IBM vs. MSTR: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at IBM and MSTR, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | IBM | MSTR |
|---|---|---|
| Company Name | International Business Machines Corporation | Strategy Inc |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | IT Services | Software |
| Market Capitalization | 288.95 billion USD | 68.64 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | January 2, 1962 | June 11, 1998 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of IBM and MSTR 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 | MSTR |
|---|---|---|
| 5-Day Price Return | 2.75% | -3.28% |
| 13-Week Price Return | 30.82% | -40.32% |
| 26-Week Price Return | 22.01% | -39.14% |
| 52-Week Price Return | 44.66% | -11.79% |
| Month-to-Date Return | 0.56% | -11.37% |
| Year-to-Date Return | 40.62% | -17.52% |
| 10-Day Avg. Volume | 5.27M | 12.53M |
| 3-Month Avg. Volume | 5.41M | 11.68M |
| 3-Month Volatility | 27.62% | 56.82% |
| Beta | 0.68 | 3.42 |
Profitability
Return on Equity (TTM)
IBM
28.86%
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 28.86% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
MSTR
19.76%
Software Industry
- Max
- 66.28%
- Q3
- 21.28%
- Median
- 9.33%
- Q1
- -8.77%
- Min
- -48.16%
MSTR’s Return on Equity of 19.76% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
IBM
12.09%
IT Services Industry
- Max
- 19.71%
- Q3
- 11.01%
- Median
- 6.66%
- Q1
- 2.96%
- Min
- -6.22%
A Net Profit Margin of 12.09% places IBM in the upper quartile for the IT Services industry, signifying strong profitability and more effective cost management than most of its peers.
MSTR
1,667.09%
Software Industry
- Max
- 51.92%
- Q3
- 19.23%
- Median
- 6.98%
- Q1
- -7.14%
- Min
- -41.00%
MSTR’s Net Profit Margin of 1,667.09% is exceptionally high, placing it well beyond the typical range for the Software industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin (TTM)
IBM
14.51%
IT Services Industry
- Max
- 22.44%
- Q3
- 14.90%
- Median
- 8.82%
- Q1
- 4.91%
- Min
- -9.89%
IBM’s Operating Profit Margin of 14.51% is around the midpoint for the IT Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
MSTR
2,312.91%
Software Industry
- Max
- 60.40%
- Q3
- 21.25%
- Median
- 9.90%
- Q1
- -4.97%
- Min
- -43.50%
MSTR’s Operating Profit Margin of 2,312.91% is exceptionally high, placing it well above the typical range for the Software industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | IBM | MSTR |
|---|---|---|
| Return on Equity (TTM) | 28.86% | 19.76% |
| Return on Assets (TTM) | 5.48% | 15.21% |
| Net Profit Margin (TTM) | 12.09% | 1,667.09% |
| Operating Profit Margin (TTM) | 14.51% | 2,312.91% |
| Gross Profit Margin (TTM) | 57.81% | 70.12% |
Financial Strength
Current Ratio (MRQ)
IBM
0.93
IT Services Industry
- Max
- 3.17
- Q3
- 2.00
- Median
- 1.47
- Q1
- 1.05
- Min
- 0.52
IBM’s Current Ratio of 0.93 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.
MSTR
0.66
Software Industry
- Max
- 4.29
- Q3
- 2.37
- Median
- 1.40
- Q1
- 1.03
- Min
- 0.25
MSTR’s Current Ratio of 0.66 falls into the lower quartile for the Software 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
2.26
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 2.26. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
MSTR
0.14
Software Industry
- Max
- 2.16
- Q3
- 0.86
- Median
- 0.31
- Q1
- 0.00
- Min
- 0.00
MSTR’s Debt-to-Equity Ratio of 0.14 is typical for the Software 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
- 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.
MSTR
-30.23
Software Industry
- Max
- 89.65
- Q3
- 32.64
- Median
- 1.00
- Q1
- -9.84
- Min
- -71.23
MSTR has a negative Interest Coverage Ratio of -30.23. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | IBM | MSTR |
|---|---|---|
| Current Ratio (MRQ) | 0.93 | 0.66 |
| Quick Ratio (MRQ) | 0.81 | 0.54 |
| Debt-to-Equity Ratio (MRQ) | 2.26 | 0.14 |
| Interest Coverage Ratio (TTM) | 45.57 | -30.23 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
IBM
2.17%
IT Services Industry
- Max
- 2.79%
- Q3
- 1.76%
- Median
- 0.58%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.17%, IBM offers a more attractive income stream than most of its peers in the IT Services industry, signaling a strong commitment to shareholder returns.
MSTR
0.28%
Software Industry
- Max
- 0.22%
- Q3
- 0.11%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSTR’s Dividend Yield of 0.28% is exceptionally high, placing it well above the typical range for the Software industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio (TTM)
IBM
78.74%
IT Services Industry
- Max
- 107.85%
- Q3
- 52.62%
- Median
- 22.53%
- Q1
- 0.00%
- Min
- 0.00%
IBM’s Dividend Payout Ratio of 78.74% 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.
MSTR
0.00%
Software Industry
- Max
- 3.29%
- Q3
- 2.41%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSTR 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.
Dividend at a Glance
| Symbol | IBM | MSTR |
|---|---|---|
| Dividend Yield (TTM) | 2.17% | 0.28% |
| Dividend Payout Ratio (TTM) | 78.74% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
IBM
36.28
IT Services Industry
- Max
- 56.41
- Q3
- 33.17
- Median
- 23.17
- Q1
- 16.18
- Min
- 6.62
A P/E Ratio of 36.28 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.
MSTR
8.78
Software Industry
- Max
- 145.74
- Q3
- 94.88
- Median
- 45.35
- Q1
- 26.66
- Min
- 8.80
MSTR’s P/E Ratio of 8.78 is below the typical range for the Software industry. This may indicate that the stock is potentially undervalued, or it could reflect market concerns about the company’s future prospects.
Price-to-Sales Ratio (TTM)
IBM
4.39
IT Services Industry
- Max
- 5.99
- Q3
- 4.26
- Median
- 1.93
- Q1
- 0.97
- Min
- 0.12
IBM’s P/S Ratio of 4.39 is in the upper echelon for the IT Services 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.
MSTR
146.37
Software Industry
- Max
- 25.67
- Q3
- 13.68
- Median
- 8.28
- Q1
- 4.95
- Min
- 0.90
With a P/S Ratio of 146.37, MSTR trades at a valuation that eclipses even the highest in the Software 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
9.42
IT Services Industry
- Max
- 12.34
- Q3
- 7.54
- Median
- 3.84
- Q1
- 2.52
- Min
- 0.88
IBM’s P/B Ratio of 9.42 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.
MSTR
1.59
Software Industry
- Max
- 30.67
- Q3
- 14.92
- Median
- 8.52
- Q1
- 3.89
- Min
- 0.38
MSTR’s P/B Ratio of 1.59 is in the lower quartile for the Software industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | IBM | MSTR |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 36.28 | 8.78 |
| Price-to-Sales Ratio (TTM) | 4.39 | 146.37 |
| Price-to-Book Ratio (MRQ) | 9.42 | 1.59 |
| Price-to-Free Cash Flow Ratio (TTM) | 23.96 | 1,185.37 |