IBM vs. TM: A Head-to-Head Stock Comparison

Updated on August 24, 2025

Here’s a clear look at IBM and TM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

IBM is a standard domestic listing, while TM trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

Symbol	IBM	TM
Company Name	International Business Machines Corporation	Toyota Motor Corporation
Country	United States	Japan
GICS Sector	Information Technology	Consumer Discretionary
GICS Industry	IT Services	Automobiles
Market Capitalization	225.94 billion USD	259.61 billion USD
Exchange	NYSE	NYSE
Listing Date	January 2, 1962	March 17, 1980
Security Type	Common Stock	ADR

Historical Performance

This chart compares the performance of IBM and TM 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.

IBM vs. TM: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	IBM	TM
5-Day Price Return	2.29%	1.74%
13-Week Price Return	-9.63%	9.76%
26-Week Price Return	-6.42%	3.56%
52-Week Price Return	24.56%	14.38%
Month-to-Date Return	-4.19%	8.47%
Year-to-Date Return	10.34%	-7.02%
10-Day Avg. Volume	5.60M	32.22M
3-Month Avg. Volume	4.60M	29.91M
3-Month Volatility	24.47%	36.57%
Beta	0.69	1.47

Profitability

Return on Equity (TTM)

IBM

21.99%

IT Services Industry

Max: 29.51%
Q3: 16.98%
Median: 13.47%
Q1: 7.93%
Min: -3.97%

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.

TM

12.02%

Automobiles Industry

Max: 25.70%
Q3: 12.88%
Median: 6.92%
Q1: 0.71%
Min: -15.89%

TM’s Return on Equity of 12.02% is on par with the norm for the Automobiles industry, indicating its profitability relative to shareholder equity is typical for the sector.

IBM vs. TM: A comparison of their Return on Equity (TTM) against their respective IT Services and Automobiles industry benchmarks.

Net Profit Margin (TTM)

IBM

9.11%

IT Services Industry

Max: 19.82%
Q3: 11.49%
Median: 6.67%
Q1: 3.61%
Min: -4.62%

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.

TM

8.82%

Automobiles Industry

Max: 9.92%
Q3: 5.78%
Median: 3.23%
Q1: 0.11%
Min: -5.31%

A Net Profit Margin of 8.82% places TM in the upper quartile for the Automobiles industry, signifying strong profitability and more effective cost management than most of its peers.

IBM vs. TM: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Automobiles industry benchmarks.

Operating Profit Margin (TTM)

IBM

9.77%

IT Services Industry

Max: 21.69%
Q3: 14.50%
Median: 10.06%
Q1: 6.98%
Min: 0.06%

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.

TM

9.60%

Automobiles Industry

Max: 13.07%
Q3: 7.22%
Median: 5.29%
Q1: 0.43%
Min: -4.46%

An Operating Profit Margin of 9.60% places TM in the upper quartile for the Automobiles industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

IBM vs. TM: A comparison of their Operating Profit Margin (TTM) against their respective IT Services and Automobiles industry benchmarks.

Profitability at a Glance

Symbol	IBM	TM
Return on Equity (TTM)	21.99%	12.02%
Return on Assets (TTM)	4.12%	4.61%
Net Profit Margin (TTM)	9.11%	8.82%
Operating Profit Margin (TTM)	9.77%	9.60%
Gross Profit Margin (TTM)	57.57%	19.29%

Financial Strength

Current Ratio (MRQ)

IBM

0.91

IT Services Industry

Max: 2.42
Q3: 1.81
Median: 1.47
Q1: 1.09
Min: 0.44

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.

TM

1.27

Automobiles Industry

Max: 2.19
Q3: 1.54
Median: 1.26
Q1: 1.09
Min: 0.48

TM’s Current Ratio of 1.27 aligns with the median group of the Automobiles industry, indicating that its short-term liquidity is in line with its sector peers.

IBM vs. TM: A comparison of their Current Ratio (MRQ) against their respective IT Services and Automobiles industry benchmarks.

Debt-to-Equity Ratio (MRQ)

IBM

2.33

IT Services Industry

Max: 2.33
Q3: 1.17
Median: 0.54
Q1: 0.15
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.

TM

1.07

Automobiles Industry

Max: 2.34
Q3: 1.13
Median: 0.58
Q1: 0.28
Min: 0.06

TM’s Debt-to-Equity Ratio of 1.07 is typical for the Automobiles industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

IBM vs. TM: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Automobiles industry benchmarks.

