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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 Capitalization264.31 billion USD181.69 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962September 18, 1995
Security TypeCommon StockADR

Price Performance

Cumulative Growth

IBM
SAP
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IBM (IBM) vs. SAP (SAP): 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.

Performance Metrics

Price performance metrics for IBM (IBM) and SAP (SAP)
MetricIBMSAP
Total Return (1Y)-2.16%-48.44%

Risk Profile

Drawdown History

IBM
SAP
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IBM (IBM) vs. SAP (SAP): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk Metrics

Risk profile metrics for IBM (IBM) and SAP (SAP)
MetricIBMSAP
Volatility (1Y, Annualized)40.54%35.01%
Beta (5Y)0.681.15
Avg. Volume (3M)8.55M3.38M

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.

Profitability

ROE (TTM)

IBM (IBM) at 35.77% sits in the top ROE quartile, while SAP (SAP) at 16.35% is closer to the peer norm — stronger capital efficiency for IBM.

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%

SAP

Software & Services industry group

16.35%

Max
53.38%
Q3
16.53%
SAP
16.35%
Median
5.38%
Q1
-13.43%
Min
-55.27%
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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 15.61% and SAP (SAP) at 19.58% 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%

SAP

Software & Services industry group

19.58%

Max
44.20%
SAP
19.58%
Q3
14.93%
Median
3.32%
Q1
-5.99%
Min
-34.99%
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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)

SAP (SAP) at 30.03% 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%

SAP

Software & Services industry group

30.03%

Max
60.45%
SAP
30.03%
Q3
16.49%
Median
4.46%
Q1
-12.92%
Min
-53.94%
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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)35.77%16.35%
ROA (TTM)5.37%9.08%
Net Margin (TTM)15.61%19.58%
Operating Margin (TTM)13.81%30.03%
Gross Margin (TTM)58.36%73.72%

Growth

Revenue Growth

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

Revenue Growth Metrics

Revenue 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

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

EPS Growth Metrics

EPS growth metrics for IBM (IBM) and SAP (SAP)
MetricIBMSAP
EPS Growth (YoY)73.72%130.19%
EPS Growth (3Y CAGR)83.76%46.25%

Financial Strength

Current Ratio (MRQ)

SAP (SAP) at 1.07 keeps current ratio within its industry’s typical 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
1.72
Q1
1.07
IBM
0.80
Min
0.03

SAP

Software & Services industry group

1.07

Max
5.55
Q3
2.88
Median
1.72
SAP
1.07
Q1
1.07
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 0.17 carries an industry-typical debt-to-equity mix, while IBM (IBM) at 2.11 uses more debt funding than most peers.

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

SAP

Software & Services industry group

0.17

Max
2.31
Q3
1.06
Median
0.32
SAP
0.17
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)0.801.07
Debt / Equity (MRQ)2.110.17
Net Debt / EBITDA3.49-0.19

Dividends

Dividend Yield (TTM)

Both IBM (IBM) at 2.42% and SAP (SAP) at 1.61% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

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%

SAP

Software & Services industry group

1.61%

SAP
1.61%
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 59.47% and SAP (SAP) at 37.15% 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

59.47%

IBM
59.47%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

SAP

Software & Services industry group

37.15%

SAP
37.15%
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)2.42%1.61%
Dividend Payout Ratio (TTM)59.47%37.15%

Valuation

P/E Ratio (TTM)

Both IBM (IBM) at 24.89 and SAP (SAP) at 21.71 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

24.89

Max
126.50
Q3
60.82
Median
30.49
IBM
24.89
Q1
16.22
Min
0.41

SAP

Software & Services industry group

21.71

Max
126.50
Q3
60.82
Median
30.49
SAP
21.71
Q1
16.22
Min
0.41
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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 3.84 and SAP (SAP) at 4.87 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

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

SAP

Software & Services industry group

4.87

Max
18.72
Q3
8.93
SAP
4.87
Median
4.21
Q1
2.14
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)

On P/B ratio, both IBM (IBM) at 8.02 and SAP (SAP) at 3.45 are valued close to their industries’ norm against book — neither stands out from peers.

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

SAP

Software & Services industry group

3.45

Max
18.46
Q3
8.62
Median
4.00
SAP
3.45
Q1
1.94
Min
-7.57
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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)24.8921.71
P/S Ratio (TTM)3.844.87
P/B Ratio (MRQ)8.023.45
Free Cash Flow Yield (TTM)4.95%4.48%