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

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

Company Profile

SymbolIBMMS
Company NameInternational Business Machines CorporationMorgan Stanley
CountryUnited StatesUnited States
GICS SectorInformation TechnologyFinancials
GICS IndustryIT ServicesCapital Markets
Market Capitalization225.94 billion USD230.06 billion USD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962February 23, 1993
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolIBMMS
5-Day Price Return2.29%-2.96%
13-Week Price Return-9.63%10.15%
26-Week Price Return-6.42%5.32%
52-Week Price Return24.56%41.64%
Month-to-Date Return-4.19%1.17%
Year-to-Date Return10.34%14.64%
10-Day Avg. Volume5.60M4.60M
3-Month Avg. Volume4.60M5.68M
3-Month Volatility24.47%18.37%
Beta0.691.34

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.

MS

13.95%

Capital Markets Industry

Max
38.97%
Q3
21.61%
Median
13.77%
Q1
8.31%
Min
-4.25%

MS’s Return on Equity of 13.95% is on par with the norm for the Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.

IBM vs. MS: A comparison of their Return on Equity (TTM) against their respective IT Services and Capital Markets 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.

MS

13.06%

Capital Markets Industry

Max
66.67%
Q3
35.11%
Median
23.49%
Q1
13.63%
Min
-15.18%

Falling into the lower quartile for the Capital Markets industry, MS’s Net Profit Margin of 13.06% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

IBM vs. MS: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Capital Markets 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.

MS

17.07%

Capital Markets Industry

Max
86.40%
Q3
46.46%
Median
32.80%
Q1
18.32%
Min
-21.87%

MS’s Operating Profit Margin of 17.07% is in the lower quartile for the Capital Markets industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

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

Profitability at a Glance

SymbolIBMMS
Return on Equity (TTM)21.99%13.95%
Return on Assets (TTM)4.12%1.15%
Net Profit Margin (TTM)9.11%13.06%
Operating Profit Margin (TTM)9.77%17.07%
Gross Profit Margin (TTM)57.57%54.42%

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.

MS

0.29

Capital Markets Industry

Max
3.76
Q3
1.89
Median
1.01
Q1
0.54
Min
-0.41

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

IBM vs. MS: A comparison of their Current Ratio (MRQ) against their respective IT Services and Capital Markets 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.

MS

7.68

Capital Markets Industry

Max
6.62
Q3
2.84
Median
1.02
Q1
0.32
Min
0.00

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

IBM vs. MS: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Capital Markets 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.

MS

1.25

Capital Markets Industry

Max
126.03
Q3
60.98
Median
11.77
Q1
4.95
Min
-36.26

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

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

Financial Strength at a Glance

SymbolIBMMS
Current Ratio (MRQ)0.910.29
Quick Ratio (MRQ)0.800.29
Debt-to-Equity Ratio (MRQ)2.337.68
Interest Coverage Ratio (TTM)45.571.25

Growth

Revenue Growth

IBM vs. MS: 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. MS: 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.

MS

2.78%

Capital Markets Industry

Max
10.26%
Q3
4.86%
Median
2.78%
Q1
1.22%
Min
0.00%

MS’s Dividend Yield of 2.78% is consistent with its peers in the Capital Markets industry, providing a dividend return that is standard for its sector.

IBM vs. MS: A comparison of their Dividend Yield (TTM) against their respective IT Services and Capital Markets 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.

MS

43.20%

Capital Markets Industry

Max
200.72%
Q3
101.92%
Median
57.97%
Q1
32.36%
Min
0.00%

MS’s Dividend Payout Ratio of 43.20% is within the typical range for the Capital Markets industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolIBMMS
Dividend Yield (TTM)2.76%2.78%
Dividend Payout Ratio (TTM)75.57%43.20%

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.

MS

15.56

Capital Markets Industry

Max
58.89
Q3
31.00
Median
18.54
Q1
12.09
Min
5.24

MS’s P/E Ratio of 15.56 is within the middle range for the Capital Markets industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

IBM vs. MS: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Capital Markets 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.

MS

2.03

Capital Markets Industry

Max
14.49
Q3
7.41
Median
4.68
Q1
2.25
Min
0.04

In the lower quartile for the Capital Markets industry, MS’s P/S Ratio of 2.03 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

IBM vs. MS: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Capital Markets 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.

MS

2.08

Capital Markets Industry

Max
9.48
Q3
4.94
Median
2.42
Q1
1.21
Min
0.38

MS’s P/B Ratio of 2.08 is within the conventional range for the Capital Markets industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

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

Valuation at a Glance

SymbolIBMMS
Price-to-Earnings Ratio (TTM)38.5615.56
Price-to-Sales Ratio (TTM)3.512.03
Price-to-Book Ratio (MRQ)9.962.08
Price-to-Free Cash Flow Ratio (TTM)19.1310.44