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IBM vs. NET: IBM vs. Cloudflare Stock Comparison

How do IBM (IBM) and Cloudflare (NET) 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 Cloudflare (NET) both belong to the IT Services industry, though IBM is classified under IT Consulting & Other Services while NET falls under Internet Services & Infrastructure.

Company profile comparison for IBM (IBM) and Cloudflare (NET)
Profile ItemIBMNET
NameInternational Business Machines CorporationCloudflare, Inc. Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustryIT ServicesIT Services
GICS Sub-IndustryIT Consulting & Other ServicesInternet Services & Infrastructure
Market Capitalization231.55 billion USD96.32 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962September 13, 2019
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

IBM
NET
GSPC
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IBM (IBM) vs. Cloudflare (NET), 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 Cloudflare (NET). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for IBM (IBM) and Cloudflare (NET)
MetricIBMNET
Total Return (1Y)-16.98%27.13%
Total Return (3Y, Annualized)22.40%68.21%
Total Return (5Y, Annualized)19.64%7.66%

Risk Profile

Drawdown History

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

Risk Metrics

Risk profile metrics for IBM (IBM) and Cloudflare (NET)
MetricIBMNET
Volatility (1Y, Annualized)48.48%67.16%
Beta (5Y)0.791.34
Max Drawdown (5Y)-37.50%-82.58%
Avg. Volume (3M)5.30M3.45M

Risk-Adjusted Performance

Risk-Return Positioning

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IBM and NET 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 Cloudflare (NET)
MetricIBMNET
Sharpe Ratio (1Y)-0.440.34
Sortino Ratio (1Y)-0.560.48

Profitability

ROE (TTM)

Cloudflare (NET) reports a negative ROE of -17.00%; 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%

NET

Software & Services industry group

-17.00%

Max
53.85%
Q3
17.90%
Median
6.59%
Q1
-9.59%
NET
-17.00%
Min
-50.52%
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IBM (IBM) vs. Cloudflare (NET): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Cloudflare (NET) reports a negative net margin of -8.75%, usually indicating a net loss over the period. Meanwhile IBM (IBM) reports 15.99%, ranking against industry peers normally.

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%

NET

Software & Services industry group

-8.75%

Max
41.17%
Q3
15.28%
Median
4.63%
Q1
-5.42%
NET
-8.75%
Min
-33.17%
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IBM (IBM) vs. Cloudflare (NET): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Cloudflare (NET) reports a negative operating margin of -7.27%, 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%

NET

Software & Services industry group

-7.27%

Max
46.89%
Q3
17.64%
Median
8.73%
Q1
-2.13%
NET
-7.27%
Min
-30.45%
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IBM (IBM) vs. Cloudflare (NET): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for IBM (IBM) and Cloudflare (NET)
MetricIBMNET
ROE (TTM)34.77%-17.00%
ROA (TTM)5.33%-2.00%
Net Margin (TTM)15.99%-8.75%
Operating Margin (TTM)16.97%-7.27%
Gross Margin (TTM)57.97%71.90%

Growth

Revenue Growth

Cloudflare (NET) at 29.85% sits in the top revenue growth quartile, while IBM (IBM) at 7.62% is closer to the peer norm — faster top-line expansion for NET.

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IBM (IBM) vs. Cloudflare (NET): 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; Cloudflare (NET) has no EPS growth figure this period.

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

Growth Metrics

Growth metrics for IBM (IBM) and Cloudflare (NET)
MetricIBMNET
Revenue Growth (YoY)7.62%29.85%
Revenue Growth (3Y CAGR)3.72%30.51%
EPS Growth (YoY)73.72%--
EPS Growth (3Y CAGR)83.76%--

Financial Strength

Current Ratio (MRQ)

Cloudflare (NET) at 3.80 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

NET

Software & Services industry group

3.80

Max
5.11
NET
3.80
Q3
2.77
Median
1.67
Q1
1.01
Min
0.03
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IBM (IBM) vs. Cloudflare (NET): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both balance sheets lean debt-heavy versus peers, but NET is more stretched: IBM (IBM) at 1.85 sits in the higher-leverage quartile and Cloudflare (NET) at 3.21 is above its industry benchmark range.

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

NET

Software & Services industry group

3.21

NET
3.21
Max
2.52
Q3
1.13
Median
0.40
Q1
0.07
Min
0.00
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IBM (IBM) vs. Cloudflare (NET): 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 Cloudflare (NET)
MetricIBMNET
Current Ratio (MRQ)0.863.80
Debt / Equity (MRQ)1.853.21
Net Debt / EBITDA3.37--

Dividends

Dividend Yield (TTM)

Cloudflare (NET) 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%

NET

Software & Services industry group

0.00%

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

Dividend Payout Ratio (TTM)

Cloudflare (NET) 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%

NET

Software & Services industry group

0.00%

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

Dividend Metrics

Dividend metrics for IBM (IBM) and Cloudflare (NET)
MetricIBMNET
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 Cloudflare (NET) 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

NET

Software & Services industry group

--

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69
NET
--
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IBM (IBM) vs. Cloudflare (NET): NET 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 Cloudflare (NET) at 35.24 clears its benchmark range — NET 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

NET

Software & Services industry group

35.24

NET
35.24
Max
17.91
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
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IBM (IBM) vs. Cloudflare (NET): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

IBM (IBM) at 6.52 sits near its industry’s typical P/B ratio, while Cloudflare (NET) at 65.73 prices above its benchmark range — NET looks rich relative to book.

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

NET

Software & Services industry group

65.73

NET
65.73
Max
16.63
Q3
8.50
Median
4.30
Q1
1.92
Min
-3.90
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IBM (IBM) vs. Cloudflare (NET): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for IBM (IBM) and Cloudflare (NET)
MetricIBMNET
P/E Ratio (TTM)20.90--
P/S Ratio (TTM)3.3135.24
P/B Ratio (MRQ)6.5265.73
Free Cash Flow Yield (TTM)5.34%0.83%