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IBM vs. SHOP: IBM vs. Shopify Stock Comparison

How do IBM (IBM) and Shopify (SHOP) 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 Shopify (SHOP) both belong to the IT Services industry, though IBM is classified under IT Consulting & Other Services while SHOP falls under Internet Services & Infrastructure.

Company profile comparison for IBM (IBM) and Shopify (SHOP)
Profile ItemIBMSHOP
NameInternational Business Machines CorporationShopify Inc.
Country/RegionUnited StatesCanada
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustryIT ServicesIT Services
GICS Sub-IndustryIT Consulting & Other ServicesInternet Services & Infrastructure
Market Capitalization231.55 billion USD191.58 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateJanuary 2, 1962May 20, 2015
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

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

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for IBM (IBM) and Shopify (SHOP)
MetricIBMSHOP
Total Return (1Y)-16.98%-0.87%
Total Return (3Y, Annualized)22.40%35.77%
Total Return (5Y, Annualized)19.64%-0.57%

Risk Profile

Drawdown History

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

Risk Metrics

Shopify (SHOP) carries a highly aggressive beta of 2.65, indicating much higher sensitivity to broad-market moves, whereas IBM (IBM) is closer to market-like at 0.79 — a noticeable difference in market-sensitivity profile.

Risk profile metrics for IBM (IBM) and Shopify (SHOP)
MetricIBMSHOP
Volatility (1Y, Annualized)48.48%59.71%
Beta (5Y)0.792.65
Max Drawdown (5Y)-37.50%-84.82%
Avg. Volume (3M)5.30M8.79M

Risk-Adjusted Performance

Risk-Return Positioning

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IBM and SHOP 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 Shopify (SHOP)
MetricIBMSHOP
Sharpe Ratio (1Y)-0.44-0.09
Sortino Ratio (1Y)-0.56-0.12

Profitability

ROE (TTM)

IBM (IBM) at 34.77% sits in the top ROE quartile, while Shopify (SHOP) at 16.83% is closer to the peer norm — stronger capital efficiency for IBM.

IBM

Software & Services industry group

34.77%

Max
53.85%
IBM
34.77%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%

SHOP

Software & Services industry group

16.83%

Max
53.85%
Q3
17.90%
SHOP
16.83%
Median
6.59%
Q1
-9.59%
Min
-50.52%
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IBM (IBM) vs. Shopify (SHOP): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

IBM (IBM) at 15.99% retains a top-quartile share of revenue as profit, ahead of Shopify (SHOP) at 15.01%, which keeps about the industry-typical share.

IBM

Software & Services industry group

15.99%

Max
41.17%
IBM
15.99%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%

SHOP

Software & Services industry group

15.01%

Max
41.17%
Q3
15.28%
SHOP
15.01%
Median
4.63%
Q1
-5.42%
Min
-33.17%
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IBM (IBM) vs. Shopify (SHOP): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Shopify (SHOP) at 18.39% operates in the top operating margin quartile, ahead of IBM (IBM) at 16.97%, which runs around its industry’s norm.

IBM

Software & Services industry group

16.97%

Max
46.89%
Q3
17.64%
IBM
16.97%
Median
8.73%
Q1
-2.13%
Min
-30.45%

SHOP

Software & Services industry group

18.39%

Max
46.89%
SHOP
18.39%
Q3
17.64%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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IBM (IBM) vs. Shopify (SHOP): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for IBM (IBM) and Shopify (SHOP)
MetricIBMSHOP
ROE (TTM)34.77%16.83%
ROA (TTM)5.33%10.77%
Net Margin (TTM)15.99%15.01%
Operating Margin (TTM)16.97%18.39%
Gross Margin (TTM)57.97%47.49%

Growth

Revenue Growth

Shopify (SHOP) at 30.14% sits in the top revenue growth quartile, while IBM (IBM) at 7.62% is closer to the peer norm — faster top-line expansion for SHOP.

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

EPS Growth

IBM (IBM) at 73.72% sits in the top EPS growth quartile, while Shopify (SHOP) at -39.47% is closer to the peer norm — faster per-share earnings growth for IBM.

