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

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

Company Profile

SymbolIBMNET
Company NameInternational Business Machines CorporationCloudflare, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryIT ServicesIT Services
Market Capitalization269.64 billion USD76.67 billion USD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962September 13, 2019
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolIBMNET
5-Day Price Return0.96%-2.03%
13-Week Price Return-0.23%13.70%
26-Week Price Return18.88%104.86%
52-Week Price Return27.45%173.33%
Month-to-Date Return2.59%2.52%
Year-to-Date Return31.67%104.31%
10-Day Avg. Volume6.04M2.15M
3-Month Avg. Volume4.74M2.85M
3-Month Volatility26.64%36.03%
Beta0.671.94

Profitability

Return on Equity (TTM)

IBM

21.99%

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 21.99% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

NET

-10.00%

IT Services Industry

Max
32.78%
Q3
19.28%
Median
13.86%
Q1
5.50%
Min
-10.00%

NET has a negative Return on Equity of -10.00%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

IBM vs. NET: A comparison of their Return on Equity (TTM) against the IT Services industry benchmark.

Net Profit Margin (TTM)

IBM

9.11%

IT Services Industry

Max
19.71%
Q3
11.01%
Median
6.66%
Q1
2.96%
Min
-6.22%

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.

NET

-6.22%

IT Services Industry

Max
19.71%
Q3
11.01%
Median
6.66%
Q1
2.96%
Min
-6.22%

NET has a negative Net Profit Margin of -6.22%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

IBM vs. NET: A comparison of their Net Profit Margin (TTM) against the IT Services industry benchmark.

Operating Profit Margin (TTM)

IBM

9.77%

IT Services Industry

Max
22.44%
Q3
14.90%
Median
8.82%
Q1
4.91%
Min
-9.89%

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.

NET

-9.89%

IT Services Industry

Max
22.44%
Q3
14.90%
Median
8.82%
Q1
4.91%
Min
-9.89%

NET has a negative Operating Profit Margin of -9.89%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

IBM vs. NET: A comparison of their Operating Profit Margin (TTM) against the IT Services industry benchmark.

Profitability at a Glance

SymbolIBMNET
Return on Equity (TTM)21.99%-10.00%
Return on Assets (TTM)4.12%-2.99%
Net Profit Margin (TTM)9.11%-6.22%
Operating Profit Margin (TTM)9.77%-9.89%
Gross Profit Margin (TTM)57.57%76.14%

Financial Strength

Current Ratio (MRQ)

IBM

0.91

IT Services Industry

Max
3.17
Q3
2.00
Median
1.47
Q1
1.05
Min
0.52

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.

NET

5.14

IT Services Industry

Max
3.17
Q3
2.00
Median
1.47
Q1
1.05
Min
0.52

NET’s Current Ratio of 5.14 is exceptionally high, placing it well outside the typical range for the IT Services industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

IBM vs. NET: A comparison of their Current Ratio (MRQ) against the IT Services industry benchmark.

Debt-to-Equity Ratio (MRQ)

IBM

2.33

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 2.33. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

NET

2.63

IT Services Industry

Max
3.11
Q3
1.55
Median
0.55
Q1
0.17
Min
0.00

NET’s leverage is in the upper quartile of the IT Services industry, with a Debt-to-Equity Ratio of 2.63. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

IBM vs. NET: A comparison of their Debt-to-Equity Ratio (MRQ) against the IT Services industry benchmark.

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.

NET

-4.24

IT Services Industry

Max
129.00
Q3
56.00
Median
11.69
Q1
0.77
Min
-28.15

NET has a negative Interest Coverage Ratio of -4.24. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

IBM vs. NET: A comparison of their Interest Coverage Ratio (TTM) against the IT Services industry benchmark.

Financial Strength at a Glance

SymbolIBMNET
Current Ratio (MRQ)0.915.14
Quick Ratio (MRQ)0.805.01
Debt-to-Equity Ratio (MRQ)2.332.63
Interest Coverage Ratio (TTM)45.57-4.24

Growth

Revenue Growth

IBM vs. NET: 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. NET: 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

2.29%

IT Services Industry

Max
2.79%
Q3
1.76%
Median
0.58%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.29%, IBM offers a more attractive income stream than most of its peers in the IT Services industry, signaling a strong commitment to shareholder returns.

NET

0.00%

IT Services Industry

Max
2.79%
Q3
1.76%
Median
0.58%
Q1
0.00%
Min
0.00%

NET currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

IBM vs. NET: A comparison of their Dividend Yield (TTM) against the IT Services industry benchmark.

Dividend Payout Ratio (TTM)

IBM

75.57%

IT Services Industry

Max
107.85%
Q3
52.62%
Median
22.53%
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.

NET

0.00%

IT Services Industry

Max
107.85%
Q3
52.62%
Median
22.53%
Q1
0.00%
Min
0.00%

NET 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.

IBM vs. NET: A comparison of their Dividend Payout Ratio (TTM) against the IT Services industry benchmark.

Dividend at a Glance

SymbolIBMNET
Dividend Yield (TTM)2.29%0.00%
Dividend Payout Ratio (TTM)75.57%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

IBM

46.43

IT Services Industry

Max
56.41
Q3
33.17
Median
23.17
Q1
16.18
Min
6.62

A P/E Ratio of 46.43 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.

NET

--

IT Services Industry

Max
56.41
Q3
33.17
Median
23.17
Q1
16.18
Min
6.62

P/E Ratio data for NET is currently unavailable.

IBM vs. NET: A comparison of their Price-to-Earnings Ratio (TTM) against the IT Services industry benchmark.

Price-to-Sales Ratio (TTM)

IBM

4.23

IT Services Industry

Max
5.99
Q3
4.26
Median
1.93
Q1
0.97
Min
0.12

IBM’s P/S Ratio of 4.23 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.

NET

40.81

IT Services Industry

Max
5.99
Q3
4.26
Median
1.93
Q1
0.97
Min
0.12

With a P/S Ratio of 40.81, NET trades at a valuation that eclipses even the highest in the IT Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

IBM vs. NET: A comparison of their Price-to-Sales Ratio (TTM) against the IT Services industry benchmark.

Price-to-Book Ratio (MRQ)

IBM

9.96

IT Services Industry

Max
12.34
Q3
7.54
Median
3.84
Q1
2.52
Min
0.88

IBM’s P/B Ratio of 9.96 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.

NET

54.75

IT Services Industry

Max
12.34
Q3
7.54
Median
3.84
Q1
2.52
Min
0.88

At 54.75, NET’s P/B Ratio is at an extreme premium to the IT 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. NET: A comparison of their Price-to-Book Ratio (MRQ) against the IT Services industry benchmark.

Valuation at a Glance

SymbolIBMNET
Price-to-Earnings Ratio (TTM)46.43--
Price-to-Sales Ratio (TTM)4.2340.81
Price-to-Book Ratio (MRQ)9.9654.75
Price-to-Free Cash Flow Ratio (TTM)23.04428.46