International Business Machines (IBM)vsThe Coca-Cola Company (KO)
IBM
International Business Machines
$229.76
+0.06%
TECHNOLOGY · Cap: $217.40B
KO
The Coca-Cola Company
$78.42
-0.01%
CONSUMER DEFENSIVE · Cap: $337.40B
Smart Verdict
WallStSmart Research — data-driven comparison
International Business Machines generates 40% more annual revenue ($68.91B vs $49.28B). KO leads profitability with a 27.8% profit margin vs 15.6%. IBM appears more attractively valued with a PEG of 2.11. KO earns a higher WallStSmart Score of 65/100 (B-).
IBM
Buy60
out of 100
Grade: C
KO
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-29.8%
Fair Value
$178.18
Current Price
$229.76
$51.58 premium
Margin of Safety
-22.2%
Fair Value
$64.19
Current Price
$78.42
$14.23 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 36 in profit
Generating 4.8B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Strong operational efficiency at 35.1%
Keeps 28 of every $100 in revenue as profit
Generating 1.8B in free cash flow
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Elevated debt levels
Trading at 10.0x book value
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : IBM
The strongest argument for IBM centers on Market Cap, Return on Equity, Free Cash Flow. Profitability is solid with margins at 15.6% and operating margin at 13.8%.
Bull Case : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.8% and operating margin at 35.1%. Revenue growth of 12.1% demonstrates continued momentum.
Bear Case : IBM
The primary concerns for IBM are PEG Ratio, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.06 is elevated, increasing financial risk.
Bear Case : KO
The primary concerns for KO are Price/Book, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
IBM carries more volatility with a beta of 0.58 — expect wider price swings.
KO is growing revenue faster at 12.1% — sustainability is the question.
IBM generates stronger free cash flow (4.8B), providing more financial flexibility.
Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
KO scores higher overall (65/100 vs 60/100), backed by strong 27.8% margins and 12.1% revenue growth. Both earn "Strong 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.
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.
Visit Website →The Coca-Cola Company
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
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