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IBM vs. IT: IBM vs. Gartner Stock Comparison

How do IBM (IBM) and Gartner (IT) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

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.

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 Capitalization231.55 billion USD11.99 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962October 5, 1993
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

IBM
IT
GSPC
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IBM (IBM) vs. Gartner (IT), with S&P 500 (GSPC) for reference: 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.

Calendar-Year Returns

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Calendar-year total returns for IBM (IBM) and Gartner (IT). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for IBM (IBM) and Gartner (IT)
MetricIBMIT
Total Return (1Y)-16.98%-17.60%
Total Return (3Y, Annualized)22.40%-22.07%
Total Return (5Y, Annualized)19.64%-10.95%

Risk Profile

Drawdown History

IBM
IT
GSPC
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IBM (IBM) vs. Gartner (IT), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for IBM (IBM) and Gartner (IT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for IBM (IBM) and Gartner (IT)
MetricIBMIT
Volatility (1Y, Annualized)48.48%58.29%
Beta (5Y)0.790.95
Max Drawdown (5Y)-37.50%-77.21%
Avg. Volume (3M)5.30M1.14M

Risk-Adjusted Performance

Risk-Return Positioning

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IBM and IT are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for IBM (IBM) and Gartner (IT)
MetricIBMIT
Sharpe Ratio (1Y)-0.44-0.38
Sortino Ratio (1Y)-0.56-0.54

Profitability

ROE (TTM)

Both companies show strong equity returns, but Gartner (IT) at 365.76% is the standout with ROE above its industry range; IBM (IBM) at 34.77% also sits in the top quartile.

IBM

Software & Services industry group

34.77%

Max
53.85%
IBM
34.77%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%

IT

Software & Services industry group

365.76%

IT
365.76%
Max
53.85%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%
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IBM (IBM) vs. Gartner (IT): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

IBM (IBM) at 15.99% retains a top-quartile share of revenue as profit, ahead of Gartner (IT) at 14.81%, which keeps about the industry-typical share.

IBM

Software & Services industry group

15.99%

Max
41.17%
IBM
15.99%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%

IT

Software & Services industry group

14.81%

Max
41.17%
Q3
15.28%
IT
14.81%
Median
4.63%
Q1
-5.42%
Min
-33.17%
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IBM (IBM) vs. Gartner (IT): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Gartner (IT) at 18.58% operates in the top operating margin quartile, ahead of IBM (IBM) at 16.97%, which runs around its industry’s norm.

IBM

Software & Services industry group

16.97%

Max
46.89%
Q3
17.64%
IBM
16.97%
Median
8.73%
Q1
-2.13%
Min
-30.45%

IT

Software & Services industry group

18.58%

Max
46.89%
IT
18.58%
Q3
17.64%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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IBM (IBM) vs. Gartner (IT): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for IBM (IBM) and Gartner (IT)
MetricIBMIT
ROE (TTM)34.77%365.76%
ROA (TTM)5.33%11.33%
Net Margin (TTM)15.99%14.81%
Operating Margin (TTM)16.97%18.58%
Gross Margin (TTM)57.97%70.18%

Growth

Revenue Growth

IBM (IBM) at 7.62% is around its peer norm for revenue growth, while Gartner (IT) at 3.67% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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

EPS Growth

IBM (IBM) at 73.72% sits in the top EPS growth quartile, while Gartner (IT) at -39.69% is in the bottom quartile, showing a clear gap in earnings momentum.

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

Growth Metrics

Growth metrics for IBM (IBM) and Gartner (IT)
MetricIBMIT
Revenue Growth (YoY)7.62%3.67%
Revenue Growth (3Y CAGR)3.72%5.87%
EPS Growth (YoY)73.72%-39.69%
EPS Growth (3Y CAGR)83.76%-1.05%

Financial Strength

Current Ratio (MRQ)

Both IBM (IBM) at 0.86 and Gartner (IT) at 0.91 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

0.86

Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
IBM
0.86
Min
0.03

IT

Software & Services industry group

0.91

Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
IT
0.91
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 / Equity (MRQ)

Only one side’s leverage can be read here: IBM (IBM) carries debt-to-equity ratio of 1.85 against its industry range, while Gartner (IT) reports no figure this period.

IBM

Software & Services industry group

1.85

Max
2.52
IBM
1.85
Q3
1.13
Median
0.40
Q1
0.07
Min
0.00

IT

Software & Services industry group

--

Max
2.52
Q3
1.13
Median
0.40
Q1
0.07
Min
0.00
IT
--
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IBM (IBM) vs. Gartner (IT): IT does not report debt-to-equity ratio, so it has no value marker; IBM is benchmarked against the Software & Services industry group.

Financial Strength Metrics

Financial strength metrics for IBM (IBM) and Gartner (IT)
MetricIBMIT
Current Ratio (MRQ)0.860.91
Debt / Equity (MRQ)1.85--
Net Debt / EBITDA3.371.18

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 2.73%, ranking against industry peers normally.

IBM

Software & Services industry group

2.73%

IBM
2.73%
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 57.51%, ranking against industry peers normally.

IBM

Software & Services industry group

57.51%

IBM
57.51%
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.

Dividend Metrics

Dividend metrics for IBM (IBM) and Gartner (IT)
MetricIBMIT
Dividend Yield (TTM)2.73%0.00%
Dividend Payout Ratio (TTM)57.51%0.00%

Valuation

P/E Ratio (TTM)

Gartner (IT) at 13.62 sits in the cheaper P/E ratio quartile, while IBM (IBM) at 20.90 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

20.90

Max
112.94
Q3
60.32
Median
32.91
IBM
20.90
Q1
18.77
Min
6.69

IT

Software & Services industry group

13.62

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
IT
13.62
Min
6.69
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IBM (IBM) vs. Gartner (IT): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Gartner (IT) at 1.86 sits in the cheaper P/S ratio quartile while IBM (IBM) at 3.31 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

3.31

Max
17.91
Q3
8.78
Median
4.25
IBM
3.31
Q1
2.23
Min
0.02

IT

Software & Services industry group

1.86

Max
17.91
Q3
8.78
Median
4.25
Q1
2.23
IT
1.86
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.

P/B Ratio (MRQ)

Gartner (IT) reports a negative P/B ratio of -348.81, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile IBM (IBM) reports 6.52, ranking against industry peers normally.

IBM

Software & Services industry group

6.52

Max
16.63
Q3
8.50
IBM
6.52
Median
4.30
Q1
1.92
Min
-3.90

IT

Software & Services industry group

-348.81

Max
16.63
Q3
8.50
Median
4.30
Q1
1.92
Min
-3.90
IT
-348.81
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IBM (IBM) vs. Gartner (IT): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for IBM (IBM) and Gartner (IT)
MetricIBMIT
P/E Ratio (TTM)20.9013.62
P/S Ratio (TTM)3.311.86
P/B Ratio (MRQ)6.52-348.81
Free Cash Flow Yield (TTM)5.34%8.90%