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

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

Company Profile

SymbolIBMMA
Company NameInternational Business Machines CorporationMastercard Incorporated
CountryUnited StatesUnited States
GICS SectorInformation TechnologyFinancials
GICS IndustryIT ServicesFinancial Services
Market Capitalization226.82 billion USD538.15 billion USD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962May 25, 2006
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of IBM and MA 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. MA: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolIBMMA
5-Day Price Return1.70%0.35%
13-Week Price Return-5.88%3.03%
26-Week Price Return-5.53%5.54%
52-Week Price Return22.69%26.17%
Month-to-Date Return-3.82%5.09%
Year-to-Date Return10.76%13.05%
10-Day Avg. Volume3.47M2.43M
3-Month Avg. Volume4.54M2.67M
3-Month Volatility24.24%20.92%
Beta0.690.99

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.

MA

191.02%

Financial Services Industry

Max
40.58%
Q3
20.06%
Median
10.67%
Q1
4.19%
Min
-10.31%

MA’s Return on Equity of 191.02% is exceptionally high, placing it well beyond the typical range for the Financial Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

IBM vs. MA: A comparison of their Return on Equity (TTM) against their respective IT Services and Financial Services industry benchmarks.

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.

MA

44.93%

Financial Services Industry

Max
52.86%
Q3
25.58%
Median
12.23%
Q1
6.64%
Min
-9.92%

A Net Profit Margin of 44.93% places MA in the upper quartile for the Financial Services industry, signifying strong profitability and more effective cost management than most of its peers.

IBM vs. MA: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Financial Services industry benchmarks.

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.

MA

55.78%

Financial Services Industry

Max
77.28%
Q3
37.68%
Median
18.17%
Q1
9.27%
Min
-8.19%

An Operating Profit Margin of 55.78% places MA in the upper quartile for the Financial Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

IBM vs. MA: A comparison of their Operating Profit Margin (TTM) against their respective IT Services and Financial Services industry benchmarks.

Profitability at a Glance

SymbolIBMMA
Return on Equity (TTM)21.99%191.02%
Return on Assets (TTM)4.12%27.84%
Net Profit Margin (TTM)9.11%44.93%
Operating Profit Margin (TTM)9.77%55.78%
Gross Profit Margin (TTM)57.57%--

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.

MA

1.16

Financial Services Industry

Max
4.58
Q3
2.59
Median
1.33
Q1
0.69
Min
0.01

For the Financial Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

IBM vs. MA: A comparison of their Current Ratio (MRQ) against their respective IT Services and Financial Services industry benchmarks.

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.

MA

2.42

Financial Services Industry

Max
4.96
Q3
2.10
Median
0.57
Q1
0.12
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Financial Services industry.

IBM vs. MA: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Financial Services industry benchmarks.

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.

MA

37.93

Financial Services Industry

Max
136.23
Q3
56.08
Median
6.55
Q1
2.01
Min
-33.27

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial Services industry.

IBM vs. MA: A comparison of their Interest Coverage Ratio (TTM) against their respective IT Services and Financial Services industry benchmarks.

Financial Strength at a Glance

SymbolIBMMA
Current Ratio (MRQ)0.911.16
Quick Ratio (MRQ)0.801.16
Debt-to-Equity Ratio (MRQ)2.332.42
Interest Coverage Ratio (TTM)45.5737.93

Growth

Revenue Growth

IBM vs. MA: 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. MA: 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

2.76%

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.

MA

0.49%

Financial Services Industry

Max
8.18%
Q3
3.60%
Median
1.56%
Q1
0.00%
Min
0.00%

MA’s Dividend Yield of 0.49% is consistent with its peers in the Financial Services industry, providing a dividend return that is standard for its sector.

IBM vs. MA: A comparison of their Dividend Yield (TTM) against their respective IT Services and Financial Services industry benchmarks.

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.

MA

19.15%

Financial Services Industry

Max
155.56%
Q3
63.71%
Median
18.08%
Q1
0.00%
Min
0.00%

MA’s Dividend Payout Ratio of 19.15% is within the typical range for the Financial Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

IBM vs. MA: A comparison of their Dividend Payout Ratio (TTM) against their respective IT Services and Financial Services industry benchmarks.

Dividend at a Glance

SymbolIBMMA
Dividend Yield (TTM)2.76%0.49%
Dividend Payout Ratio (TTM)75.57%19.15%

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.

MA

39.22

Financial Services Industry

Max
63.23
Q3
32.10
Median
14.41
Q1
10.81
Min
0.37

A P/E Ratio of 39.22 places MA in the upper quartile for the Financial Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

IBM vs. MA: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Financial Services industry benchmarks.

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.

MA

17.62

Financial Services Industry

Max
11.16
Q3
5.45
Median
2.61
Q1
1.25
Min
0.04

The P/S Ratio is often not a primary valuation tool in the Financial Services industry.

IBM vs. MA: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Financial Services industry benchmarks.

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.

MA

64.98

Financial Services Industry

Max
7.09
Q3
3.79
Median
1.46
Q1
0.83
Min
0.04

At 64.98, MA’s P/B Ratio is at an extreme premium to the Financial Services 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.

IBM vs. MA: A comparison of their Price-to-Book Ratio (MRQ) against their respective IT Services and Financial Services industry benchmarks.

Valuation at a Glance

SymbolIBMMA
Price-to-Earnings Ratio (TTM)38.5639.22
Price-to-Sales Ratio (TTM)3.5117.62
Price-to-Book Ratio (MRQ)9.9664.98
Price-to-Free Cash Flow Ratio (TTM)19.1333.58