IBM vs. UBER: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at IBM and UBER, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | IBM | UBER |
|---|---|---|
| Company Name | International Business Machines Corporation | Uber Technologies, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Industrials |
| GICS Industry | IT Services | Ground Transportation |
| Market Capitalization | 288.95 billion USD | 195.52 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | January 2, 1962 | May 10, 2019 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of IBM and UBER 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.
Historical Performance at a Glance
| Symbol | IBM | UBER |
|---|---|---|
| 5-Day Price Return | 2.75% | -0.60% |
| 13-Week Price Return | 30.82% | 3.89% |
| 26-Week Price Return | 22.01% | 12.49% |
| 52-Week Price Return | 44.66% | 28.68% |
| Month-to-Date Return | 0.56% | -2.49% |
| Year-to-Date Return | 40.62% | 56.00% |
| 10-Day Avg. Volume | 5.27M | 20.61M |
| 3-Month Avg. Volume | 5.41M | 17.38M |
| 3-Month Volatility | 27.62% | 30.01% |
| Beta | 0.68 | 1.20 |
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.
UBER
70.61%
Ground Transportation Industry
- Max
- 23.35%
- Q3
- 13.74%
- Median
- 9.05%
- Q1
- 6.86%
- Min
- 1.73%
UBER’s Return on Equity of 70.61% is exceptionally high, placing it well beyond the typical range for the Ground Transportation industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
UBER
33.54%
Ground Transportation Industry
- Max
- 32.19%
- Q3
- 17.08%
- Median
- 7.19%
- Q1
- 4.45%
- Min
- -5.54%
UBER’s Net Profit Margin of 33.54% is exceptionally high, placing it well beyond the typical range for the Ground Transportation industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
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.
UBER
8.72%
Ground Transportation Industry
- Max
- 42.90%
- Q3
- 23.80%
- Median
- 10.93%
- Q1
- 7.06%
- Min
- -12.94%
UBER’s Operating Profit Margin of 8.72% is around the midpoint for the Ground Transportation industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | IBM | UBER |
|---|---|---|
| Return on Equity (TTM) | 28.86% | 70.61% |
| Return on Assets (TTM) | 5.48% | 29.80% |
| Net Profit Margin (TTM) | 12.09% | 33.54% |
| Operating Profit Margin (TTM) | 14.51% | 8.72% |
| Gross Profit Margin (TTM) | 57.81% | 34.15% |
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.
UBER
1.15
Ground Transportation Industry
- Max
- 2.00
- Q3
- 1.31
- Median
- 0.98
- Q1
- 0.74
- Min
- 0.35
UBER’s Current Ratio of 1.15 aligns with the median group of the Ground Transportation industry, indicating that its short-term liquidity is in line with its sector peers.
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.
UBER
0.42
Ground Transportation Industry
- Max
- 2.51
- Q3
- 1.48
- Median
- 1.02
- Q1
- 0.48
- Min
- 0.00
Falling into the lower quartile for the Ground Transportation industry, UBER’s Debt-to-Equity Ratio of 0.42 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
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.
UBER
-0.24
Ground Transportation Industry
- Max
- 59.80
- Q3
- 25.78
- Median
- 8.23
- Q1
- 2.52
- Min
- -24.57
UBER has a negative Interest Coverage Ratio of -0.24. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | IBM | UBER |
|---|---|---|
| Current Ratio (MRQ) | 0.93 | 1.15 |
| Quick Ratio (MRQ) | 0.81 | 1.12 |
| Debt-to-Equity Ratio (MRQ) | 2.26 | 0.42 |
| Interest Coverage Ratio (TTM) | 45.57 | -0.24 |
Growth
Revenue Growth
EPS Growth
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.
UBER
0.00%
Ground Transportation Industry
- Max
- 5.29%
- Q3
- 2.57%
- Median
- 1.59%
- Q1
- 0.71%
- Min
- 0.00%
UBER 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.
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.
UBER
0.00%
Ground Transportation Industry
- Max
- 149.12%
- Q3
- 75.08%
- Median
- 41.35%
- Q1
- 16.42%
- Min
- 0.00%
UBER 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.
Dividend at a Glance
| Symbol | IBM | UBER |
|---|---|---|
| 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.
UBER
11.73
Ground Transportation Industry
- Max
- 39.04
- Q3
- 24.45
- Median
- 17.51
- Q1
- 12.92
- Min
- 5.87
In the lower quartile for the Ground Transportation industry, UBER’s P/E Ratio of 11.73 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
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.
UBER
3.94
Ground Transportation Industry
- Max
- 2.82
- Q3
- 2.22
- Median
- 1.41
- Q1
- 0.88
- Min
- 0.24
With a P/S Ratio of 3.94, UBER trades at a valuation that eclipses even the highest in the Ground Transportation industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
UBER
7.26
Ground Transportation Industry
- Max
- 5.27
- Q3
- 3.03
- Median
- 1.40
- Q1
- 1.18
- Min
- 0.67
At 7.26, UBER’s P/B Ratio is at an extreme premium to the Ground Transportation industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | IBM | UBER |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 36.28 | 11.73 |
| Price-to-Sales Ratio (TTM) | 4.39 | 3.94 |
| Price-to-Book Ratio (MRQ) | 9.42 | 7.26 |
| Price-to-Free Cash Flow Ratio (TTM) | 23.96 | 22.54 |