IBM vs. PM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at IBM and PM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | IBM | PM |
|---|---|---|
| Company Name | International Business Machines Corporation | Philip Morris International Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Consumer Staples |
| GICS Industry | IT Services | Tobacco |
| Market Capitalization | 268.90 billion USD | 256.67 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | January 2, 1962 | March 17, 2008 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of IBM and PM by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | IBM | PM |
|---|---|---|
| 5-Day Price Return | 5.47% | -1.91% |
| 13-Week Price Return | -4.28% | -9.39% |
| 26-Week Price Return | 12.71% | 3.77% |
| 52-Week Price Return | 27.77% | 32.50% |
| Month-to-Date Return | 15.88% | -0.83% |
| Year-to-Date Return | 28.35% | 33.66% |
| 10-Day Avg. Volume | 6.49M | 6.38M |
| 3-Month Avg. Volume | 4.69M | 5.67M |
| 3-Month Volatility | 26.73% | 27.04% |
| Beta | 0.69 | 0.47 |
Profitability
Return on Equity (TTM)
IBM
21.99%
IT Services Industry
- Max
- 32.78%
- Q3
- 19.28%
- Median
- 13.86%
- Q1
- 5.50%
- Min
- -10.00%
In the upper quartile for the IT Services industry, IBM’s Return on Equity of 21.99% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
PM
575.44%
Tobacco Industry
- Max
- 49.48%
- Q3
- 49.48%
- Median
- 13.16%
- Q1
- 5.02%
- Min
- 4.04%
PM’s Return on Equity of 575.44% is exceptionally high, placing it well beyond the typical range for the Tobacco industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
IBM
9.11%
IT Services Industry
- Max
- 19.71%
- Q3
- 11.01%
- Median
- 6.66%
- Q1
- 2.96%
- Min
- -6.22%
IBM’s Net Profit Margin of 9.11% is aligned with the median group of its peers in the IT Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
PM
21.08%
Tobacco Industry
- Max
- 21.36%
- Q3
- 16.88%
- Median
- 10.39%
- Q1
- 7.51%
- Min
- 4.74%
A Net Profit Margin of 21.08% places PM in the upper quartile for the Tobacco industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
IBM
9.77%
IT Services Industry
- Max
- 22.44%
- Q3
- 14.90%
- Median
- 8.82%
- Q1
- 4.91%
- Min
- -9.89%
IBM’s Operating Profit Margin of 9.77% is around the midpoint for the IT Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
PM
36.28%
Tobacco Industry
- Max
- 18.53%
- Q3
- 15.03%
- Median
- 11.76%
- Q1
- 11.00%
- Min
- 6.94%
PM’s Operating Profit Margin of 36.28% is exceptionally high, placing it well above the typical range for the Tobacco industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | IBM | PM |
|---|---|---|
| Return on Equity (TTM) | 21.99% | 575.44% |
| Return on Assets (TTM) | 4.12% | 12.56% |
| Net Profit Margin (TTM) | 9.11% | 21.08% |
| Operating Profit Margin (TTM) | 9.77% | 36.28% |
| Gross Profit Margin (TTM) | 57.57% | 66.46% |
Financial Strength
Current Ratio (MRQ)
IBM
0.91
IT Services Industry
- Max
- 3.17
- Q3
- 2.00
- Median
- 1.47
- Q1
- 1.05
- Min
- 0.52
IBM’s Current Ratio of 0.91 falls into the lower quartile for the IT Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
PM
0.83
Tobacco Industry
- Max
- 3.37
- Q3
- 1.84
- Median
- 1.26
- Q1
- 0.79
- Min
- 0.39
PM’s Current Ratio of 0.83 aligns with the median group of the Tobacco industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
IBM
2.33
IT Services Industry
- Max
- 3.11
- Q3
- 1.55
- Median
- 0.55
- Q1
- 0.17
- Min
- 0.00
IBM’s leverage is in the upper quartile of the IT Services industry, with a Debt-to-Equity Ratio of 2.33. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
PM
186.08
Tobacco Industry
- Max
- 2.19
- Q3
- 2.19
- Median
- 0.58
- Q1
- 0.07
- Min
- 0.01
With a Debt-to-Equity Ratio of 186.08, PM operates with exceptionally high leverage compared to the Tobacco industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
IBM
45.57
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 0.77
- Min
- -28.15
IBM’s Interest Coverage Ratio of 45.57 is positioned comfortably within the norm for the IT Services industry, indicating a standard and healthy capacity to cover its interest payments.