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

Growth Metrics

Growth metrics for IBM (IBM) and Shopify (SHOP)
MetricIBMSHOP
Revenue Growth (YoY)7.62%30.14%
Revenue Growth (3Y CAGR)3.72%27.31%
EPS Growth (YoY)73.72%-39.47%
EPS Growth (3Y CAGR)83.76%--

Financial Strength

Current Ratio (MRQ)

Shopify (SHOP) at 4.86 carries current ratio above its industry’s typical mid-range, while IBM (IBM) at 0.86 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.

IBM

Software & Services industry group

0.86

Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
IBM
0.86
Min
0.03

SHOP

Software & Services industry group

4.86

Max
5.11
SHOP
4.86
Q3
2.77
Median
1.67
Q1
1.01
Min
0.03
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IBM (IBM) vs. Shopify (SHOP): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Shopify (SHOP) at 0.01 keeps leverage in the lower quartile, while IBM (IBM) at 1.85 sits in the higher-leverage quartile.

IBM

Software & Services industry group

1.85

Max
2.52
IBM
1.85
Q3
1.13
Median
0.40
Q1
0.07
Min
0.00

SHOP

Software & Services industry group

0.01

Max
2.52
Q3
1.13
Median
0.40
Q1
0.07
SHOP
0.01
Min
0.00
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IBM (IBM) vs. Shopify (SHOP): 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 Shopify (SHOP)
MetricIBMSHOP
Current Ratio (MRQ)0.864.86
Debt / Equity (MRQ)1.850.01
Net Debt / EBITDA3.37-1.75

Dividends

Dividend Yield (TTM)

Shopify (SHOP) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile IBM (IBM) reports a yield of 2.73%, ranking against industry peers normally.

IBM

Software & Services industry group

2.73%

IBM
2.73%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

SHOP

Software & Services industry group

0.00%

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

Dividend Payout Ratio (TTM)

Shopify (SHOP) 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 57.51%, ranking against industry peers normally.

IBM

Software & Services industry group

57.51%

IBM
57.51%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

SHOP

Software & Services industry group

0.00%

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

Dividend Metrics

Dividend metrics for IBM (IBM) and Shopify (SHOP)
MetricIBMSHOP
Dividend Yield (TTM)2.73%0.00%
Dividend Payout Ratio (TTM)57.51%0.00%

Valuation

P/E Ratio (TTM)

IBM (IBM) at 20.90 is near its industry’s usual P/E ratio, while Shopify (SHOP) at 91.36 sits in the richer quartile — SHOP needs stronger growth or earnings quality to justify the premium.

IBM

Software & Services industry group

20.90

Max
112.94
Q3
60.32
Median
32.91
IBM
20.90
Q1
18.77
Min
6.69

SHOP

Software & Services industry group

91.36

Max
112.94
SHOP
91.36
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69
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IBM (IBM) vs. Shopify (SHOP): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

IBM (IBM) at 3.31 is priced about in line with its industry on P/S ratio, while Shopify (SHOP) at 13.52 sits in the pricier quartile — SHOP costs more per dollar of sales.

IBM

Software & Services industry group

3.31

Max
17.91
Q3
8.78
Median
4.25
IBM
3.31
Q1
2.23
Min
0.02

SHOP

Software & Services industry group

13.52

Max
17.91
SHOP
13.52
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
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IBM (IBM) vs. Shopify (SHOP): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

IBM (IBM) at 6.52 is valued about in line with its industry on P/B ratio, while Shopify (SHOP) at 15.02 carries an above-peer premium to book — SHOP is pricier on assets.

IBM

Software & Services industry group

6.52

Max
16.63
Q3
8.50
IBM
6.52
Median
4.30
Q1
1.92
Min
-3.90

SHOP

Software & Services industry group

15.02

Max
16.63
SHOP
15.02
Q3
8.50
Median
4.30
Q1
1.92
Min
-3.90
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IBM (IBM) vs. Shopify (SHOP): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for IBM (IBM) and Shopify (SHOP)
MetricIBMSHOP
P/E Ratio (TTM)20.9091.36
P/S Ratio (TTM)3.3113.52
P/B Ratio (MRQ)6.5215.02
Free Cash Flow Yield (TTM)5.34%0.86%