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IBM (IBM) vs. SAP (SAP)

This page compares IBM (IBM) with SAP (SAP) using performance and risk, profitability, financial strength, growth, dividends, and valuation metrics.

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 a standard ordinary-equity line, while SAP (SAP) is an ADR tied to a foreign-share or depositary-receipt structure — compare with FX exposure, program fees, and dividend-withholding-tax differences in mind.

SymbolIBMSAP
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 Capitalization260.81 billion USD210.93 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962September 18, 1995
Security TypeCommon StockADR

Valuation

Price-to-Earnings Ratio (TTM)

Both IBM (IBM) at 24.58 and SAP (SAP) at 24.88 post Price-to-Earnings Ratio (TTM) near the typical industry midpoint — neither company stands out strongly from peers on trailing earnings multiple.

IBM

Software & Services industry group

24.58

Max
108.25
Q3
55.55
Median
31.70
Q1
15.92
Min
0.36

SAP

Software & Services industry group

24.88

Max
108.25
Q3
55.55
Median
31.70
Q1
15.92
Min
0.36
IBM (IBM) vs. SAP (SAP): A comparison of their Price-to-Earnings Ratio (TTM) against the Software & Services industry group benchmark.

Price-to-Sales Ratio (TTM)

On Price-to-Sales Ratio (TTM), both IBM (IBM) at 3.78 and SAP (SAP) at 5.65 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

IBM

Software & Services industry group

3.78

Max
18.52
Q3
9.02
Median
4.01
Q1
2.11
Min
0.02

SAP

Software & Services industry group

5.65

Max
18.52
Q3
9.02
Median
4.01
Q1
2.11
Min
0.02
IBM (IBM) vs. SAP (SAP): A comparison of their Price-to-Sales Ratio (TTM) against the Software & Services industry group benchmark.

Price-to-Book Ratio (MRQ)

On Price-to-Book Ratio (MRQ), both IBM (IBM) at 7.91 and SAP (SAP) at 3.99 are valued close to their industries’ norm against book — neither stands out from peers.

IBM

Software & Services industry group

7.91

Max
17.39
Q3
8.16
Median
4.00
Q1
1.95
Min
-6.56

SAP

Software & Services industry group

3.99

Max
17.39
Q3
8.16
Median
4.00
Q1
1.95
Min
-6.56
IBM (IBM) vs. SAP (SAP): A comparison of their Price-to-Book Ratio (MRQ) against the Software & Services industry group benchmark.

Valuation at a Glance

SymbolIBMSAP
Price-to-Earnings Ratio (TTM)24.5824.88
Price-to-Sales Ratio (TTM)3.785.65
Price-to-Book Ratio (MRQ)7.913.99
Free Cash Flow Yield5.02%3.86%

Profitability

Return on Equity (TTM)

IBM (IBM) at 35.77% ranks in the top quartile for Return on Equity (TTM), ahead of SAP (SAP) at 16.35%, which sits closer to the industry mid-range.

IBM

Software & Services industry group

35.77%

Max
58.77%
Q3
16.77%
Median
5.20%
Q1
-16.00%
Min
-63.05%

SAP

Software & Services industry group

16.35%

Max
58.77%
Q3
16.77%
Median
5.20%
Q1
-16.00%
Min
-63.05%
IBM (IBM) vs. SAP (SAP): A comparison of their Return on Equity (TTM) against the Software & Services industry group benchmark.

Net Profit Margin (TTM)

For every dollar of sales, both IBM (IBM) at 15.61% and SAP (SAP) at 19.58% retain more as net profit than most peers, landing in the top Net Profit Margin (TTM) quartile of their industries.

IBM

Software & Services industry group

15.61%

Max
44.20%
Q3
15.06%
Median
3.32%
Q1
-6.49%
Min
-34.99%

SAP

Software & Services industry group

19.58%

Max
44.20%
Q3
15.06%
Median
3.32%
Q1
-6.49%
Min
-34.99%
IBM (IBM) vs. SAP (SAP): A comparison of their Net Profit Margin (TTM) against the Software & Services industry group benchmark.

