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

Updated on August 25, 2025

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

Company Profile

Symbol	IBM	XYZ
Company Name	International Business Machines Corporation	Block, Inc.
Country	United States	United States
GICS Sector	Information Technology	Financials
GICS Industry	IT Services	Financial Services
Market Capitalization	225.94 billion USD	45.22 billion USD
Exchange	NYSE	NYSE
Listing Date	January 2, 1962	November 19, 2015
Security Type	Common Stock	Common Stock

Historical Performance

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

Historical Performance at a Glance

Symbol	IBM	XYZ
5-Day Price Return	2.29%	-2.45%
13-Week Price Return	-9.63%	27.17%
26-Week Price Return	-6.42%	-11.99%
52-Week Price Return	24.56%	10.92%
Month-to-Date Return	-4.19%	-3.99%
Year-to-Date Return	10.34%	-12.72%
10-Day Avg. Volume	5.60M	9.56M
3-Month Avg. Volume	4.60M	10.93M
3-Month Volatility	24.47%	40.28%
Beta	0.69	2.77

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.

XYZ

13.95%

Financial Services Industry

Max: 40.58%
Q3: 20.06%
Median: 10.67%
Q1: 4.19%
Min: -10.31%

XYZ’s Return on Equity of 13.95% is on par with the norm for the Financial Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

XYZ

12.41%

Financial Services Industry

Max: 52.86%
Q3: 25.58%
Median: 12.23%
Q1: 6.64%
Min: -9.92%

XYZ’s Net Profit Margin of 12.41% is aligned with the median group of its peers in the Financial Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

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

XYZ

4.82%

Financial Services Industry

Max: 77.28%
Q3: 37.68%
Median: 18.17%
Q1: 9.27%
Min: -8.19%

XYZ’s Operating Profit Margin of 4.82% is in the lower quartile for the Financial Services industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

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

Profitability at a Glance

Symbol	IBM	XYZ
Return on Equity (TTM)	21.99%	13.95%
Return on Assets (TTM)	4.12%	8.08%
Net Profit Margin (TTM)	9.11%	12.41%
Operating Profit Margin (TTM)	9.77%	4.82%
Gross Profit Margin (TTM)	57.57%	39.38%

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.

XYZ

1.96

Financial Services Industry

Max: 4.58
Q3: 2.59
Median: 1.33
Q1: 0.69
Min: 0.01

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

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

XYZ

0.26

Financial Services Industry

Max: 4.96
Q3: 2.10
Median: 0.57
Q1: 0.12
Min: 0.00

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

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

XYZ

12.18

Financial Services Industry

Max: 136.23
Q3: 56.08
Median: 6.55
Q1: 2.01
Min: -33.27

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

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

Financial Strength at a Glance

Symbol	IBM	XYZ
Current Ratio (MRQ)	0.91	1.96
Quick Ratio (MRQ)	0.80	1.92
Debt-to-Equity Ratio (MRQ)	2.33	0.26
Interest Coverage Ratio (TTM)	45.57	12.18

Growth

Revenue Growth

IBM vs. XYZ: 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. XYZ: 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.

XYZ

0.00%

Financial Services Industry

Max: 8.18%
Q3: 3.60%
Median: 1.56%
Q1: 0.00%
Min: 0.00%

XYZ 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. XYZ: A comparison of their Dividend Yield (TTM) against their respective IT Services and Financial Services 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.

XYZ

0.00%

Financial Services Industry

Max: 155.56%
Q3: 63.71%
Median: 18.08%
Q1: 0.00%
Min: 0.00%

XYZ 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. XYZ: A comparison of their Dividend Payout Ratio (TTM) against their respective IT Services and Financial Services industry benchmarks.

Dividend at a Glance

Symbol	IBM	XYZ
Dividend Yield (TTM)	2.76%	0.00%
Dividend Payout Ratio (TTM)	75.57%	0.00%

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.

XYZ

16.06

Financial Services Industry

Max: 63.23
Q3: 32.10
Median: 14.41
Q1: 10.81
Min: 0.37

XYZ’s P/E Ratio of 16.06 is within the middle range for the Financial Services 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. XYZ: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Financial Services 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.

XYZ

1.99

Financial Services Industry

Max: 11.16
Q3: 5.45
Median: 2.61
Q1: 1.25
Min: 0.04

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

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

XYZ

1.89

Financial Services Industry

Max: 7.09
Q3: 3.79
Median: 1.46
Q1: 0.83
Min: 0.04

XYZ’s P/B Ratio of 1.89 is within the conventional range for the Financial Services 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. XYZ: A comparison of their Price-to-Book Ratio (MRQ) against their respective IT Services and Financial Services industry benchmarks.

Valuation at a Glance

Symbol	IBM	XYZ
Price-to-Earnings Ratio (TTM)	38.56	16.06
Price-to-Sales Ratio (TTM)	3.51	1.99
Price-to-Book Ratio (MRQ)	9.96	1.89
Price-to-Free Cash Flow Ratio (TTM)	19.13	44.30