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IBM vs. MSTR: IBM vs. Strategy Stock Comparison

How do IBM (IBM) and Strategy (MSTR) 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 Strategy (MSTR) both fall under the Software & Services industry group, but IBM is classified in IT Services while MSTR is classified in Software.

Company profile comparison for IBM (IBM) and Strategy (MSTR)
Profile ItemIBMMSTR
NameInternational Business Machines CorporationStrategy Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustryIT ServicesSoftware
GICS Sub-IndustryIT Consulting & Other ServicesApplication Software
Market Capitalization231.55 billion USD54.57 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateJanuary 2, 1962June 11, 1998
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

IBM
MSTR
GSPC
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IBM (IBM) vs. Strategy (MSTR), 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 Strategy (MSTR). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for IBM (IBM) and Strategy (MSTR)
MetricIBMMSTR
Total Return (1Y)-16.98%-48.13%
Total Return (3Y, Annualized)22.40%36.44%
Total Return (5Y, Annualized)19.64%7.87%

Risk Profile

Drawdown History

IBM
MSTR
GSPC
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IBM (IBM) vs. Strategy (MSTR), 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 Strategy (MSTR). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Strategy (MSTR) carries a highly aggressive beta of 3.60, indicating much higher sensitivity to broad-market moves, whereas IBM (IBM) is closer to market-like at 0.79 — a noticeable difference in market-sensitivity profile.

Risk profile metrics for IBM (IBM) and Strategy (MSTR)
MetricIBMMSTR
Volatility (1Y, Annualized)48.48%82.34%
Beta (5Y)0.793.60
Max Drawdown (5Y)-37.50%-84.09%
Avg. Volume (3M)5.30M22.35M

Risk-Adjusted Performance

Risk-Return Positioning

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IBM and MSTR 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 Strategy (MSTR)
MetricIBMMSTR
Sharpe Ratio (1Y)-0.44-0.64
Sortino Ratio (1Y)-0.56-0.97

Profitability

ROE (TTM)

Strategy (MSTR) reports a negative ROE of -21.59%; negative ROE can reflect losses or negative shareholders’ equity, so it is harder to read as capital efficiency. Meanwhile IBM (IBM) reports 34.77%, ranking against industry peers normally.

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%

MSTR

Software & Services industry group

-21.59%

Max
53.85%
Q3
17.90%
Median
6.59%
Q1
-9.59%
MSTR
-21.59%
Min
-50.52%
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IBM (IBM) vs. Strategy (MSTR): 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 Strategy (MSTR) at 0.00%, 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%

MSTR

Software & Services industry group

0.00%

Max
41.17%
Q3
15.28%
Median
4.63%
MSTR
0.00%
Q1
-5.42%
Min
-33.17%
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IBM (IBM) vs. Strategy (MSTR): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Strategy (MSTR) reports a negative operating margin of -2.07%, usually indicating that operating costs exceeded revenue at the operating-income line. Meanwhile IBM (IBM) reports 16.97%, ranking against industry peers normally.

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%

MSTR

Software & Services industry group

-2.07%

Max
46.89%
Q3
17.64%
Median
8.73%
MSTR
-2.07%
Q1
-2.13%
Min
-30.45%
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IBM (IBM) vs. Strategy (MSTR): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for IBM (IBM) and Strategy (MSTR)
MetricIBMMSTR
ROE (TTM)34.77%-21.59%
ROA (TTM)5.33%-4.52%
Net Margin (TTM)15.99%0.00%
Operating Margin (TTM)16.97%-2.07%
Gross Margin (TTM)57.97%67.84%

Growth

Revenue Growth

IBM (IBM) at 7.62% is around its peer norm for revenue growth, while Strategy (MSTR) at 2.97% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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

EPS Growth

Only one side can be read here: IBM (IBM) reports EPS growth of 73.72%, ranked against its industry; Strategy (MSTR) has no EPS growth figure this period.

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

Growth Metrics

Growth metrics for IBM (IBM) and Strategy (MSTR)
MetricIBMMSTR
Revenue Growth (YoY)7.62%2.97%
Revenue Growth (3Y CAGR)3.72%-1.49%
EPS Growth (YoY)73.72%--
EPS Growth (3Y CAGR)83.76%--

Financial Strength

Current Ratio (MRQ)

Strategy (MSTR) at 4.04 carries current ratio above its industry’s typical mid-range, while IBM (IBM) at 0.86 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.

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

MSTR

Software & Services industry group

4.04

Max
5.11
MSTR
4.04
Q3
2.77
Median
1.67
Q1
1.01
Min
0.03
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IBM (IBM) vs. Strategy (MSTR): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Strategy (MSTR) at 0.10 carries an industry-typical debt-to-equity mix, while IBM (IBM) at 1.85 uses more debt funding than most peers.

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

MSTR

Software & Services industry group

0.10

Max
2.52
Q3
1.13
Median
0.40
MSTR
0.10
Q1
0.07
Min
0.00
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IBM (IBM) vs. Strategy (MSTR): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for IBM (IBM) and Strategy (MSTR)
MetricIBMMSTR
Current Ratio (MRQ)0.864.04
Debt / Equity (MRQ)1.850.10
Net Debt / EBITDA3.37--

Dividends

Dividend Yield (TTM)

Strategy (MSTR) 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%

MSTR

Software & Services industry group

0.00%

MSTR
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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IBM (IBM) vs. Strategy (MSTR): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Strategy (MSTR) 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%

MSTR

Software & Services industry group

0.00%

MSTR
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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IBM (IBM) vs. Strategy (MSTR): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for IBM (IBM) and Strategy (MSTR)
MetricIBMMSTR
Dividend Yield (TTM)2.73%0.00%
Dividend Payout Ratio (TTM)57.51%0.00%

Valuation

P/E Ratio (TTM)

An earnings multiple is available for just one side: IBM (IBM) trades at 20.90 times trailing earnings, ranked against its peers, while Strategy (MSTR) has no P/E ratio this period.

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

MSTR

Software & Services industry group

--

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69
MSTR
--
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IBM (IBM) vs. Strategy (MSTR): MSTR does not report P/E ratio, so it has no value marker; IBM is benchmarked against the Software & Services industry group.

P/S Ratio (TTM)

IBM (IBM) at 3.31 prices around its industry’s typical P/S ratio, while Strategy (MSTR) at 110.23 clears its benchmark range — MSTR looks notably rich on sales.

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

MSTR

Software & Services industry group

110.23

MSTR
110.23
Max
17.91
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
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IBM (IBM) vs. Strategy (MSTR): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Strategy (MSTR) at 0.98 sits in the lower P/B ratio quartile against book while IBM (IBM) at 6.52 is valued near its industry’s middle — MSTR is cheaper on assets, though weigh it against ROE and asset quality.

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

MSTR

Software & Services industry group

0.98

Max
16.63
Q3
8.50
Median
4.30
Q1
1.92
MSTR
0.98
Min
-3.90
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IBM (IBM) vs. Strategy (MSTR): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for IBM (IBM) and Strategy (MSTR)
MetricIBMMSTR
P/E Ratio (TTM)20.90--
P/S Ratio (TTM)3.31110.23
P/B Ratio (MRQ)6.520.98
Free Cash Flow Yield (TTM)5.34%-5.94%