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IBM vs. OKTA: IBM vs. Okta Stock Comparison

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

Company profile comparison for IBM (IBM) and Okta (OKTA)
Profile ItemIBMOKTA
NameInternational Business Machines CorporationOkta 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 USD29.49 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateJanuary 2, 1962April 7, 2017
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

IBM
OKTA
GSPC
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IBM (IBM) vs. Okta (OKTA), 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 Okta (OKTA). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for IBM (IBM) and Okta (OKTA)
MetricIBMOKTA
Total Return (1Y)-16.98%108.64%
Total Return (3Y, Annualized)22.40%38.93%
Total Return (5Y, Annualized)19.64%-7.90%

Risk Profile

Drawdown History

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

Risk Metrics

Risk profile metrics for IBM (IBM) and Okta (OKTA)
MetricIBMOKTA
Volatility (1Y, Annualized)48.48%70.25%
Beta (5Y)0.790.76
Max Drawdown (5Y)-37.50%-83.22%
Avg. Volume (3M)5.30M4.23M

Risk-Adjusted Performance

Risk-Return Positioning

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IBM and OKTA 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 Okta (OKTA)
MetricIBMOKTA
Sharpe Ratio (1Y)-0.441.49
Sortino Ratio (1Y)-0.562.65

Profitability

ROE (TTM)

IBM (IBM) at 34.77% sits in the top ROE quartile, while Okta (OKTA) at 4.31% is closer to the peer norm — stronger capital efficiency for IBM.

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%

OKTA

Software & Services industry group

4.31%

Max
53.85%
Q3
17.90%
Median
6.59%
OKTA
4.31%
Q1
-9.59%
Min
-50.52%
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IBM (IBM) vs. Okta (OKTA): 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 Okta (OKTA) at 9.63%, 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%

OKTA

Software & Services industry group

9.63%

Max
41.17%
Q3
15.28%
OKTA
9.63%
Median
4.63%
Q1
-5.42%
Min
-33.17%
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IBM (IBM) vs. Okta (OKTA): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both IBM (IBM) at 16.97% and Okta (OKTA) at 13.29% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

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%

OKTA

Software & Services industry group

13.29%

Max
46.89%
Q3
17.64%
OKTA
13.29%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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IBM (IBM) vs. Okta (OKTA): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for IBM (IBM) and Okta (OKTA)
MetricIBMOKTA
ROE (TTM)34.77%4.31%
ROA (TTM)5.33%1.58%
Net Margin (TTM)15.99%9.63%
Operating Margin (TTM)16.97%13.29%
Gross Margin (TTM)57.97%78.13%

Growth

Revenue Growth

Both IBM (IBM) at 7.62% and Okta (OKTA) at 11.84% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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

EPS Growth

Both companies show strong earnings momentum, but Okta (OKTA) at 2,083.33% is the standout with EPS growth above its industry range; IBM (IBM) at 73.72% also sits in the top quartile.

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

Growth Metrics

Growth metrics for IBM (IBM) and Okta (OKTA)
MetricIBMOKTA
Revenue Growth (YoY)7.62%11.84%
Revenue Growth (3Y CAGR)3.72%16.25%
EPS Growth (YoY)73.72%2,083.33%
EPS Growth (3Y CAGR)83.76%--

Financial Strength

Current Ratio (MRQ)

Okta (OKTA) at 1.53 keeps current ratio within its industry’s typical mid-range, while IBM (IBM) at 0.86 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for IBM.

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

OKTA

Software & Services industry group

1.53

Max
5.11
Q3
2.77
Median
1.67
OKTA
1.53
Q1
1.01
Min
0.03
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IBM (IBM) vs. Okta (OKTA): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Okta (OKTA) at 0.01 keeps leverage in the lower quartile, while IBM (IBM) at 1.85 sits in the higher-leverage quartile.

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

OKTA

Software & Services industry group

0.01

Max
2.52
Q3
1.13
Median
0.40
Q1
0.07
OKTA
0.01
Min
0.00
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IBM (IBM) vs. Okta (OKTA): 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 Okta (OKTA)
MetricIBMOKTA
Current Ratio (MRQ)0.861.53
Debt / Equity (MRQ)1.850.01
Net Debt / EBITDA3.37-7.00

Dividends

Dividend Yield (TTM)

Okta (OKTA) 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%

OKTA

Software & Services industry group

0.00%

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

Dividend Payout Ratio (TTM)

Okta (OKTA) 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%

OKTA

Software & Services industry group

0.00%

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

Dividend Metrics

Dividend metrics for IBM (IBM) and Okta (OKTA)
MetricIBMOKTA
Dividend Yield (TTM)2.73%0.00%
Dividend Payout Ratio (TTM)57.51%0.00%

Valuation

P/E Ratio (TTM)

IBM (IBM) at 20.90 is near its industry’s usual P/E ratio, while Okta (OKTA) at 101.62 sits in the richer quartile — OKTA needs stronger growth or earnings quality to justify the premium.

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

OKTA

Software & Services industry group

101.62

Max
112.94
OKTA
101.62
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69
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IBM (IBM) vs. Okta (OKTA): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

IBM (IBM) at 3.31 is priced about in line with its industry on P/S ratio, while Okta (OKTA) at 9.60 sits in the pricier quartile — OKTA costs more per dollar of 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

OKTA

Software & Services industry group

9.60

Max
17.91
OKTA
9.60
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
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IBM (IBM) vs. Okta (OKTA): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both IBM (IBM) at 6.52 and Okta (OKTA) at 4.23 are valued close to their industries’ norm against book — neither stands out from peers.

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

OKTA

Software & Services industry group

4.23

Max
16.63
Q3
8.50
Median
4.30
OKTA
4.23
Q1
1.92
Min
-3.90
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IBM (IBM) vs. Okta (OKTA): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for IBM (IBM) and Okta (OKTA)
MetricIBMOKTA
P/E Ratio (TTM)20.90101.62
P/S Ratio (TTM)3.319.60
P/B Ratio (MRQ)6.524.23
Free Cash Flow Yield (TTM)5.34%3.52%