner (IT)
MetricIBMIT
Current Ratio (MRQ)0.800.94
Debt-to-Equity Ratio (MRQ)2.1152.93
Net Debt / EBITDA3.491.26

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%
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IBM (IBM) vs. Gartner (IT): A comparison of their dividend yield against the Software & Services industry group benchmark.

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%
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IBM (IBM) vs. Gartner (IT): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividends at a Glance

Dividend metrics for IBM (IBM) and Gartner (IT)
MetricIBMIT
Dividend Yield (TTM)2.48%0.00%
Dividend Payout Ratio (TTM)59.47%0.00%