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IBM vs. ORCL: IBM vs. Oracle Stock Comparison

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

Company profile comparison for IBM (IBM) and Oracle (ORCL)
Profile ItemIBMORCL
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 Capitalization220.76 billion USD433.57 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962March 12, 1986
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

IBM
ORCL
GSPC
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IBM (IBM) vs. Oracle (ORCL), 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 Oracle (ORCL). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for IBM (IBM) and Oracle (ORCL)
MetricIBMORCL
Total Return (1Y)1.39%-37.85%
Total Return (3Y, Annualized)21.89%10.50%
Total Return (5Y, Annualized)15.69%12.24%

Risk Profile

Drawdown History

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

Risk Metrics

Risk profile metrics for IBM (IBM) and Oracle (ORCL)
MetricIBMORCL
Volatility (1Y, Annualized)48.21%67.40%
Beta (5Y)0.711.75
Max Drawdown (5Y)-37.50%-64.58%
Avg. Volume (3M)11.11M31.75M

Risk-Adjusted Performance

Risk-Return Positioning

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IBM and ORCL 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 Oracle (ORCL)
MetricIBMORCL
Sharpe Ratio (1Y)-0.05-0.62
Sortino Ratio (1Y)-0.07-1.03

Profitability

ROE (TTM)

Both IBM (IBM) at 34.46% and Oracle (ORCL) at 53.38% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

IBM

Software & Services industry group

34.46%

Max
62.27%
IBM
34.46%
Q3
16.91%
Median
5.27%
Q1
-13.73%
Min
-54.87%

ORCL

Software & Services industry group

53.38%

Max
62.27%
ORCL
53.38%
Q3
16.91%
Median
5.27%
Q1
-13.73%
Min
-54.87%
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IBM (IBM) vs. Oracle (ORCL): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both IBM (IBM) at 15.52% and Oracle (ORCL) at 25.37% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

IBM

Software & Services industry group

15.52%

Max
41.99%
IBM
15.52%
Q3
15.18%
Median
3.79%
Q1
-5.84%
Min
-30.39%

ORCL

Software & Services industry group

25.37%

Max
41.99%
ORCL
25.37%
Q3
15.18%
Median
3.79%
Q1
-5.84%
Min
-30.39%
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IBM (IBM) vs. Oracle (ORCL): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both IBM (IBM) at 16.55% and Oracle (ORCL) at 36.20% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

IBM

Software & Services industry group

16.55%

Max
47.12%
IBM
16.55%
Q3
15.23%
Median
4.59%
Q1
-6.33%
Min
-32.77%

ORCL

Software & Services industry group

36.20%

Max
47.12%
ORCL
36.20%
Q3
15.23%
Median
4.59%
Q1
-6.33%
Min
-32.77%
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IBM (IBM) vs. Oracle (ORCL): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for IBM (IBM) and Oracle (ORCL)
MetricIBMORCL
ROE (TTM)34.46%53.38%
ROA (TTM)5.30%6.51%
Net Margin (TTM)15.52%25.37%
Operating Margin (TTM)16.55%36.20%
Gross Margin (TTM)58.10%65.82%

Growth

Revenue Growth

Both IBM (IBM) at 7.62% and Oracle (ORCL) at 17.35% 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. Oracle (ORCL): A comparison of their Revenue Growth across different time periods.

EPS Growth

IBM (IBM) at 73.72% sits in the top EPS growth quartile, while Oracle (ORCL) at 34.33% is closer to the peer norm — faster per-share earnings growth for IBM.

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

Growth Metrics

Growth metrics for IBM (IBM) and Oracle (ORCL)
MetricIBMORCL
Revenue Growth (YoY)7.62%17.35%
Revenue Growth (3Y CAGR)3.72%10.48%
EPS Growth (YoY)73.72%34.33%
EPS Growth (3Y CAGR)83.76%23.84%

Financial Strength

Current Ratio (MRQ)

Oracle (ORCL) at 1.12 keeps current ratio within its industry’s typical mid-range, while IBM (IBM) at 0.79 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for IBM.

