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IBM vs. U: IBM vs. Unity Software Stock Comparison

How do IBM (IBM) and Unity Software (U) 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 Unity Software (U) both fall under the Software & Services industry group, but IBM is classified in IT Services while U is classified in Software.

IBM (IBM) has more than two decades of public-market history since January 2, 1962, whereas Unity Software (U) listed on September 18, 2020 and has a much shorter record to draw on.

Company profile comparison for IBM (IBM) and Unity Software (U)
Profile ItemIBMU
NameInternational Business Machines CorporationUnity Software Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustryIT ServicesSoftware
GICS Sub-IndustryIT Consulting & Other ServicesApplication Software
Market Capitalization231.55 billion USD22.85 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962September 18, 2020
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

IBM
U
GSPC
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IBM (IBM) vs. Unity Software (U), 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 Unity Software (U). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for IBM (IBM) and Unity Software (U)
MetricIBMU
Total Return (1Y)-16.98%30.56%
Total Return (3Y, Annualized)22.40%27.46%
Total Return (5Y, Annualized)19.64%-21.16%

Risk Profile

Drawdown History

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

Risk Metrics

Risk profile metrics for IBM (IBM) and Unity Software (U)
MetricIBMU
Volatility (1Y, Annualized)48.48%71.11%
Beta (5Y)0.791.97
Max Drawdown (5Y)-37.50%-93.07%
Avg. Volume (3M)5.30M10.92M

Risk-Adjusted Performance

Risk-Return Positioning

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IBM and U 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 Unity Software (U)
MetricIBMU
Sharpe Ratio (1Y)-0.440.37
Sortino Ratio (1Y)-0.560.51

Profitability

ROE (TTM)

Unity Software (U) reports a negative ROE of -9.66%; negative ROE can reflect losses or negative shareholders’ equity, so it is harder to read as capital efficiency. Meanwhile IBM (IBM) reports 34.77%, ranking against industry peers normally.

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%

U

Software & Services industry group

-9.66%

Max
53.85%
Q3
17.90%
Median
6.59%
Q1
-9.59%
U
-9.66%
Min
-50.52%
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IBM (IBM) vs. Unity Software (U): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Unity Software (U) reports a negative net margin of -15.60%, usually indicating a net loss over the period. Meanwhile IBM (IBM) reports 15.99%, ranking against industry peers normally.

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%

U

Software & Services industry group

-15.60%

Max
41.17%
Q3
15.28%
Median
4.63%
Q1
-5.42%
U
-15.60%
Min
-33.17%
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IBM (IBM) vs. Unity Software (U): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both IBM (IBM) at 16.97% and Unity Software (U) at 16.95% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

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%

U

Software & Services industry group

16.95%

Max
46.89%
Q3
17.64%
U
16.95%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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IBM (IBM) vs. Unity Software (U): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for IBM (IBM) and Unity Software (U)
MetricIBMU
ROE (TTM)34.77%-9.66%
ROA (TTM)5.33%-0.45%
Net Margin (TTM)15.99%-15.60%
Operating Margin (TTM)16.97%16.95%
Gross Margin (TTM)57.97%78.49%

Growth

Revenue Growth

IBM (IBM) at 7.62% is around its peer norm for revenue growth, while Unity Software (U) at 2.01% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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

EPS Growth

Only one side can be read here: IBM (IBM) reports EPS growth of 73.72%, ranked against its industry; Unity Software (U) has no EPS growth figure this period.

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

Growth Metrics

Growth metrics for IBM (IBM) and Unity Software (U)
MetricIBMU
Revenue Growth (YoY)7.62%2.01%
Revenue Growth (3Y CAGR)3.72%9.96%
EPS Growth (YoY)73.72%--
EPS Growth (3Y CAGR)83.76%--

Financial Strength

Current Ratio (MRQ)

Unity Software (U) at 2.17 keeps current ratio within its industry’s typical mid-range, while IBM (IBM) at 0.86 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for IBM.

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

U

Software & Services industry group

2.17

Max
5.11
Q3
2.77
U
2.17
Median
1.67
Q1
1.01
Min
0.03
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IBM (IBM) vs. Unity Software (U): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Unity Software (U) at 0.66 carries an industry-typical debt-to-equity mix, while IBM (IBM) at 1.85 uses more debt funding than most peers.

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

U

Software & Services industry group

0.66

Max
2.52
Q3
1.13
U
0.66
Median
0.40
Q1
0.07
Min
0.00
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IBM (IBM) vs. Unity Software (U): 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 Unity Software (U)
MetricIBMU
Current Ratio (MRQ)0.862.17
Debt / Equity (MRQ)1.850.66
Net Debt / EBITDA3.37-0.86

Dividends

Dividend Yield (TTM)

Unity Software (U) 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%

U

Software & Services industry group

0.00%

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

Dividend Payout Ratio (TTM)

Unity Software (U) 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%

U

Software & Services industry group

0.00%

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

Dividend Metrics

Dividend metrics for IBM (IBM) and Unity Software (U)
MetricIBMU
Dividend Yield (TTM)2.73%0.00%
Dividend Payout Ratio (TTM)57.51%0.00%

Valuation

P/E Ratio (TTM)

An earnings multiple is available for just one side: IBM (IBM) trades at 20.90 times trailing earnings, ranked against its peers, while Unity Software (U) has no P/E ratio this period.

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

U

Software & Services industry group

--

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69
U
--
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IBM (IBM) vs. Unity Software (U): U does not report P/E ratio, so it has no value marker; IBM is benchmarked against the Software & Services industry group.

P/S Ratio (TTM)

IBM (IBM) at 3.31 is priced about in line with its industry on P/S ratio, while Unity Software (U) at 10.48 sits in the pricier quartile — U 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

U

Software & Services industry group

10.48

Max
17.91
U
10.48
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
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IBM (IBM) vs. Unity Software (U): 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 6.52 and Unity Software (U) at 7.03 are valued close to their industries’ norm against book — neither stands out from peers.

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

U

Software & Services industry group

7.03

Max
16.63
Q3
8.50
U
7.03
Median
4.30
Q1
1.92
Min
-3.90
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IBM (IBM) vs. Unity Software (U): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for IBM (IBM) and Unity Software (U)
MetricIBMU
P/E Ratio (TTM)20.90--
P/S Ratio (TTM)3.3110.48
P/B Ratio (MRQ)6.527.03
Free Cash Flow Yield (TTM)5.34%2.76%