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IBM (IBM) vs. Oracle (ORCL)

This page compares IBM (IBM) with Oracle (ORCL) using performance and risk, profitability, financial strength, growth, dividends, and valuation metrics.

Company Profile

IBM (IBM) and Oracle (ORCL) both fall under the Software & Services industry group, but IBM is classified in IT Services while ORCL is classified in Software.

SymbolIBMORCL
NameInternational Business Machines CorporationOracle Corporation
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustryIT ServicesSoftware
GICS Sub-IndustryIT Consulting & Other ServicesSystems Software
Market Capitalization260.81 billion USD591.92 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962March 12, 1986
Security TypeCommon StockCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Both IBM (IBM) at 24.58 and Oracle (ORCL) at 36.88 post Price-to-Earnings Ratio (TTM) near the typical industry midpoint — neither company stands out strongly from peers on trailing earnings multiple.

IBM

Software & Services industry group

24.58

Max
108.25
Q3
55.55
Median
31.70
Q1
15.92
Min
0.36

ORCL

Software & Services industry group

36.88

Max
108.25
Q3
55.55
Median
31.70
Q1
15.92
Min
0.36
IBM (IBM) vs. Oracle (ORCL): A comparison of their Price-to-Earnings Ratio (TTM) against the Software & Services industry group benchmark.

Price-to-Sales Ratio (TTM)

IBM (IBM) at 3.78 is priced about in line with its industry on Price-to-Sales Ratio (TTM), while Oracle (ORCL) at 9.24 sits in the pricier quartile — ORCL costs more per dollar of sales.

IBM

Software & Services industry group

3.78

Max
18.52
Q3
9.02
Median
4.01
Q1
2.11
Min
0.02

ORCL

Software & Services industry group

9.24

Max
18.52
Q3
9.02
Median
4.01
Q1
2.11
Min
0.02
IBM (IBM) vs. Oracle (ORCL): A comparison of their Price-to-Sales Ratio (TTM) against the Software & Services industry group benchmark.

Price-to-Book Ratio (MRQ)

IBM (IBM) at 7.91 sits near its industry’s typical Price-to-Book Ratio (MRQ), while Oracle (ORCL) at 17.64 prices above its benchmark range — ORCL looks rich relative to book.

IBM

Software & Services industry group

7.91

Max
17.39
Q3
8.16
Median
4.00
Q1
1.95
Min
-6.56

ORCL

Software & Services industry group

17.64

Max
17.39
Q3
8.16
Median
4.00
Q1
1.95
Min
-6.56
IBM (IBM) vs. Oracle (ORCL): A comparison of their Price-to-Book Ratio (MRQ) against the Software & Services industry group benchmark.

Valuation at a Glance

SymbolIBMORCL
Price-to-Earnings Ratio (TTM)24.5836.88
Price-to-Sales Ratio (TTM)3.789.24
Price-to-Book Ratio (MRQ)7.9117.64
Free Cash Flow Yield5.02%-3.77%

Profitability

Return on Equity (TTM)

Both IBM (IBM) at 35.77% and Oracle (ORCL) at 57.57% rank in the top quartile for Return on Equity (TTM) among industry peers, indicating strong returns on shareholders’ equity.

IBM

Software & Services industry group

35.77%

Max
58.77%
Q3
16.77%
Median
5.20%
Q1
-16.00%
Min
-63.05%

ORCL

Software & Services industry group

57.57%

Max
58.77%
Q3
16.77%
Median
5.20%
Q1
-16.00%
Min
-63.05%
IBM (IBM) vs. Oracle (ORCL): A comparison of their Return on Equity (TTM) against the Software & Services industry group benchmark.

Net Profit Margin (TTM)

For every dollar of sales, both IBM (IBM) at 15.61% and Oracle (ORCL) at 25.30% retain more as net profit than most peers, landing in the top Net Profit Margin (TTM) quartile of their industries.

IBM

Software & Services industry group

15.61%

Max
44.20%
Q3
15.06%
Median
3.32%
Q1
-6.49%
Min
-34.99%

ORCL

Software & Services industry group

25.30%

Max
44.20%
Q3
15.06%
Median
3.32%
Q1
-6.49%
Min
-34.99%
IBM (IBM) vs. Oracle (ORCL): A comparison of their Net Profit Margin (TTM) against the Software & Services industry group benchmark.