IBM

Software & Services industry group

0.79

Max
5.39
Q3
2.79
Median
1.63
Q1
1.03
IBM
0.79
Min
0.03

ORCL

Software & Services industry group

1.12

Max
5.39
Q3
2.79
Median
1.63
ORCL
1.12
Q1
1.03
Min
0.03
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IBM (IBM) vs. Oracle (ORCL): 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 ORCL is more stretched: IBM (IBM) at 1.89 sits in the higher-leverage quartile and Oracle (ORCL) at 3.89 is above its industry benchmark range.

IBM

Software & Services industry group

1.89

Max
2.42
IBM
1.89
Q3
1.07
Median
0.33
Q1
0.06
Min
0.00

ORCL

Software & Services industry group

3.89

ORCL
3.89
Max
2.42
Q3
1.07
Median
0.33
Q1
0.06
Min
0.00
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IBM (IBM) vs. Oracle (ORCL): 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 Oracle (ORCL)
MetricIBMORCL
Current Ratio (MRQ)0.791.12
Debt / Equity (MRQ)1.893.89
Net Debt / EBITDA3.474.44

Dividends

Dividend Yield (TTM)

Both IBM (IBM) at 2.84% and Oracle (ORCL) at 1.28% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

IBM

Software & Services industry group

2.84%

IBM
2.84%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

ORCL

Software & Services industry group

1.28%

ORCL
1.28%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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IBM (IBM) vs. Oracle (ORCL): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both IBM (IBM) at 59.77% and Oracle (ORCL) at 34.31% pay out more of their earnings than any of their industry peers — the thinnest cover in their groups, so dividend headroom deserves attention.

IBM

Software & Services industry group

59.77%

IBM
59.77%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

ORCL

Software & Services industry group

34.31%

ORCL
34.31%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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IBM (IBM) vs. Oracle (ORCL): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for IBM (IBM) and Oracle (ORCL)
MetricIBMORCL
Dividend Yield (TTM)2.84%1.28%
Dividend Payout Ratio (TTM)59.77%34.31%

Valuation

P/E Ratio (TTM)

Both IBM (IBM) at 21.05 and Oracle (ORCL) at 25.82 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

IBM

Software & Services industry group

21.05

Max
107.17
Q3
61.33
Median
34.31
IBM
21.05
Q1
16.59
Min
0.39

ORCL

Software & Services industry group

25.82

Max
107.17
Q3
61.33
Median
34.31
ORCL
25.82
Q1
16.59
Min
0.39
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IBM (IBM) vs. Oracle (ORCL): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both IBM (IBM) at 3.20 and Oracle (ORCL) at 6.44 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

IBM

Software & Services industry group

3.20

Max
21.27
Q3
10.17
Median
4.61
IBM
3.20
Q1
2.41
Min
0.02

ORCL

Software & Services industry group

6.44

Max
21.27
Q3
10.17
ORCL
6.44
Median
4.61
Q1
2.41
Min
0.02
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IBM (IBM) vs. Oracle (ORCL): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

IBM (IBM) at 6.41 is valued about in line with its industry on P/B ratio, while Oracle (ORCL) at 11.54 carries an above-peer premium to book — ORCL is pricier on assets.

IBM

Software & Services industry group

6.41

Max
21.34
Q3
9.85
IBM
6.41
Median
4.58
Q1
2.15
Min
-8.85

ORCL

Software & Services industry group

11.54

Max
21.34
ORCL
11.54
Q3
9.85
Median
4.58
Q1
2.15
Min
-8.85
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IBM (IBM) vs. Oracle (ORCL): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for IBM (IBM) and Oracle (ORCL)
MetricIBMORCL
P/E Ratio (TTM)21.0525.82
P/S Ratio (TTM)3.206.44
P/B Ratio (MRQ)6.4111.54
Free Cash Flow Yield (TTM)5.46%-5.66%