PM
11.67
Tobacco Industry
- Max
- 306.04
- Q3
- 126.21
- Median
- 9.35
- Q1
- 6.32
- Min
- -11.45
PM’s Interest Coverage Ratio of 11.67 is positioned comfortably within the norm for the Tobacco industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | IBM | PM |
|---|---|---|
| Current Ratio (MRQ) | 0.91 | 0.83 |
| Quick Ratio (MRQ) | 0.80 | 0.83 |
| Debt-to-Equity Ratio (MRQ) | 2.33 | 186.08 |
| Interest Coverage Ratio (TTM) | 45.57 | 11.67 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
IBM
2.35%
IT Services Industry
- Max
- 2.79%
- Q3
- 1.76%
- Median
- 0.58%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.35%, IBM offers a more attractive income stream than most of its peers in the IT Services industry, signaling a strong commitment to shareholder returns.
PM
3.33%
Tobacco Industry
- Max
- 6.77%
- Q3
- 6.12%
- Median
- 5.06%
- Q1
- 3.83%
- Min
- 0.57%
PM’s Dividend Yield of 3.33% is in the lower quartile for the Tobacco industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
Dividend Payout Ratio (TTM)
IBM
75.57%
IT Services Industry
- Max
- 107.85%
- Q3
- 52.62%
- Median
- 22.53%
- Q1
- 0.00%
- Min
- 0.00%
IBM’s Dividend Payout Ratio of 75.57% is in the upper quartile for the IT Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
PM
70.92%
Tobacco Industry
- Max
- 78.29%
- Q3
- 75.97%
- Median
- 64.37%
- Q1
- 50.14%
- Min
- 49.96%
PM’s Dividend Payout Ratio of 70.92% is within the typical range for the Tobacco industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | IBM | PM |
|---|---|---|
| Dividend Yield (TTM) | 2.35% | 3.33% |
| Dividend Payout Ratio (TTM) | 75.57% | 70.92% |
Valuation
Price-to-Earnings Ratio (TTM)
IBM
45.14
IT Services Industry
- Max
- 56.41
- Q3
- 33.17
- Median
- 23.17
- Q1
- 16.18
- Min
- 6.62
A P/E Ratio of 45.14 places IBM in the upper quartile for the IT Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
PM
30.47
Tobacco Industry
- Max
- 44.17
- Q3
- 36.23
- Median
- 27.79
- Q1
- 11.97
- Min
- 9.91
PM’s P/E Ratio of 30.47 is within the middle range for the Tobacco industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
IBM
4.11
IT Services Industry
- Max
- 5.99
- Q3
- 4.26
- Median
- 1.93
- Q1
- 0.97
- Min
- 0.12
IBM’s P/S Ratio of 4.11 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
PM
6.42
Tobacco Industry
- Max
- 7.60
- Q3
- 5.15
- Median
- 2.97
- Q1
- 1.39
- Min
- 0.80
PM’s P/S Ratio of 6.42 is in the upper echelon for the Tobacco industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
IBM
9.96
IT Services Industry
- Max
- 12.34
- Q3
- 7.54
- Median
- 3.84
- Q1
- 2.52
- Min
- 0.88
IBM’s P/B Ratio of 9.96 is in the upper tier for the IT Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
PM
1,368.86
Tobacco Industry
- Max
- 4.76
- Q3
- 4.76
- Median
- 3.34
- Q1
- 1.97
- Min
- 1.05
At 1,368.86, PM’s P/B Ratio is at an extreme premium to the Tobacco industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | IBM | PM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 45.14 | 30.47 |
| Price-to-Sales Ratio (TTM) | 4.11 | 6.42 |
| Price-to-Book Ratio (MRQ) | 9.96 | 1,368.86 |
| Price-to-Free Cash Flow Ratio (TTM) | 22.40 | 25.75 |