IBM vs. ZM: IBM vs. Zoom Communications Stock Comparison
How do IBM (IBM) and Zoom Communications (ZM) 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 Zoom Communications (ZM) both fall under the Software & Services industry group, but IBM is classified in IT Services while ZM is classified in Software.
| Profile Item | IBM | ZM |
|---|---|---|
| Name | International Business Machines Corporation | Zoom Communications, Inc. Class A Common Stock |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | IT Services | Software |
| GICS Sub-Industry | IT Consulting & Other Services | Application Software |
| Market Capitalization | 231.55 billion USD | 26.23 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | January 2, 1962 | April 18, 2019 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | IBM | ZM |
|---|---|---|
| Total Return (1Y) | -16.98% | 12.58% |
| Total Return (3Y, Annualized) | 22.40% | 14.89% |
| Total Return (5Y, Annualized) | 19.64% | -18.67% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | IBM | ZM |
|---|---|---|
| Volatility (1Y, Annualized) | 48.48% | 45.03% |
| Beta (5Y) | 0.79 | 0.99 |
| Max Drawdown (5Y) | -37.50% | -79.08% |
| Avg. Volume (3M) | 5.30M | 2.88M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | IBM | ZM |
|---|---|---|
| Sharpe Ratio (1Y) | -0.44 | 0.18 |
| Sortino Ratio (1Y) | -0.56 | 0.28 |
Profitability
ROE (TTM)
Both IBM (IBM) at 34.77% and Zoom Communications (ZM) at 32.14% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.
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%
ZM
Software & Services industry group
32.14%
- Max
- 53.85%
- ZM
- 32.14%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
Zoom Communications (ZM) at 65.19% keeps the most of each sales dollar — above its industry’s net margin range — and IBM (IBM) at 15.99% also retains a top-quartile share.
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%
ZM
Software & Services industry group
65.19%
- ZM
- 65.19%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Zoom Communications (ZM) at 24.61% operates in the top operating margin quartile, ahead of IBM (IBM) at 16.97%, which runs around its industry’s norm.
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%
ZM
Software & Services industry group
24.61%
- Max
- 46.89%
- ZM
- 24.61%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | IBM | ZM |
|---|---|---|
| ROE (TTM) | 34.77% | 32.14% |
| ROA (TTM) | 5.33% | 6.11% |
| Net Margin (TTM) | 15.99% | 65.19% |
| Operating Margin (TTM) | 16.97% | 24.61% |
| Gross Margin (TTM) | 57.97% | 77.66% |
Growth
Revenue Growth
IBM (IBM) at 7.62% is around its peer norm for revenue growth, while Zoom Communications (ZM) at 4.36% drops into the bottom quartile, signaling weaker demand or pricing momentum.
EPS Growth
Both IBM (IBM) at 73.72% and Zoom Communications (ZM) at 92.52% sit in the top peer quartile for EPS growth, so each is compounding per-share earnings faster than typical industry peers.
Growth Metrics
| Metric | IBM | ZM |
|---|---|---|
| Revenue Growth (YoY) | 7.62% | 4.36% |
| Revenue Growth (3Y CAGR) | 3.72% | 3.49% |
| EPS Growth (YoY) | 73.72% | 92.52% |
| EPS Growth (3Y CAGR) | 83.76% | 162.93% |
Financial Strength
Current Ratio (MRQ)
Zoom Communications (ZM) at 3.83 carries current ratio above its industry’s typical mid-range, while IBM (IBM) at 0.86 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.
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
ZM
Software & Services industry group
3.83
- Max
- 5.11
- ZM
- 3.83
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Zoom Communications (ZM) at 0.01 keeps leverage in the lower quartile, while IBM (IBM) at 1.85 sits in the higher-leverage quartile.
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
ZM
Software & Services industry group
0.01
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- ZM
- 0.01
- Min
- 0.00
Financial Strength Metrics
| Metric | IBM | ZM |
|---|---|---|
| Current Ratio (MRQ) | 0.86 | 3.83 |
| Debt / Equity (MRQ) | 1.85 | 0.01 |
| Net Debt / EBITDA | 3.37 | -5.39 |
Dividends
Dividend Yield (TTM)
Zoom Communications (ZM) 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%
ZM
Software & Services industry group
0.00%
- ZM
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Zoom Communications (ZM) 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%
ZM
Software & Services industry group
0.00%
- ZM
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | IBM | ZM |
|---|---|---|
| Dividend Yield (TTM) | 2.73% | 0.00% |
| Dividend Payout Ratio (TTM) | 57.51% | 0.00% |
Valuation
P/E Ratio (TTM)
Zoom Communications (ZM) at 8.34 sits in the cheaper P/E ratio quartile, while IBM (IBM) at 20.90 is closer to its industry’s usual earnings multiple — a discount for ZM, though growth and earnings durability still matter.
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
ZM
Software & Services industry group
8.34
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- ZM
- 8.34
- Min
- 6.69
P/S Ratio (TTM)
On P/S ratio, both IBM (IBM) at 3.31 and Zoom Communications (ZM) at 5.25 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.
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
ZM
Software & Services industry group
5.25
- Max
- 17.91
- Q3
- 8.78
- ZM
- 5.25
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
On P/B ratio, both IBM (IBM) at 6.52 and Zoom Communications (ZM) at 2.32 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
ZM
Software & Services industry group
2.32
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- ZM
- 2.32
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | IBM | ZM |
|---|---|---|
| P/E Ratio (TTM) | 20.90 | 8.34 |
| P/S Ratio (TTM) | 3.31 | 5.25 |
| P/B Ratio (MRQ) | 6.52 | 2.32 |
| Free Cash Flow Yield (TTM) | 5.34% | 7.53% |