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IBM vs. KEYS: A Head-to-Head Stock Comparison

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Here’s a clear look at IBM and KEYS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolIBMKEYS
Company NameInternational Business Machines CorporationKeysight Technologies, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryIT ServicesElectronic Equipment, Instruments & Components
Market Capitalization268.90 billion USD29.79 billion USD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962October 20, 2014
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of IBM and KEYS 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.

IBM vs. KEYS: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolIBMKEYS
5-Day Price Return5.47%0.45%
13-Week Price Return-4.28%5.25%
26-Week Price Return12.71%11.57%
52-Week Price Return27.77%8.92%
Month-to-Date Return15.88%-1.04%
Year-to-Date Return28.35%7.76%
10-Day Avg. Volume6.49M1.13M
3-Month Avg. Volume4.69M0.92M
3-Month Volatility26.73%22.75%
Beta0.691.20

Profitability

Return on Equity (TTM)

IBM

21.99%

IT Services Industry

Max
32.78%
Q3
19.28%
Median
13.86%
Q1
5.50%
Min
-10.00%

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.

KEYS

10.15%

Electronic Equipment, Instruments & Components Industry

Max
21.57%
Q3
13.27%
Median
8.55%
Q1
4.42%
Min
-4.21%

KEYS’s Return on Equity of 10.15% is on par with the norm for the Electronic Equipment, Instruments & Components industry, indicating its profitability relative to shareholder equity is typical for the sector.

IBM vs. KEYS: A comparison of their Return on Equity (TTM) against their respective IT Services and Electronic Equipment, Instruments & Components industry benchmarks.

Net Profit Margin (TTM)

IBM

9.11%

IT Services Industry

Max
19.71%
Q3
11.01%
Median
6.66%
Q1
2.96%
Min
-6.22%

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.

KEYS

10.38%

Electronic Equipment, Instruments & Components Industry

Max
17.31%
Q3
10.85%
Median
7.26%
Q1
3.13%
Min
-3.00%

KEYS’s Net Profit Margin of 10.38% is aligned with the median group of its peers in the Electronic Equipment, Instruments & Components industry. This indicates its ability to convert revenue into profit is typical for the sector.

IBM vs. KEYS: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Electronic Equipment, Instruments & Components industry benchmarks.

Operating Profit Margin (TTM)

IBM

9.77%

IT Services Industry

Max
22.44%
Q3
14.90%
Median
8.82%
Q1
4.91%
Min
-9.89%

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.

KEYS

16.96%

Electronic Equipment, Instruments & Components Industry

Max
30.04%
Q3
15.08%
Median
9.55%
Q1
4.27%
Min
-3.83%

An Operating Profit Margin of 16.96% places KEYS in the upper quartile for the Electronic Equipment, Instruments & Components industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

IBM vs. KEYS: A comparison of their Operating Profit Margin (TTM) against their respective IT Services and Electronic Equipment, Instruments & Components industry benchmarks.

Profitability at a Glance

SymbolIBMKEYS
Return on Equity (TTM)21.99%10.15%
Return on Assets (TTM)4.12%5.46%
Net Profit Margin (TTM)9.11%10.38%
Operating Profit Margin (TTM)9.77%16.96%
Gross Profit Margin (TTM)57.57%62.37%

Financial Strength

Current Ratio (MRQ)

IBM

0.91

IT Services Industry

Max
3.17
Q3
2.00
Median
1.47
Q1
1.05
Min
0.52

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.

KEYS

3.59

Electronic Equipment, Instruments & Components Industry

Max
4.57
Q3
2.85
Median
2.03
Q1
1.51
Min
0.62

KEYS’s Current Ratio of 3.59 is in the upper quartile for the Electronic Equipment, Instruments & Components industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

IBM vs. KEYS: A comparison of their Current Ratio (MRQ) against their respective IT Services and Electronic Equipment, Instruments & Components industry benchmarks.

Debt-to-Equity Ratio (MRQ)

IBM

2.33

IT Services Industry

Max
3.11
Q3
1.55
Median
0.55
Q1
0.17
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.

KEYS

0.45

Electronic Equipment, Instruments & Components Industry

Max
1.14
Q3
0.54
Median
0.30
Q1
0.11
Min
0.00

KEYS’s Debt-to-Equity Ratio of 0.45 is typical for the Electronic Equipment, Instruments & Components industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

IBM vs. KEYS: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Electronic Equipment, Instruments & Components industry benchmarks.

