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

Updated on November 17, 2025

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

Company Profile

Symbol	IBM	TTWO
Company Name	International Business Machines Corporation	Take-Two Interactive Software, Inc.
Country	United States	United States
GICS Sector	Information Technology	Communication Services
GICS Industry	IT Services	Entertainment
Market Capitalization	288.95 billion USD	43.25 billion USD
Exchange	NYSE	NasdaqGS
Listing Date	January 2, 1962	April 15, 1997
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of IBM and TTWO 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. TTWO: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	IBM	TTWO
5-Day Price Return	2.75%	-7.28%
13-Week Price Return	30.82%	5.12%
26-Week Price Return	22.01%	3.41%
52-Week Price Return	44.66%	30.64%
Month-to-Date Return	0.56%	-8.70%
Year-to-Date Return	40.62%	27.15%
10-Day Avg. Volume	5.27M	2.36M
3-Month Avg. Volume	5.41M	1.72M
3-Month Volatility	27.62%	27.51%
Beta	0.68	0.95

Profitability

Return on Equity (TTM)

IBM

28.86%

IT Services Industry

Max: 32.78%
Q3: 19.28%
Median: 13.86%
Q1: 5.50%
Min: -10.00%

In the upper quartile for the IT Services industry, IBM’s Return on Equity of 28.86% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

TTWO

-108.38%

Entertainment Industry

Max: 42.50%
Q3: 24.06%
Median: 13.69%
Q1: 5.35%
Min: -17.95%

TTWO has a negative Return on Equity of -108.38%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

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

Net Profit Margin (TTM)

IBM

12.09%

IT Services Industry

Max: 19.71%
Q3: 11.01%
Median: 6.66%
Q1: 2.96%
Min: -6.22%

A Net Profit Margin of 12.09% places IBM in the upper quartile for the IT Services industry, signifying strong profitability and more effective cost management than most of its peers.

TTWO

-64.26%

Entertainment Industry

Max: 45.33%
Q3: 24.40%
Median: 13.94%
Q1: 4.28%
Min: -23.67%

TTWO has a negative Net Profit Margin of -64.26%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

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

Operating Profit Margin (TTM)

IBM

14.51%

IT Services Industry

Max: 22.44%
Q3: 14.90%
Median: 8.82%
Q1: 4.91%
Min: -9.89%

IBM’s Operating Profit Margin of 14.51% is around the midpoint for the IT Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

TTWO

-64.10%

Entertainment Industry

Max: 41.77%
Q3: 28.26%
Median: 16.13%
Q1: 8.03%
Min: -3.93%

TTWO has a negative Operating Profit Margin of -64.10%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

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

Profitability at a Glance

Symbol	IBM	TTWO
Return on Equity (TTM)	28.86%	-108.38%
Return on Assets (TTM)	5.48%	-38.41%
Net Profit Margin (TTM)	12.09%	-64.26%
Operating Profit Margin (TTM)	14.51%	-64.10%
Gross Profit Margin (TTM)	57.81%	56.70%

Financial Strength

Current Ratio (MRQ)

IBM

0.93

IT Services Industry

Max: 3.17
Q3: 2.00
Median: 1.47
Q1: 1.05
Min: 0.52

IBM’s Current Ratio of 0.93 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.

TTWO

1.15

Entertainment Industry

Max: 6.76
Q3: 4.02
Median: 1.55
Q1: 0.86
Min: 0.38

TTWO’s Current Ratio of 1.15 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

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

Debt-to-Equity Ratio (MRQ)

IBM

2.26

IT Services Industry

Max: 3.11
Q3: 1.55
Median: 0.55
Q1: 0.17
Min: 0.00

IBM’s leverage is in the upper quartile of the IT Services industry, with a Debt-to-Equity Ratio of 2.26. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

TTWO

0.89

Entertainment Industry

Max: 1.54
Q3: 0.77
Median: 0.16
Q1: 0.02
Min: 0.00

TTWO’s leverage is in the upper quartile of the Entertainment industry, with a Debt-to-Equity Ratio of 0.89. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

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

Interest Coverage Ratio (TTM)

IBM

45.57

IT Services Industry

Max: 129.00
Q3: 56.00
Median: 11.69
Q1: 0.77
Min: -28.15

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.

