IBM (IBM) vs. Palantir (PLTR)

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.

Valuation

IBM (IBM) at 26.73 hovers around the typical industry Price-to-Earnings Ratio (TTM), while Palantir (PLTR) at 175.89 sits above its industry benchmark range — an elevated trailing earnings multiple for PLTR relative to peers.

IBM (IBM) at 4.12 prices around its industry’s typical Price-to-Sales Ratio (TTM), while Palantir (PLTR) at 71.83 clears its benchmark range — PLTR looks notably rich on sales.

IBM (IBM) at 8.60 sits near its industry’s typical Price-to-Book Ratio (MRQ), while Palantir (PLTR) at 44.41 prices above its benchmark range — PLTR looks rich relative to book.

Valuation at a Glance

Profitability

Both IBM (IBM) at 35.77% and Palantir (PLTR) at 32.59% rank in the top quartile for Return on Equity (TTM) among industry peers, indicating strong returns on shareholders’ equity.

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 Profit Margin (TTM) quartile of their industries.

Palantir (PLTR) at 46.18% operates in the top Operating Profit Margin (TTM) quartile, ahead of IBM (IBM) at 13.81%, which runs around its industry’s norm.

Profitability at a Glance

Growth

Revenue Growth

Revenue Growth at a Glance

EPS Growth

EPS Growth at a Glance

Financial Strength

Palantir (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 (PLTR) at 0.02 maintains Debt-to-Equity Ratio (MRQ) in the lower-leverage quartile, while IBM (IBM) at 2.11 sits in the higher-leverage quartile.

Financial Strength at a Glance

Dividends

IBM (IBM) reports Dividend Yield (TTM) of 2.24% and can be ranked against industry peers; Palantir (PLTR) has no value available for this period, so a direct comparison isn’t possible.

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.

Dividends at a Glance

Performance & Risk

Palantir (PLTR) has an aggressive beta of 1.52, indicating higher sensitivity to broad-market moves, while IBM (IBM) is defensive at 0.67 and tends to be less market-sensitive — they sit on opposite ends of the beta spectrum.

Performance & Risk at a Glance