IBM vs. ORCL: IBM vs. Oracle Stock Comparison

July 2, 2026

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 Item	IBM	ORCL
Name	International Business Machines Corporation	Oracle Corporation
Country/Region	United States	United States
GICS Sector	Information Technology	Information Technology
GICS Industry Group	Software & Services	Software & Services
GICS Industry	IT Services	Software
GICS Sub-Industry	IT Consulting & Other Services	Systems Software
Market Capitalization	264.31 billion USD	422.13 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	January 2, 1962	March 12, 1986
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

IBM

ORCL

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

Trailing Returns

Loading price history…

Trailing total returns for IBM (IBM) and Oracle (ORCL). Returns over one year are annualized.

Performance Metrics

Price performance metrics for IBM (IBM) and Oracle (ORCL)
Metric	IBM	ORCL
Total Return (1Y)	-2.16%	-32.30%

Risk Profile

Drawdown History

IBM

ORCL

IBM (IBM) vs. Oracle (ORCL): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Oracle (ORCL) has an aggressive beta of 1.72, 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.

Risk Metrics

Risk profile metrics for IBM (IBM) and Oracle (ORCL)
Metric	IBM	ORCL
Volatility (1Y, Annualized)	40.54%	64.81%
Beta (5Y)	0.68	1.72
Avg. Volume (3M)	8.55M	27.77M

Risk-Adjusted Performance

Risk-Return Positioning

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.

Profitability

ROE (TTM)

Both IBM (IBM) at 35.77% 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

35.77%

Max: 53.38%
IBM: 35.77%
Q3: 16.53%
Median: 5.38%
Q1: -13.43%
Min: -55.27%

ORCL

Software & Services industry group

53.38%

ORCL: 53.38%
Max: 53.38%
Q3: 16.53%
Median: 5.38%
Q1: -13.43%
Min: -55.27%

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 15.61% 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

15.61%

Max: 44.20%
IBM: 15.61%
Q3: 14.93%
Median: 3.32%
Q1: -5.99%
Min: -34.99%

ORCL

Software & Services industry group

25.37%

Max: 44.20%
ORCL: 25.37%
Q3: 14.93%
Median: 3.32%
Q1: -5.99%
Min: -34.99%

IBM (IBM) vs. Oracle (ORCL): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Oracle (ORCL) at 36.20% operates in the top operating margin 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%
IBM: 13.81%
Median: 4.46%
Q1: -12.92%
Min: -53.94%

ORCL

Software & Services industry group

36.20%

Max: 60.45%
ORCL: 36.20%
Q3: 16.49%
Median: 4.46%
Q1: -12.92%
Min: -53.94%

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)
Metric	IBM	ORCL
ROE (TTM)	35.77%	53.38%
ROA (TTM)	5.37%	6.51%
Net Margin (TTM)	15.61%	25.37%
Operating Margin (TTM)	13.81%	36.20%
Gross Margin (TTM)	58.36%	65.82%

Growth

Revenue Growth

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

Revenue Growth Metrics

Revenue growth metrics for IBM (IBM) and Oracle (ORCL)
Metric	IBM	ORCL
Revenue Growth (YoY)	7.62%	17.35%
Revenue Growth (3Y CAGR)	3.72%	10.48%

EPS Growth

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

EPS Growth Metrics

EPS growth metrics for IBM (IBM) and Oracle (ORCL)
Metric	IBM	ORCL
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 0.80 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: 1.72
Q1: 1.07
IBM: 0.80
Min: 0.03

ORCL

Software & Services industry group

1.12

Max: 5.55
Q3: 2.88
Median: 1.72
ORCL: 1.12
Q1: 1.07
Min: 0.03

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 2.11 sits in the higher-leverage quartile and Oracle (ORCL) at 3.89 is above its industry benchmark range.

IBM

Software & Services industry group

2.11

Max: 2.31
IBM: 2.11
Q3: 1.06
Median: 0.32
Q1: 0.06
Min: 0.00

ORCL

Software & Services industry group

3.89

ORCL: 3.89
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 against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for IBM (IBM) and Oracle (ORCL)
Metric	IBM	ORCL
Current Ratio (MRQ)	0.80	1.12
Debt / Equity (MRQ)	2.11	3.89
Net Debt / EBITDA	3.49	4.44

Dividends

Dividend Yield (TTM)

Both IBM (IBM) at 2.42% and Oracle (ORCL) at 1.35% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

IBM

Software & Services industry group

2.42%

IBM: 2.42%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

ORCL

Software & Services industry group

1.35%

ORCL: 1.35%
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 against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both IBM (IBM) at 59.47% 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

59.47%

IBM: 59.47%
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%

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)
Metric	IBM	ORCL
Dividend Yield (TTM)	2.42%	1.35%
Dividend Payout Ratio (TTM)	59.47%	34.31%

Valuation

P/E Ratio (TTM)

Both IBM (IBM) at 24.89 and Oracle (ORCL) at 25.14 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

24.89

Max: 126.50
Q3: 60.82
Median: 30.49
IBM: 24.89
Q1: 16.22
Min: 0.41

ORCL

Software & Services industry group

25.14

Max: 126.50
Q3: 60.82
Median: 30.49
ORCL: 25.14
Q1: 16.22
Min: 0.41

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 3.84 and Oracle (ORCL) at 6.27 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

IBM

Software & Services industry group

3.84

Max: 18.72
Q3: 8.93
Median: 4.21
IBM: 3.84
Q1: 2.14
Min: 0.02

ORCL

Software & Services industry group

6.27

Max: 18.72
Q3: 8.93
ORCL: 6.27
Median: 4.21
Q1: 2.14
Min: 0.02

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 8.02 is valued about in line with its industry on P/B ratio, while Oracle (ORCL) at 11.24 carries an above-peer premium to book — ORCL is pricier on assets.

IBM

Software & Services industry group

8.02

Max: 18.46
Q3: 8.62
IBM: 8.02
Median: 4.00
Q1: 1.94
Min: -7.57

ORCL

Software & Services industry group

11.24

Max: 18.46
ORCL: 11.24
Q3: 8.62
Median: 4.00
Q1: 1.94
Min: -7.57

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)
Metric	IBM	ORCL
P/E Ratio (TTM)	24.89	25.14
P/S Ratio (TTM)	3.84	6.27
P/B Ratio (MRQ)	8.02	11.24
Free Cash Flow Yield (TTM)	4.95%	-5.81%