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IBM (IBM) vs. Palo Alto Networks (PANW)

This page compares IBM (IBM) with Palo Alto Networks (PANW) using historical performance, profitability, financial strength, growth, dividend, and valuation metrics.

Company Profile

IBM (IBM) and Palo Alto Networks (PANW) both fall under the Software & Services industry group, but IBM is classified in IT Services while PANW is classified in Software.

SymbolIBMPANW
Company NameInternational Business Machines CorporationPalo Alto Networks, Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustryIT ServicesSoftware
GICS Sub-IndustryIT Consulting & Other ServicesSystems Software
Market Capitalization208.96 billion USD194.75 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaqGS
Listing DateJanuary 2, 1962July 20, 2012
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolIBMPANW
5-Day Price Return3.58%14.82%
13-Week Price Return-13.93%48.28%
26-Week Price Return-29.13%14.32%
52-Week Price Return-17.17%28.28%
Month-to-Date Return-3.74%38.05%
Year-to-Date Return-24.94%34.39%
10-Day Avg. Volume6.35M9.06M
3-Month Avg. Volume6.10M9.69M
3-Month Volatility41.39%46.40%
Beta0.560.83

Profitability

Return on Equity (TTM)

IBM (IBM) at 35.53% ranks in the top quartile for Return on Equity (TTM), ahead of Palo Alto Networks (PANW) at 15.49%, which sits closer to the industry mid-range.

IBM

Software & Services industry group

35.53%

Max
62.31%
Q3
20.29%
Median
7.31%
Q1
-8.50%
Min
-50.67%

PANW

Software & Services industry group

15.49%

Max
62.31%
Q3
20.29%
Median
7.31%
Q1
-8.50%
Min
-50.67%
IBM (IBM) vs. Palo Alto Networks (PANW): A comparison of their Return on Equity (TTM) against the Software & Services industry group benchmark.

Net Profit Margin (TTM)

Both IBM (IBM) at 15.60% and Palo Alto Networks (PANW) at 12.96% post Net Profit Margin (TTM) near their industry mid-ranges, so neither company stands out strongly from peers on net profitability.

IBM

Software & Services industry group

15.60%

Max
44.20%
Q3
16.48%
Median
8.18%
Q1
-3.67%
Min
-28.43%

PANW

Software & Services industry group

12.96%

Max
44.20%
Q3
16.48%
Median
8.18%
Q1
-3.67%
Min
-28.43%
IBM (IBM) vs. Palo Alto Networks (PANW): A comparison of their Net Profit Margin (TTM) against the Software & Services industry group benchmark.

Operating Profit Margin (TTM)

Both IBM (IBM) at 15.32% and Palo Alto Networks (PANW) at 14.37% post Operating Profit Margin (TTM) near their industry mid-ranges, so neither company stands out strongly from peers on operating profitability.

IBM

Software & Services industry group

15.32%

Max
46.75%
Q3
17.04%
Median
6.53%
Q1
-4.60%
Min
-34.31%

PANW

Software & Services industry group

14.37%

Max
46.75%
Q3
17.04%
Median
6.53%
Q1
-4.60%
Min
-34.31%
IBM (IBM) vs. Palo Alto Networks (PANW): A comparison of their Operating Profit Margin (TTM) against the Software & Services industry group benchmark.

Profitability at a Glance

SymbolIBMPANW
Return on Equity (TTM)35.53%15.49%
Return on Assets (TTM)7.13%5.45%
Net Profit Margin (TTM)15.60%12.96%
Operating Profit Margin (TTM)15.32%14.37%
Gross Profit Margin (TTM)58.36%73.50%

Financial Strength

Current Ratio (MRQ)

Both IBM (IBM) at 0.80 and Palo Alto Networks (PANW) at 1.04 run Current Ratio (MRQ) in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

IBM

Software & Services industry group

0.80

Max
4.52
Q3
2.50
Median
1.64
Q1
1.13
Min
0.31

PANW

Software & Services industry group

1.04

Max
4.52
Q3
2.50
Median
1.64
Q1
1.13
Min
0.31
IBM (IBM) vs. Palo Alto Networks (PANW): A comparison of their Current Ratio (MRQ) against the Software & Services industry group benchmark.

Debt-to-Equity Ratio (MRQ)

Palo Alto Networks (PANW) at 0.00 carries Debt-to-Equity Ratio (MRQ) around its industry mid-range, while IBM (IBM) at 2.01 sits in the higher-leverage quartile.

IBM

Software & Services industry group

2.01

Max
2.69
Q3
1.27
Median
0.38
Q1
0.00
Min
0.00

PANW

Software & Services industry group

0.00

Max
2.69
Q3
1.27
Median
0.38
Q1
0.00
Min
0.00
IBM (IBM) vs. Palo Alto Networks (PANW): A comparison of their Debt-to-Equity Ratio (MRQ) against the Software & Services industry group benchmark.

