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IBM vs. SAP: IBM vs. SAP Stock Comparison

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

IBM (IBM) trades as ordinary local shares, while SAP (SAP) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for IBM (IBM) and SAP (SAP)
Profile ItemIBMSAP
NameInternational Business Machines CorporationSAP SE Sponsored ADR
Country/RegionUnited StatesGermany
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustryIT ServicesSoftware
GICS Sub-IndustryIT Consulting & Other ServicesApplication Software
Market Capitalization220.76 billion USD240.04 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962September 18, 1995
Security TypeCommon StockADR

Price Performance

Cumulative Growth

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

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for IBM (IBM) and SAP (SAP)
MetricIBMSAP
Total Return (1Y)1.39%-24.14%
Total Return (3Y, Annualized)21.89%15.87%
Total Return (5Y, Annualized)15.69%8.81%

Risk Profile

Drawdown History

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

Risk Metrics

Risk profile metrics for IBM (IBM) and SAP (SAP)
MetricIBMSAP
Volatility (1Y, Annualized)48.21%38.27%
Beta (5Y)0.711.15
Max Drawdown (5Y)-37.50%-52.26%
Avg. Volume (3M)11.11M3.09M

Risk-Adjusted Performance

Risk-Return Positioning

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IBM and SAP 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 SAP (SAP)
MetricIBMSAP
Sharpe Ratio (1Y)-0.05-0.73
Sortino Ratio (1Y)-0.07-0.99

Profitability

ROE (TTM)

Both IBM (IBM) at 34.46% and SAP (SAP) at 18.32% 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
54.69%
IBM
34.46%
Q3
16.79%
Median
4.96%
Q1
-13.49%
Min
-54.87%

SAP

Software & Services industry group

18.32%

Max
54.69%
SAP
18.32%
Q3
16.79%
Median
4.96%
Q1
-13.49%
Min
-54.87%
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IBM (IBM) vs. SAP (SAP): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both IBM (IBM) at 15.52% and SAP (SAP) at 20.41% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

IBM

Software & Services industry group

15.52%

Max
41.99%
IBM
15.52%
Q3
15.05%
Median
3.31%
Q1
-6.07%
Min
-30.39%

SAP

Software & Services industry group

20.41%

Max
41.99%
SAP
20.41%
Q3
15.05%
Median
3.31%
Q1
-6.07%
Min
-30.39%
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IBM (IBM) vs. SAP (SAP): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both IBM (IBM) at 16.55% and SAP (SAP) at 27.62% 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
14.94%
Median
4.55%
Q1
-7.01%
Min
-32.77%

SAP

Software & Services industry group

27.62%

Max
47.12%
SAP
27.62%
Q3
14.94%
Median
4.55%
Q1
-7.01%
Min
-32.77%
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IBM (IBM) vs. SAP (SAP): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for IBM (IBM) and SAP (SAP)
MetricIBMSAP
ROE (TTM)34.46%18.32%
ROA (TTM)5.30%9.54%
Net Margin (TTM)15.52%20.41%
Operating Margin (TTM)16.55%27.62%
Gross Margin (TTM)58.10%73.66%

Growth

Revenue Growth

Both IBM (IBM) at 7.62% and SAP (SAP) at 7.68% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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

EPS Growth

Both IBM (IBM) at 73.72% and SAP (SAP) at 130.19% sit in the top peer quartile for EPS growth, so each is compounding per-share earnings faster than typical industry peers.

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IBM (IBM) vs. SAP (SAP): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for IBM (IBM) and SAP (SAP)
MetricIBMSAP
Revenue Growth (YoY)7.62%7.68%
Revenue Growth (3Y CAGR)3.72%7.63%
EPS Growth (YoY)73.72%130.19%
EPS Growth (3Y CAGR)83.76%46.25%

Financial Strength

Current Ratio (MRQ)

SAP (SAP) at 1.15 keeps current ratio within its industry’s typical mid-range, while IBM (IBM) at 0.79 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for IBM.

IBM

Software & Services industry group

0.79

Max
5.67
Q3
2.91
Median
1.64
Q1
1.02
IBM
0.79
Min
0.03

SAP

Software & Services industry group

1.15

Max
5.67
Q3
2.91
Median
1.64
SAP
1.15
Q1
1.02
Min
0.03
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IBM (IBM) vs. SAP (SAP): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

SAP (SAP) at 0.22 carries an industry-typical debt-to-equity mix, while IBM (IBM) at 1.89 uses more debt funding than most peers.

IBM

Software & Services industry group

1.89

Max
2.35
IBM
1.89
Q3
1.02
Median
0.33
Q1
0.06
Min
0.00

SAP

Software & Services industry group

0.22

Max
2.35
Q3
1.02
Median
0.33
SAP
0.22
Q1
0.06
Min
0.00
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IBM (IBM) vs. SAP (SAP): 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 SAP (SAP)
MetricIBMSAP
Current Ratio (MRQ)0.791.15
Debt / Equity (MRQ)1.890.22
Net Debt / EBITDA3.47-0.14

Dividends

Dividend Yield (TTM)

Both IBM (IBM) at 2.84% and SAP (SAP) at 1.19% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

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%

SAP

Software & Services industry group

1.19%

SAP
1.19%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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IBM (IBM) vs. SAP (SAP): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both IBM (IBM) at 59.77% and SAP (SAP) at 37.53% pay out more of their earnings than any of their industry peers — the thinnest cover in their groups, so dividend headroom deserves attention.

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%

SAP

Software & Services industry group

37.53%

SAP
37.53%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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IBM (IBM) vs. SAP (SAP): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for IBM (IBM) and SAP (SAP)
MetricIBMSAP
Dividend Yield (TTM)2.84%1.19%
Dividend Payout Ratio (TTM)59.77%37.53%

Valuation

P/E Ratio (TTM)

Both IBM (IBM) at 21.05 and SAP (SAP) at 27.19 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

IBM

Software & Services industry group

21.05

Max
106.57
Q3
61.67
Median
31.54
IBM
21.05
Q1
16.92
Min
0.38

SAP

Software & Services industry group

27.19

Max
106.57
Q3
61.67
Median
31.54
SAP
27.19
Q1
16.92
Min
0.38
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IBM (IBM) vs. SAP (SAP): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both IBM (IBM) at 3.20 and SAP (SAP) at 6.29 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

IBM

Software & Services industry group

3.20

Max
22.92
Q3
10.70
Median
4.65
IBM
3.20
Q1
2.38
Min
0.02

SAP

Software & Services industry group

6.29

Max
22.92
Q3
10.70
SAP
6.29
Median
4.65
Q1
2.38
Min
0.02
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IBM (IBM) vs. SAP (SAP): 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 SAP (SAP) at 65.46 prices above its benchmark range — SAP looks rich relative to book.

IBM

Software & Services industry group

6.41

Max
19.37
Q3
9.63
IBM
6.41
Median
4.50
Q1
2.03
Min
-9.20

SAP

Software & Services industry group

65.46

SAP
65.46
Max
19.37
Q3
9.63
Median
4.50
Q1
2.03
Min
-9.20
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IBM (IBM) vs. SAP (SAP): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for IBM (IBM) and SAP (SAP)
MetricIBMSAP
P/E Ratio (TTM)21.0527.19
P/S Ratio (TTM)3.206.29
P/B Ratio (MRQ)6.4165.46
Free Cash Flow Yield (TTM)5.46%3.79%