Interest Coverage Ratio (TTM)

IBM

45.57

IT Services Industry

Max
129.00
Q3
56.00
Median
11.69
Q1
0.77
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.

KEYS

55.28

Electronic Equipment, Instruments & Components Industry

Max
79.05
Q3
36.62
Median
12.51
Q1
3.72
Min
-18.73

KEYS’s Interest Coverage Ratio of 55.28 is in the upper quartile for the Electronic Equipment, Instruments & Components industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

IBM vs. KEYS: A comparison of their Interest Coverage Ratio (TTM) against their respective IT Services and Electronic Equipment, Instruments & Components industry benchmarks.

Financial Strength at a Glance

SymbolIBMKEYS
Current Ratio (MRQ)0.913.59
Quick Ratio (MRQ)0.802.74
Debt-to-Equity Ratio (MRQ)2.330.45
Interest Coverage Ratio (TTM)45.5755.28

Growth

Revenue Growth

IBM vs. KEYS: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

IBM vs. KEYS: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

IBM

2.35%

IT Services Industry

Max
2.79%
Q3
1.76%
Median
0.58%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.35%, IBM offers a more attractive income stream than most of its peers in the IT Services industry, signaling a strong commitment to shareholder returns.

KEYS

0.00%

Electronic Equipment, Instruments & Components Industry

Max
5.36%
Q3
2.53%
Median
1.28%
Q1
0.16%
Min
0.00%

KEYS currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

IBM vs. KEYS: A comparison of their Dividend Yield (TTM) against their respective IT Services and Electronic Equipment, Instruments & Components industry benchmarks.

Dividend Payout Ratio (TTM)

IBM

75.57%

IT Services Industry

Max
107.85%
Q3
52.62%
Median
22.53%
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.

KEYS

0.00%

Electronic Equipment, Instruments & Components Industry

Max
218.94%
Q3
90.25%
Median
38.81%
Q1
3.69%
Min
0.00%

KEYS has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

IBM vs. KEYS: A comparison of their Dividend Payout Ratio (TTM) against their respective IT Services and Electronic Equipment, Instruments & Components industry benchmarks.

Dividend at a Glance

SymbolIBMKEYS
Dividend Yield (TTM)2.35%0.00%
Dividend Payout Ratio (TTM)75.57%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

IBM

45.14

IT Services Industry

Max
56.41
Q3
33.17
Median
23.17
Q1
16.18
Min
6.62

A P/E Ratio of 45.14 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.

KEYS

55.26

Electronic Equipment, Instruments & Components Industry

Max
74.74
Q3
42.40
Median
26.55
Q1
20.05
Min
10.12

A P/E Ratio of 55.26 places KEYS in the upper quartile for the Electronic Equipment, Instruments & Components industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

IBM vs. KEYS: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Electronic Equipment, Instruments & Components industry benchmarks.

Price-to-Sales Ratio (TTM)

IBM

4.11

IT Services Industry

Max
5.99
Q3
4.26
Median
1.93
Q1
0.97
Min
0.12

IBM’s P/S Ratio of 4.11 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.

KEYS

5.73

Electronic Equipment, Instruments & Components Industry

Max
6.79
Q3
3.58
Median
2.05
Q1
1.29
Min
0.20

KEYS’s P/S Ratio of 5.73 is in the upper echelon for the Electronic Equipment, Instruments & Components 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.

IBM vs. KEYS: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Electronic Equipment, Instruments & Components industry benchmarks.

Price-to-Book Ratio (MRQ)

IBM

9.96

IT Services Industry

Max
12.34
Q3
7.54
Median
3.84
Q1
2.52
Min
0.88

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.

KEYS

4.97

Electronic Equipment, Instruments & Components Industry

Max
6.92
Q3
3.80
Median
2.23
Q1
1.42
Min
0.44

KEYS’s P/B Ratio of 4.97 is in the upper tier for the Electronic Equipment, Instruments & Components 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.

IBM vs. KEYS: A comparison of their Price-to-Book Ratio (MRQ) against their respective IT Services and Electronic Equipment, Instruments & Components industry benchmarks.

Valuation at a Glance

SymbolIBMKEYS
Price-to-Earnings Ratio (TTM)45.1455.26
Price-to-Sales Ratio (TTM)4.115.73
Price-to-Book Ratio (MRQ)9.964.97
Price-to-Free Cash Flow Ratio (TTM)22.4021.24
IBM vs. KEYS: A Head-to-Head Stock Comparison