Fidelity National Information Services Inc (FIS)vsInternational Business Machines (IBM)
FIS
Fidelity National Information Services Inc
$36.43
-1.14%
TECHNOLOGY · Cap: $20.33B
IBM
International Business Machines
$237.75
+0.11%
TECHNOLOGY · Cap: $229.21B
Smart Verdict
WallStSmart Research — data-driven comparison
International Business Machines generates 466% more annual revenue ($69.09B vs $12.20B). FIS leads profitability with a 27.7% profit margin vs 15.5%. FIS appears more attractively valued with a PEG of 0.22. FIS earns a higher WallStSmart Score of 89/100 (A).
FIS
Exceptional Buy89
out of 100
Grade: A
IBM
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+12.9%
Fair Value
$55.47
Current Price
$36.43
$19.04 discount
Margin of Safety
-80.1%
Fair Value
$132.02
Current Price
$237.75
$105.73 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 3041.0% YoY
Every $100 of equity generates 21 in profit
Keeps 28 of every $100 in revenue as profit
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Generating 2.4B in free cash flow
Areas to Watch
Elevated debt levels
Distress zone — elevated risk
Expensive relative to growth rate
1.1% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : FIS
The strongest argument for FIS centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 27.7% and operating margin at 20.7%. Revenue growth of 29.1% demonstrates continued momentum.
Bull Case : IBM
The strongest argument for IBM centers on Market Cap, Return on Equity, Free Cash Flow. Profitability is solid with margins at 15.5% and operating margin at 16.6%.
Bear Case : FIS
The primary concerns for FIS are Debt/Equity, Altman Z-Score.
Bear Case : IBM
The primary concerns for IBM are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.89 is elevated, increasing financial risk.
Key Dynamics to Monitor
FIS profiles as a growth stock while IBM is a value play — different risk/reward profiles.
FIS carries more volatility with a beta of 0.80 — expect wider price swings.
FIS is growing revenue faster at 29.1% — sustainability is the question.
IBM generates stronger free cash flow (2.4B), providing more financial flexibility.
Bottom Line
FIS scores higher overall (89/100 vs 54/100), backed by strong 27.7% margins and 29.1% revenue growth. Both earn "Exceptional Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Fidelity National Information Services Inc
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
FIS is an American Fortune 500 company which offers a wide range of financial products and services. Headquartered in Jacksonville, Florida, FIS employs approximately 63,000 people worldwide. FIS is most known for its development of Financial Technology, or FinTech, and as of Q2 2020 it offers its solutions in three primary segments: Merchant Solutions, Banking Solutions, and Capital Market Solutions.
International Business Machines
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
International Business Machines Corporation (IBM) is an American multinational technology company headquartered in Armonk, New York, with operations in over 170 countries. The company began in 1911, founded in Endicott, New York, as the Computing-Tabulating-Recording Company (CTR) and was renamed International Business Machines in 1924. IBM is incorporated in New York. IBM produces and sells computer hardware, middleware and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. IBM is also a major research organization, holding the record for most annual U.S. patents generated by a business (as of 2020) for 28 consecutive years. Inventions by IBM include the automated teller machine (ATM), the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the SQL programming language, the UPC barcode, and dynamic random-access memory (DRAM). The IBM mainframe, exemplified by the System/360, was the dominant computing platform during the 1960s and 1970s.
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