Operating Profit Margin (TTM)

Oracle (ORCL) at 32.68% operates in the top Operating Profit Margin (TTM) quartile, ahead of IBM (IBM) at 13.81%, which runs around its industry’s norm.

IBM

Software & Services industry group

13.81%

Max
60.45%
Q3
16.49%
Median
4.46%
Q1
-12.92%
Min
-54.21%

ORCL

Software & Services industry group

32.68%

Max
60.45%
Q3
16.49%
Median
4.46%
Q1
-12.92%
Min
-54.21%
IBM (IBM) vs. Oracle (ORCL): A comparison of their Operating Profit Margin (TTM) against the Software & Services industry group benchmark.

Profitability at a Glance

SymbolIBMORCL
Return on Equity (TTM)35.77%57.57%
Return on Assets (TTM)5.37%6.34%
Net Profit Margin (TTM)15.61%25.30%
Operating Profit Margin (TTM)13.81%32.68%
Gross Profit Margin (TTM)58.36%67.08%

Growth

Revenue Growth

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

Revenue Growth at a Glance

SymbolIBMORCL
1-Year Revenue Growth7.62%8.38%
3-Year Revenue CAGR3.72%10.59%

EPS Growth

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

EPS Growth at a Glance

SymbolIBMORCL
1-Year EPS Growth73.72%16.98%
3-Year EPS CAGR83.76%21.66%

Financial Strength

Current Ratio (MRQ)

Oracle (ORCL) at 1.35 keeps Current Ratio (MRQ) within its industry mid-range, while IBM (IBM) at 0.80 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for IBM.

IBM

Software & Services industry group

0.80

Max
5.55
Q3
2.88
Median
1.73
Q1
1.07
Min
0.03

ORCL

Software & Services industry group

1.35

Max
5.55
Q3
2.88
Median
1.73
Q1
1.07
Min
0.03
IBM (IBM) vs. Oracle (ORCL): A comparison of their Current Ratio (MRQ) against the Software & Services industry group benchmark.

Debt-to-Equity Ratio (MRQ)

IBM (IBM) at 2.11 sits in the higher-leverage quartile relative to peers, but Oracle (ORCL) at 4.15 is higher still, above its industry benchmark range.

IBM

Software & Services industry group

2.11

Max
2.31
Q3
1.06
Median
0.32
Q1
0.06
Min
0.00

ORCL

Software & Services industry group

4.15

Max
2.31
Q3
1.06
Median
0.32
Q1
0.06
Min
0.00
IBM (IBM) vs. Oracle (ORCL): A comparison of their Debt-to-Equity Ratio (MRQ) against the Software & Services industry group benchmark.

Financial Strength at a Glance

SymbolIBMORCL
Current Ratio (MRQ)0.801.35
Debt-to-Equity Ratio (MRQ)2.114.15
Net Debt / EBITDA3.494.48

Dividends

Dividend Yield (TTM)

Both IBM (IBM) at 2.44% and Oracle (ORCL) at 0.97% report Dividend Yield (TTM) near their industry mid-ranges, so neither company stands out strongly from peers on cash yield relative to share price.

IBM

Software & Services industry group

2.44%

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

ORCL

Software & Services industry group

0.97%

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
IBM (IBM) vs. Oracle (ORCL): A comparison of their Dividend Yield (TTM) against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both IBM (IBM) at 59.47% and Oracle (ORCL) at 35.91% post Dividend Payout Ratio (TTM) outside their industries’ typical mid-range — either leaning toward more retention or more distribution than the industry median.

IBM

Software & Services industry group

59.47%

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

ORCL

Software & Services industry group

35.91%

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
IBM (IBM) vs. Oracle (ORCL): A comparison of their Dividend Payout Ratio (TTM) against the Software & Services industry group benchmark.

Dividends at a Glance

SymbolIBMORCL
Dividend Yield (TTM)2.44%0.97%
Dividend Payout Ratio (TTM)59.47%35.91%

Performance & Risk

Oracle (ORCL) has an aggressive beta of 1.67, indicating higher sensitivity to broad-market moves, while IBM (IBM) is defensive at 0.68 and tends to be less market-sensitive — they sit on opposite ends of the beta spectrum.

IBM
ORCL
Loading price history…
IBM (IBM) vs. Oracle (ORCL): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Performance & Risk at a Glance

SymbolIBMORCL
1-Year Return7.12%22.94%
1-Year Volatility39.59%65.49%
Beta0.681.67
3-Month Avg. Volume7.79M27.23M