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IBM vs. PLTR: IBM vs. Palantir Stock Comparison

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

IBM (IBM) has more than two decades of public-market history since January 2, 1962, whereas Palantir (PLTR) listed on September 30, 2020 and has a much shorter record to draw on.

Company profile comparison for IBM (IBM) and Palantir (PLTR)
Profile ItemIBMPLTR
NameInternational Business Machines CorporationPalantir Technologies Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustryIT ServicesSoftware
GICS Sub-IndustryIT Consulting & Other ServicesApplication Software
Market Capitalization220.76 billion USD418.23 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateJanuary 2, 1962September 30, 2020
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

IBM
PLTR
GSPC
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IBM (IBM) vs. Palantir (PLTR), 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 Palantir (PLTR). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for IBM (IBM) and Palantir (PLTR)
MetricIBMPLTR
Total Return (1Y)1.39%-3.86%
Total Return (3Y, Annualized)21.89%122.88%
Total Return (5Y, Annualized)15.69%47.53%

Risk Profile

Drawdown History

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

Risk Metrics

Risk profile metrics for IBM (IBM) and Palantir (PLTR)
MetricIBMPLTR
Volatility (1Y, Annualized)48.21%60.53%
Beta (5Y)0.711.64
Max Drawdown (5Y)-37.50%-79.14%
Avg. Volume (3M)11.11M42.99M

Risk-Adjusted Performance

Risk-Return Positioning

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IBM and PLTR 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 Palantir (PLTR)
MetricIBMPLTR
Sharpe Ratio (1Y)-0.05-0.13
Sortino Ratio (1Y)-0.07-0.20

Profitability

ROE (TTM)

Both IBM (IBM) at 34.46% and Palantir (PLTR) at 38.10% 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%

PLTR

Software & Services industry group

38.10%

Max
62.27%
PLTR
38.10%
Q3
16.91%
Median
5.27%
Q1
-13.73%
Min
-54.87%
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IBM (IBM) vs. Palantir (PLTR): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Palantir (PLTR) at 49.01% keeps the most of each sales dollar — above its industry’s net margin range — and IBM (IBM) at 15.52% also retains a top-quartile share.

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%

PLTR

Software & Services industry group

49.01%

PLTR
49.01%
Max
41.99%
Q3
15.18%
Median
3.79%
Q1
-5.84%
Min
-30.39%
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IBM (IBM) vs. Palantir (PLTR): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both IBM (IBM) at 16.55% and Palantir (PLTR) at 47.12% 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%

PLTR

Software & Services industry group

47.12%

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

Profitability Metrics

Profitability metrics for IBM (IBM) and Palantir (PLTR)
MetricIBMPLTR
ROE (TTM)34.46%38.10%
ROA (TTM)5.30%17.29%
Net Margin (TTM)15.52%49.01%
Operating Margin (TTM)16.55%47.12%
Gross Margin (TTM)58.10%84.80%

Growth

Revenue Growth

Palantir (PLTR) at 56.18% clears its industry range for revenue growth, far stronger top-line momentum than IBM (IBM) at 7.62%, which is closer to a typical peer reading.

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

EPS Growth

Both companies show strong earnings momentum, but Palantir (PLTR) at 231.06% 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. Palantir (PLTR): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for IBM (IBM) and Palantir (PLTR)
MetricIBMPLTR
Revenue Growth (YoY)7.62%56.18%
Revenue Growth (3Y CAGR)3.72%32.92%
EPS Growth (YoY)73.72%231.06%
EPS Growth (3Y CAGR)83.76%--

Financial Strength

Current Ratio (MRQ)

Palantir (PLTR) at 7.23 carries current ratio above its industry’s typical mid-range, while IBM (IBM) at 0.79 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.

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

PLTR

Software & Services industry group

7.23

PLTR
7.23
Max
5.39
Q3
2.79
Median
1.63
Q1
1.03
Min
0.03
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IBM (IBM) vs. Palantir (PLTR): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Palantir (PLTR) at 0.02 keeps leverage in the lower quartile, while IBM (IBM) at 1.89 sits in the higher-leverage quartile.

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

PLTR

Software & Services industry group

0.02

Max
2.42
Q3
1.07
Median
0.33
Q1
0.06
PLTR
0.02
Min
0.00
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IBM (IBM) vs. Palantir (PLTR): 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 Palantir (PLTR)
MetricIBMPLTR
Current Ratio (MRQ)0.797.23
Debt / Equity (MRQ)1.890.02
Net Debt / EBITDA3.47-3.45

Dividends

Dividend Yield (TTM)

Palantir (PLTR) 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 2.84%, ranking against industry peers normally.

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%

PLTR

Software & Services industry group

0.00%

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

Dividend Payout Ratio (TTM)

Palantir (PLTR) 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 59.77%, ranking against industry peers normally.

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%

PLTR

Software & Services industry group

0.00%

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

Dividend Metrics

Dividend metrics for IBM (IBM) and Palantir (PLTR)
MetricIBMPLTR
Dividend Yield (TTM)2.84%0.00%
Dividend Payout Ratio (TTM)59.77%0.00%

Valuation

P/E Ratio (TTM)

IBM (IBM) at 21.05 is near its industry’s usual P/E ratio, while Palantir (PLTR) at 148.75 sits above its peer range — an unusually expensive price for PLTR’s trailing earnings.

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

PLTR

Software & Services industry group

148.75

PLTR
148.75
Max
107.17
Q3
61.33
Median
34.31
Q1
16.59
Min
0.39
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IBM (IBM) vs. Palantir (PLTR): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

IBM (IBM) at 3.20 prices around its industry’s typical P/S ratio, while Palantir (PLTR) at 67.94 clears its benchmark range — PLTR looks notably rich on sales.

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

PLTR

Software & Services industry group

67.94

PLTR
67.94
Max
21.27
Q3
10.17
Median
4.61
Q1
2.41
Min
0.02
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IBM (IBM) vs. Palantir (PLTR): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

IBM (IBM) at 6.41 sits near its industry’s typical P/B ratio, while Palantir (PLTR) at 42.78 prices above its benchmark range — PLTR looks rich relative to book.

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

PLTR

Software & Services industry group

42.78

PLTR
42.78
Max
21.34
Q3
9.85
Median
4.58
Q1
2.15
Min
-8.85
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IBM (IBM) vs. Palantir (PLTR): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for IBM (IBM) and Palantir (PLTR)
MetricIBMPLTR
P/E Ratio (TTM)21.05148.75
P/S Ratio (TTM)3.2067.94
P/B Ratio (MRQ)6.4142.78
Free Cash Flow Yield (TTM)5.46%0.52%