Interest Coverage Ratio (TTM)

Palo Alto Networks (PANW) reports a problematic Interest Coverage Ratio (TTM) of -19.72; operating income or EBIT does not fully cover interest expense, so the ratio points to interest-payment strain. Meanwhile IBM (IBM) reports 45.57, ranking against industry peers normally.

IBM

Software & Services industry group

45.57

Max
45.58
Q3
11.44
Median
-0.40
Q1
-13.69
Min
-51.04

PANW

Software & Services industry group

-19.72

Max
45.58
Q3
11.44
Median
-0.40
Q1
-13.69
Min
-51.04
IBM (IBM) vs. Palo Alto Networks (PANW): A comparison of their Interest Coverage Ratio (TTM) against the Software & Services industry group benchmark.

Financial Strength at a Glance

SymbolIBMPANW
Current Ratio (MRQ)0.801.04
Quick Ratio (MRQ)0.680.97
Debt-to-Equity Ratio (MRQ)2.010.00
Interest Coverage Ratio (TTM)45.57-19.72

Growth

Revenue Growth

IBM (IBM) vs. Palo Alto Networks (PANW): A comparison of their Revenue Growth across different time periods.

Revenue Growth at a Glance

SymbolIBMPANW
Revenue Growth (MRQ vs Prior YoY)9.46%14.91%
Revenue Growth (TTM vs Prior YoY)9.67%15.43%
3-Year Revenue CAGR3.72%18.79%
5-Year Revenue CAGR4.12%22.03%

EPS Growth

IBM (IBM) vs. Palo Alto Networks (PANW): A comparison of their EPS Growth across different time periods.

EPS Growth at a Glance

SymbolIBMPANW
EPS Growth (MRQ vs Prior YoY)14.24%61.17%
EPS Growth (TTM vs Prior YoY)94.45%2.04%
3-Year EPS CAGR83.85%--
5-Year EPS CAGR12.36%--

Dividend

Dividend Yield (TTM)

Palo Alto Networks (PANW) pays no dividend (yield 0.00%) — often a deliberate choice to reinvest earnings rather than return cash. Meanwhile IBM (IBM) reports a yield of 2.99%, ranking against industry peers normally.

IBM

Software & Services industry group

2.99%

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

PANW

Software & Services industry group

0.00%

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

Dividend Payout Ratio (TTM)

Palo Alto Networks (PANW) 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 58.43%, ranking against industry peers normally.

IBM

Software & Services industry group

58.43%

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

PANW

Software & Services industry group

0.00%

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

Dividend at a Glance

SymbolIBMPANW
Dividend Yield (TTM)2.99%0.00%
Dividend Payout Ratio (TTM)58.43%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

IBM (IBM) at 19.53 hovers around the typical industry Price-to-Earnings Ratio (TTM), while Palo Alto Networks (PANW) at 155.37 sits above its industry benchmark range — an elevated trailing earnings multiple for PANW relative to peers.

IBM

Software & Services industry group

19.53

Max
112.36
Q3
62.61
Median
31.31
Q1
14.45
Min
0.35

PANW

Software & Services industry group

155.37

Max
112.36
Q3
62.61
Median
31.31
Q1
14.45
Min
0.35
IBM (IBM) vs. Palo Alto Networks (PANW): A comparison of their Price-to-Earnings Ratio (TTM) against the Software & Services industry group benchmark.

Price-to-Sales Ratio (TTM)

IBM (IBM) at 3.05 hovers around the typical industry Price-to-Sales Ratio (TTM), while Palo Alto Networks (PANW) at 20.13 sits above its industry benchmark range — an elevated trailing revenue multiple for PANW relative to peers.

IBM

Software & Services industry group

3.05

Max
17.16
Q3
8.26
Median
4.08
Q1
2.21
Min
0.12

PANW

Software & Services industry group

20.13

Max
17.16
Q3
8.26
Median
4.08
Q1
2.21
Min
0.12
IBM (IBM) vs. Palo Alto Networks (PANW): A comparison of their Price-to-Sales Ratio (TTM) against the Software & Services industry group benchmark.

Price-to-Book Ratio (MRQ)

IBM (IBM) at 6.91 carries typical industry Price-to-Book Ratio (MRQ), while Palo Alto Networks (PANW) at 13.02 sits in the higher-multiple quartile — PANW carries a higher book-value multiple relative to peers.

IBM

Software & Services industry group

6.91

Max
20.48
Q3
9.90
Median
4.69
Q1
2.39
Min
0.32

PANW

Software & Services industry group

13.02

Max
20.48
Q3
9.90
Median
4.69
Q1
2.39
Min
0.32
IBM (IBM) vs. Palo Alto Networks (PANW): A comparison of their Price-to-Book Ratio (MRQ) against the Software & Services industry group benchmark.

Valuation at a Glance

SymbolIBMPANW
Price-to-Earnings Ratio (TTM)19.53155.37
Price-to-Sales Ratio (TTM)3.0520.13
Price-to-Book Ratio (MRQ)6.9113.02
Price-to-Free Cash Flow Ratio (TTM)17.1355.85