IBM (IBM) vs. Palantir Technologies (PLTR)

Company Profile

IBM (IBM) and Palantir Technologies (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 Technologies (PLTR) listed on September 30, 2020 and has a much shorter record to draw on.

Historical Performance

Palantir Technologies (PLTR) has an aggressive beta of 1.51, indicating higher sensitivity to broad-market moves, while IBM (IBM) is defensive at 0.56 and tends to be less market-sensitive — they sit on opposite ends of the beta spectrum.

Historical Performance at a Glance

Profitability

Both IBM (IBM) at 35.53% and Palantir Technologies (PLTR) at 32.18% rank in the top quartile for Return on Equity (TTM) among industry peers, indicating strong returns on shareholders’ equity.

Palantir Technologies (PLTR) at 43.67% ranks in the top quartile for Net Profit Margin (TTM), ahead of IBM (IBM) at 15.60%, which sits closer to the industry mid-range.

Palantir Technologies (PLTR) at 38.13% ranks in the top quartile for Operating Profit Margin (TTM), ahead of IBM (IBM) at 15.32%, which sits closer to the industry mid-range.

Profitability at a Glance

Financial Strength

Palantir Technologies (PLTR) at 6.91 carries Current Ratio (MRQ) above its industry mid-range, while IBM (IBM) at 0.80 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.

Palantir Technologies (PLTR) 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.

Palantir Technologies (PLTR) reports a problematic Interest Coverage Ratio (TTM) of -1.53; 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.

Financial Strength at a Glance

Growth

Revenue Growth

Revenue Growth at a Glance

EPS Growth

EPS Growth at a Glance

Dividend

Palantir Technologies (PLTR) 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.

Palantir Technologies (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 58.43%, ranking against industry peers normally.

Dividend at a Glance

Valuation

IBM (IBM) at 19.53 hovers around the typical industry Price-to-Earnings Ratio (TTM), while Palantir Technologies (PLTR) at 142.12 sits above its industry benchmark range — an elevated trailing earnings multiple for PLTR relative to peers.

IBM (IBM) at 3.05 hovers around the typical industry Price-to-Sales Ratio (TTM), while Palantir Technologies (PLTR) at 62.07 sits above its industry benchmark range — an elevated trailing revenue multiple for PLTR relative to peers.

IBM (IBM) at 6.91 hovers around the typical industry Price-to-Book Ratio (MRQ), while Palantir Technologies (PLTR) at 41.39 sits above its industry benchmark range — an elevated book-value multiple for PLTR relative to peers.

Valuation at a Glance