Interest Coverage Ratio (TTM)

IBM

45.57

IT Services Industry

Max: 144.50
Q3: 84.49
Median: 13.76
Q1: 2.59
Min: -28.13

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.

TM

Automobiles Industry

Max: 77.87
Q3: 42.86
Median: 13.88
Q1: 2.13
Min: -49.07

Interest Coverage Ratio data for TM is currently unavailable.

IBM vs. TM: A comparison of their Interest Coverage Ratio (TTM) against their respective IT Services and Automobiles industry benchmarks.

Financial Strength at a Glance

Symbol	IBM	TM
Current Ratio (MRQ)	0.91	1.27
Quick Ratio (MRQ)	0.80	1.11
Debt-to-Equity Ratio (MRQ)	2.33	1.07
Interest Coverage Ratio (TTM)	45.57	--

Growth

Revenue Growth

IBM vs. TM: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

IBM vs. TM: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

IBM

2.76%

IT Services Industry

Max: 2.80%
Q3: 1.74%
Median: 0.62%
Q1: 0.00%
Min: 0.00%

With a Dividend Yield of 2.76%, IBM offers a more attractive income stream than most of its peers in the IT Services industry, signaling a strong commitment to shareholder returns.

TM

3.09%

Automobiles Industry

Max: 10.71%
Q3: 5.39%
Median: 3.14%
Q1: 0.00%
Min: 0.00%

TM’s Dividend Yield of 3.09% is consistent with its peers in the Automobiles industry, providing a dividend return that is standard for its sector.

IBM vs. TM: A comparison of their Dividend Yield (TTM) against their respective IT Services and Automobiles industry benchmarks.

Dividend Payout Ratio (TTM)

IBM

75.57%

IT Services Industry

Max: 147.75%
Q3: 63.58%
Median: 24.63%
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.

TM

38.83%

Automobiles Industry

Max: 114.43%
Q3: 59.30%
Median: 37.15%
Q1: 16.40%
Min: 0.00%

TM’s Dividend Payout Ratio of 38.83% is within the typical range for the Automobiles industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

IBM vs. TM: A comparison of their Dividend Payout Ratio (TTM) against their respective IT Services and Automobiles industry benchmarks.

Dividend at a Glance

Symbol	IBM	TM
Dividend Yield (TTM)	2.76%	3.09%
Dividend Payout Ratio (TTM)	75.57%	38.83%

Valuation

Price-to-Earnings Ratio (TTM)

IBM

38.56

IT Services Industry

Max: 41.55
Q3: 31.54
Median: 23.25
Q1: 18.12
Min: 6.57

A P/E Ratio of 38.56 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.

TM

8.93

Automobiles Industry

Max: 27.69
Q3: 19.99
Median: 9.85
Q1: 6.60
Min: 4.25

TM’s P/E Ratio of 8.93 is within the middle range for the Automobiles industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

IBM vs. TM: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Automobiles industry benchmarks.

Price-to-Sales Ratio (TTM)

IBM

3.51

IT Services Industry

Max: 6.61
Q3: 4.37
Median: 2.02
Q1: 1.20
Min: 0.19

IBM’s P/S Ratio of 3.51 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.

TM

0.79

Automobiles Industry

Max: 1.52
Q3: 0.84
Median: 0.41
Q1: 0.23
Min: 0.08

TM’s P/S Ratio of 0.79 aligns with the market consensus for the Automobiles industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

IBM vs. TM: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Automobiles industry benchmarks.

Price-to-Book Ratio (MRQ)

IBM

9.96

IT Services Industry

Max: 11.19
Q3: 6.38
Median: 3.47
Q1: 2.31
Min: 0.96

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.

TM

1.09

Automobiles Industry

Max: 4.25
Q3: 2.00
Median: 0.87
Q1: 0.46
Min: 0.19

TM’s P/B Ratio of 1.09 is within the conventional range for the Automobiles industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

IBM vs. TM: A comparison of their Price-to-Book Ratio (MRQ) against their respective IT Services and Automobiles industry benchmarks.

Valuation at a Glance

Symbol	IBM	TM
Price-to-Earnings Ratio (TTM)	38.56	8.93
Price-to-Sales Ratio (TTM)	3.51	0.79
Price-to-Book Ratio (MRQ)	9.96	1.09
Price-to-Free Cash Flow Ratio (TTM)	19.13	52.42