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

Updated on August 26, 2025

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

Company Profile

Symbol	IBM	WFC
Company Name	International Business Machines Corporation	Wells Fargo & Company
Country	United States	United States
GICS Sector	Information Technology	Financials
GICS Industry	IT Services	Banks
Market Capitalization	225.94 billion USD	250.38 billion USD
Exchange	NYSE	NYSE
Listing Date	January 2, 1962	June 1, 1972
Security Type	Common Stock	Common Stock

Historical Performance

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

Historical Performance at a Glance

Symbol	IBM	WFC
5-Day Price Return	2.29%	-1.57%
13-Week Price Return	-9.63%	2.76%
26-Week Price Return	-6.42%	-0.88%
52-Week Price Return	24.56%	38.46%
Month-to-Date Return	-4.19%	-3.06%
Year-to-Date Return	10.34%	11.28%
10-Day Avg. Volume	5.60M	13.57M
3-Month Avg. Volume	4.60M	17.24M
3-Month Volatility	24.47%	24.23%
Beta	0.69	1.27

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.

WFC

11.36%

Banks Industry

Max: 26.37%
Q3: 15.92%
Median: 12.25%
Q1: 8.69%
Min: 0.15%

WFC’s Return on Equity of 11.36% is on par with the norm for the Banks industry, indicating its profitability relative to shareholder equity is typical for the sector.

IBM vs. WFC: A comparison of their Return on Equity (TTM) against their respective IT Services and Banks 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.

WFC

22.19%

Banks Industry

Max: 54.20%
Q3: 35.70%
Median: 28.97%
Q1: 22.53%
Min: 6.98%

Falling into the lower quartile for the Banks industry, WFC’s Net Profit Margin of 22.19% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

IBM vs. WFC: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Banks 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.

WFC

25.35%

Banks Industry

Max: 63.35%
Q3: 44.59%
Median: 37.24%
Q1: 28.25%
Min: 13.37%

WFC’s Operating Profit Margin of 25.35% is in the lower quartile for the Banks industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

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

Profitability at a Glance

Symbol	IBM	WFC
Return on Equity (TTM)	21.99%	11.36%
Return on Assets (TTM)	4.12%	1.06%
Net Profit Margin (TTM)	9.11%	22.19%
Operating Profit Margin (TTM)	9.77%	25.35%
Gross Profit Margin (TTM)	57.57%	--

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.

WFC

Banks Industry

Max: --
Q3: --
Median: --
Q1: --
Min: --

For the Banks industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

IBM vs. WFC: A comparison of their Current Ratio (MRQ) against their respective IT Services and Banks 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.

WFC

2.01

Banks Industry

Max: 4.75
Q3: 2.62
Median: 1.02
Q1: 0.39
Min: 0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Banks industry.

IBM vs. WFC: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Banks 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.

WFC

Banks Industry

Max: --
Q3: --
Median: --
Q1: --
Min: --

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks industry.

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

Financial Strength at a Glance

Symbol	IBM	WFC
Current Ratio (MRQ)	0.91	--
Quick Ratio (MRQ)	0.80	--
Debt-to-Equity Ratio (MRQ)	2.33	2.01
Interest Coverage Ratio (TTM)	45.57	--

Growth

Revenue Growth

IBM vs. WFC: 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. WFC: 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.

WFC

2.53%

Banks Industry

Max: 10.27%
Q3: 5.83%
Median: 3.81%
Q1: 2.50%
Min: 0.00%

WFC’s Dividend Yield of 2.53% is consistent with its peers in the Banks industry, providing a dividend return that is standard for its sector.

IBM vs. WFC: A comparison of their Dividend Yield (TTM) against their respective IT Services and Banks 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.

WFC

31.00%

Banks Industry

Max: 147.07%
Q3: 80.55%
Median: 54.40%
Q1: 35.71%
Min: 0.00%

WFC’s Dividend Payout Ratio of 31.00% is in the lower quartile for the Banks industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

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

Dividend at a Glance

Symbol	IBM	WFC
Dividend Yield (TTM)	2.76%	2.53%
Dividend Payout Ratio (TTM)	75.57%	31.00%

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.

WFC

12.27

Banks Industry

Max: 20.05
Q3: 12.65
Median: 10.21
Q1: 7.54
Min: 2.74

WFC’s P/E Ratio of 12.27 is within the middle range for the Banks 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. WFC: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Banks 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.

WFC

1.91

Banks Industry

Max: 5.06
Q3: 2.98
Median: 2.24
Q1: 1.59
Min: 0.45

The P/S Ratio is often not a primary valuation tool in the Banks industry.

IBM vs. WFC: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Banks 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.

WFC

1.42

Banks Industry

Max: 2.18
Q3: 1.36
Median: 1.09
Q1: 0.81
Min: 0.20

WFC’s P/B Ratio of 1.42 is in the upper tier for the Banks 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. WFC: A comparison of their Price-to-Book Ratio (MRQ) against their respective IT Services and Banks industry benchmarks.

Valuation at a Glance

Symbol	IBM	WFC
Price-to-Earnings Ratio (TTM)	38.56	12.27
Price-to-Sales Ratio (TTM)	3.51	1.91
Price-to-Book Ratio (MRQ)	9.96	1.42
Price-to-Free Cash Flow Ratio (TTM)	19.13	16.66