TTWO

-44.74

Entertainment Industry

Max: 87.17
Q3: 35.59
Median: 7.06
Q1: 1.13
Min: -44.74

TTWO has a negative Interest Coverage Ratio of -44.74. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

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

Financial Strength at a Glance

Symbol	IBM	TTWO
Current Ratio (MRQ)	0.93	1.15
Quick Ratio (MRQ)	0.81	1.05
Debt-to-Equity Ratio (MRQ)	2.26	0.89
Interest Coverage Ratio (TTM)	45.57	-44.74

Growth

Revenue Growth

IBM vs. TTWO: 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. TTWO: 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

2.17%

IT Services Industry

Max: 2.79%
Q3: 1.76%
Median: 0.58%
Q1: 0.00%
Min: 0.00%

With a Dividend Yield of 2.17%, IBM offers a more attractive income stream than most of its peers in the IT Services industry, signaling a strong commitment to shareholder returns.

TTWO

0.00%

Entertainment Industry

Max: 2.90%
Q3: 1.29%
Median: 0.59%
Q1: 0.00%
Min: 0.00%

TTWO currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

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

Dividend Payout Ratio (TTM)

IBM

78.74%

IT Services Industry

Max: 107.85%
Q3: 52.62%
Median: 22.53%
Q1: 0.00%
Min: 0.00%

IBM’s Dividend Payout Ratio of 78.74% 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.

TTWO

0.00%

Entertainment Industry

Max: 82.30%
Q3: 38.45%
Median: 29.74%
Q1: 0.00%
Min: 0.00%

TTWO has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

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

Dividend at a Glance

Symbol	IBM	TTWO
Dividend Yield (TTM)	2.17%	0.00%
Dividend Payout Ratio (TTM)	78.74%	0.00%

Valuation

Price-to-Earnings Ratio (TTM)

IBM

36.28

IT Services Industry

Max: 56.41
Q3: 33.17
Median: 23.17
Q1: 16.18
Min: 6.62

A P/E Ratio of 36.28 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.

TTWO

Entertainment Industry

Max: 92.09
Q3: 54.51
Median: 28.92
Q1: 19.75
Min: 2.96

P/E Ratio data for TTWO is currently unavailable.

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

Price-to-Sales Ratio (TTM)

IBM

4.39

IT Services Industry

Max: 5.99
Q3: 4.26
Median: 1.93
Q1: 0.97
Min: 0.12

IBM’s P/S Ratio of 4.39 is in the upper echelon for the IT Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

TTWO

6.88

Entertainment Industry

Max: 12.34
Q3: 7.67
Median: 5.06
Q1: 2.72
Min: 0.67

TTWO’s P/S Ratio of 6.88 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

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

Price-to-Book Ratio (MRQ)

IBM

9.42

IT Services Industry

Max: 12.34
Q3: 7.54
Median: 3.84
Q1: 2.52
Min: 0.88

IBM’s P/B Ratio of 9.42 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.

TTWO

13.89

Entertainment Industry

Max: 22.84
Q3: 10.54
Median: 6.60
Q1: 2.30
Min: 0.65

TTWO’s P/B Ratio of 13.89 is in the upper tier for the Entertainment 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.

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

Valuation at a Glance

Symbol	IBM	TTWO
Price-to-Earnings Ratio (TTM)	36.28	--
Price-to-Sales Ratio (TTM)	4.39	6.88
Price-to-Book Ratio (MRQ)	9.42	13.89
Price-to-Free Cash Flow Ratio (TTM)	23.96	133.16