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.
| Profile Item | IBM | PLTR |
|---|---|---|
| Name | International Business Machines Corporation | Palantir Technologies Inc. |
| 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 | Application Software |
| Market Capitalization | 264.31 billion USD | 279.69 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | January 2, 1962 | September 30, 2020 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Performance Metrics
| Metric | IBM | PLTR |
|---|---|---|
| Total Return (1Y) | -2.16% | -14.41% |
Risk Profile
Drawdown History
Palantir (PLTR) has an aggressive beta of 1.56, 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
| Metric | IBM | PLTR |
|---|---|---|
| Volatility (1Y, Annualized) | 40.54% | 51.16% |
| Beta (5Y) | 0.68 | 1.56 |
| Avg. Volume (3M) | 8.55M | 44.95M |
Risk-Adjusted Performance
Risk-Return Positioning
Profitability
ROE (TTM)
Both IBM (IBM) at 35.77% and Palantir (PLTR) at 32.59% 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%
PLTR
Software & Services industry group
32.59%
- Max
- 53.38%
- PLTR
- 32.59%
- Q3
- 16.53%
- Median
- 5.38%
- Q1
- -13.43%
- Min
- -55.27%
Net Margin (TTM)
For every dollar of sales, both IBM (IBM) at 15.61% and Palantir (PLTR) at 43.67% 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%
PLTR
Software & Services industry group
43.67%
- Max
- 44.20%
- PLTR
- 43.67%
- Q3
- 14.93%
- Median
- 3.32%
- Q1
- -5.99%
- Min
- -34.99%
Operating Margin (TTM)
Palantir (PLTR) at 46.18% 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%
PLTR
Software & Services industry group
46.18%
- Max
- 60.45%
- PLTR
- 46.18%
- Q3
- 16.49%
- Median
- 4.46%
- Q1
- -12.92%
- Min
- -53.94%
Profitability Metrics
| Metric | IBM | PLTR |
|---|---|---|
| ROE (TTM) | 35.77% | 32.59% |
| ROA (TTM) | 5.37% | 14.70% |
| Net Margin (TTM) | 15.61% | 43.67% |
| Operating Margin (TTM) | 13.81% | 46.18% |
| Gross Margin (TTM) | 58.36% | 84.07% |
Growth
Revenue Growth
Revenue Growth Metrics
| Metric | IBM | PLTR |
|---|---|---|
| Revenue Growth (YoY) | 7.62% | 56.18% |
| Revenue Growth (3Y CAGR) | 3.72% | 32.92% |
EPS Growth
EPS Growth Metrics
| Metric | IBM | PLTR |
|---|---|---|
| EPS Growth (YoY) | 73.72% | 231.06% |
| EPS Growth (3Y CAGR) | 83.76% | -- |
Financial Strength
Current Ratio (MRQ)
Palantir (PLTR) at 6.91 carries current ratio above its industry’s typical mid-range, while IBM (IBM) at 0.80 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.
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
PLTR
Software & Services industry group
6.91
- PLTR
- 6.91
- Max
- 5.55
- Q3
- 2.88
- Median
- 1.72
- Q1
- 1.07
- Min
- 0.03
Debt / Equity (MRQ)
Palantir (PLTR) at 0.02 keeps leverage in the lower quartile, while IBM (IBM) at 2.11 sits in the higher-leverage quartile.
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
PLTR
Software & Services industry group
0.02
- Max
- 2.31
- Q3
- 1.06
- Median
- 0.32
- Q1
- 0.06
- PLTR
- 0.02
- Min
- 0.00
Financial Strength Metrics
| Metric | IBM | PLTR |
|---|---|---|
| Current Ratio (MRQ) | 0.80 | 6.91 |
| Debt / Equity (MRQ) | 2.11 | 0.02 |
| Net Debt / EBITDA | 3.49 | -3.87 |
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 2.42%, ranking against industry peers normally.
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%
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%
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 59.47%, ranking against industry peers normally.
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%
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%
Dividend Metrics
| Metric | IBM | PLTR |
|---|---|---|
| Dividend Yield (TTM) | 2.42% | 0.00% |
| Dividend Payout Ratio (TTM) | 59.47% | 0.00% |
Valuation
P/E Ratio (TTM)
IBM (IBM) at 24.89 is near its industry’s usual P/E ratio, while Palantir (PLTR) at 131.09 sits above its peer range — an unusually expensive price for PLTR’s trailing earnings.
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
PLTR
Software & Services industry group
131.09
- PLTR
- 131.09
- Max
- 126.50
- Q3
- 60.82
- Median
- 30.49
- Q1
- 16.22
- Min
- 0.41
P/S Ratio (TTM)
IBM (IBM) at 3.84 prices around its industry’s typical P/S ratio, while Palantir (PLTR) at 53.54 clears its benchmark range — PLTR looks notably rich on sales.
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
PLTR
Software & Services industry group
53.54
- PLTR
- 53.54
- Max
- 18.72
- Q3
- 8.93
- Median
- 4.21
- Q1
- 2.14
- Min
- 0.02
P/B Ratio (MRQ)
IBM (IBM) at 8.02 sits near its industry’s typical P/B ratio, while Palantir (PLTR) at 33.10 prices above its benchmark range — PLTR looks rich relative to book.
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
PLTR
Software & Services industry group
33.10
- PLTR
- 33.10
- Max
- 18.46
- Q3
- 8.62
- Median
- 4.00
- Q1
- 1.94
- Min
- -7.57
Valuation Metrics
| Metric | IBM | PLTR |
|---|---|---|
| P/E Ratio (TTM) | 24.89 | 131.09 |
| P/S Ratio (TTM) | 3.84 | 53.54 |
| P/B Ratio (MRQ) | 8.02 | 33.10 |
| Free Cash Flow Yield (TTM) | 4.95% | 0.63% |