IBM vs. LIN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at IBM and LIN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | IBM | LIN |
|---|---|---|
| Company Name | International Business Machines Corporation | Linde plc |
| Country | United States | United Kingdom |
| GICS Sector | Information Technology | Materials |
| GICS Industry | IT Services | Chemicals |
| Market Capitalization | 225.94 billion USD | 226.18 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | January 2, 1962 | June 17, 1992 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of IBM and LIN 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 | IBM | LIN |
|---|---|---|
| 5-Day Price Return | 2.29% | 0.99% |
| 13-Week Price Return | -9.63% | 4.79% |
| 26-Week Price Return | -6.42% | 4.62% |
| 52-Week Price Return | 24.56% | 5.19% |
| Month-to-Date Return | -4.19% | 4.80% |
| Year-to-Date Return | 10.34% | 15.21% |
| 10-Day Avg. Volume | 5.60M | 1.36M |
| 3-Month Avg. Volume | 4.60M | 1.77M |
| 3-Month Volatility | 24.47% | 12.85% |
| Beta | 0.69 | 0.96 |
Profitability
Return on Equity (TTM)
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.
LIN
17.46%
Chemicals Industry
- Max
- 26.17%
- Q3
- 13.48%
- Median
- 8.13%
- Q1
- 2.52%
- Min
- -11.86%
In the upper quartile for the Chemicals industry, LIN’s Return on Equity of 17.46% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
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.
LIN
20.20%
Chemicals Industry
- Max
- 21.80%
- Q3
- 9.57%
- Median
- 4.44%
- Q1
- 1.14%
- Min
- -11.30%
A Net Profit Margin of 20.20% places LIN in the upper quartile for the Chemicals industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
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.
LIN
26.75%
Chemicals Industry
- Max
- 27.33%
- Q3
- 13.97%
- Median
- 8.08%
- Q1
- 4.46%
- Min
- -8.10%
An Operating Profit Margin of 26.75% places LIN in the upper quartile for the Chemicals industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | IBM | LIN |
|---|---|---|
| Return on Equity (TTM) | 21.99% | 17.46% |
| Return on Assets (TTM) | 4.12% | 8.10% |
| Net Profit Margin (TTM) | 9.11% | 20.20% |
| Operating Profit Margin (TTM) | 9.77% | 26.75% |
| Gross Profit Margin (TTM) | 57.57% | 48.45% |
Financial Strength
Current Ratio (MRQ)
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.
LIN
0.93
Chemicals Industry
- Max
- 3.38
- Q3
- 2.23
- Median
- 1.73
- Q1
- 1.39
- Min
- 0.55
LIN’s Current Ratio of 0.93 falls into the lower quartile for the Chemicals 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)
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.
LIN
0.67
Chemicals Industry
- Max
- 1.65
- Q3
- 0.94
- Median
- 0.65
- Q1
- 0.41
- Min
- 0.00
LIN’s Debt-to-Equity Ratio of 0.67 is typical for the Chemicals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
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.
LIN
33.09
Chemicals Industry
- Max
- 56.43
- Q3
- 26.33
- Median
- 9.38
- Q1
- 3.10
- Min
- -9.39
LIN’s Interest Coverage Ratio of 33.09 is in the upper quartile for the Chemicals industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | IBM | LIN |
|---|---|---|
| Current Ratio (MRQ) | 0.91 | 0.93 |
| Quick Ratio (MRQ) | 0.80 | 0.70 |
| Debt-to-Equity Ratio (MRQ) | 2.33 | 0.67 |
| Interest Coverage Ratio (TTM) | 45.57 | 33.09 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
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.
LIN
1.21%
Chemicals Industry
- Max
- 6.56%
- Q3
- 4.04%
- Median
- 2.47%
- Q1
- 1.45%
- Min
- 0.00%
LIN’s Dividend Yield of 1.21% is in the lower quartile for the Chemicals industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
Dividend Payout Ratio (TTM)
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.
LIN
40.71%
Chemicals Industry
- Max
- 181.25%
- Q3
- 95.01%
- Median
- 53.52%
- Q1
- 26.59%
- Min
- 0.00%
LIN’s Dividend Payout Ratio of 40.71% is within the typical range for the Chemicals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | IBM | LIN |
|---|---|---|
| Dividend Yield (TTM) | 2.76% | 1.21% |
| Dividend Payout Ratio (TTM) | 75.57% | 40.71% |
Valuation
Price-to-Earnings Ratio (TTM)
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.
LIN
33.69
Chemicals Industry
- Max
- 42.94
- Q3
- 29.77
- Median
- 20.37
- Q1
- 14.27
- Min
- 6.19
A P/E Ratio of 33.69 places LIN in the upper quartile for the Chemicals industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
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.
LIN
6.80
Chemicals Industry
- Max
- 4.36
- Q3
- 2.23
- Median
- 1.01
- Q1
- 0.55
- Min
- 0.16
With a P/S Ratio of 6.80, LIN trades at a valuation that eclipses even the highest in the Chemicals industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
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.
LIN
5.73
Chemicals Industry
- Max
- 4.92
- Q3
- 2.56
- Median
- 1.54
- Q1
- 0.97
- Min
- 0.30
At 5.73, LIN’s P/B Ratio is at an extreme premium to the Chemicals 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.
Valuation at a Glance
| Symbol | IBM | LIN |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 38.56 | 33.69 |
| Price-to-Sales Ratio (TTM) | 3.51 | 6.80 |
| Price-to-Book Ratio (MRQ) | 9.96 | 5.73 |
| Price-to-Free Cash Flow Ratio (TTM) | 19.13 | 44.62 |