Operating Profit Margin (TTM)

SAP (SAP) at 30.03% operates in the top Operating Profit Margin (TTM) 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%
Median
4.46%
Q1
-12.92%
Min
-54.21%

SAP

Software & Services industry group

30.03%

Max
60.45%
Q3
16.49%
Median
4.46%
Q1
-12.92%
Min
-54.21%
IBM (IBM) vs. SAP (SAP): A comparison of their Operating Profit Margin (TTM) against the Software & Services industry group benchmark.

Profitability at a Glance

SymbolIBMSAP
Return on Equity (TTM)35.77%16.35%
Return on Assets (TTM)5.37%9.08%
Net Profit Margin (TTM)15.61%19.58%
Operating Profit Margin (TTM)13.81%30.03%
Gross Profit Margin (TTM)58.36%73.72%

Growth

Revenue Growth

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

Revenue Growth at a Glance

SymbolIBMSAP
1-Year Revenue Growth7.62%7.68%
3-Year Revenue CAGR3.72%7.63%

EPS Growth

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

EPS Growth at a Glance

SymbolIBMSAP
1-Year EPS Growth73.72%130.19%
3-Year EPS CAGR83.76%46.25%

Financial Strength

Current Ratio (MRQ)

SAP (SAP) at 1.07 keeps Current Ratio (MRQ) within its industry mid-range, while IBM (IBM) at 0.80 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for IBM.

IBM

Software & Services industry group

0.80

Max
5.55
Q3
2.88
Median
1.73
Q1
1.07
Min
0.03

SAP

Software & Services industry group

1.07

Max
5.55
Q3
2.88
Median
1.73
Q1
1.07
Min
0.03
IBM (IBM) vs. SAP (SAP): A comparison of their Current Ratio (MRQ) against the Software & Services industry group benchmark.

Debt-to-Equity Ratio (MRQ)

SAP (SAP) at 0.17 carries Debt-to-Equity Ratio (MRQ) around its industry mid-range, while IBM (IBM) at 2.11 sits in the higher-leverage quartile.

IBM

Software & Services industry group

2.11

Max
2.31
Q3
1.06
Median
0.32
Q1
0.06
Min
0.00

SAP

Software & Services industry group

0.17

Max
2.31
Q3
1.06
Median
0.32
Q1
0.06
Min
0.00
IBM (IBM) vs. SAP (SAP): A comparison of their Debt-to-Equity Ratio (MRQ) against the Software & Services industry group benchmark.

Financial Strength at a Glance

SymbolIBMSAP
Current Ratio (MRQ)0.801.07
Debt-to-Equity Ratio (MRQ)2.110.17
Net Debt / EBITDA3.49-0.19

Dividends

Dividend Yield (TTM)

Both IBM (IBM) at 2.44% and SAP (SAP) at 1.64% report Dividend Yield (TTM) near their industry mid-ranges, so neither company stands out strongly from peers on cash yield relative to share price.

IBM

Software & Services industry group

2.44%

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

SAP

Software & Services industry group

1.64%

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

Dividend Payout Ratio (TTM)

Both IBM (IBM) at 59.47% and SAP (SAP) at 37.15% post Dividend Payout Ratio (TTM) outside their industries’ typical mid-range — either leaning toward more retention or more distribution than the industry median.

IBM

Software & Services industry group

59.47%

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

SAP

Software & Services industry group

37.15%

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
IBM (IBM) vs. SAP (SAP): A comparison of their Dividend Payout Ratio (TTM) against the Software & Services industry group benchmark.

Dividends at a Glance

SymbolIBMSAP
Dividend Yield (TTM)2.44%1.64%
Dividend Payout Ratio (TTM)59.47%37.15%

Performance & Risk

IBM
SAP
Loading price history…
IBM (IBM) vs. SAP (SAP): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Performance & Risk at a Glance

SymbolIBMSAP
1-Year Return7.12%-40.26%
1-Year Volatility39.59%33.89%
Beta0.681.11
3-Month Avg. Volume7.79M3.43M