International Business Machines (IBM)vsMoodys Corporation (MCO)
IBM
International Business Machines
$241.39
+0.16%
TECHNOLOGY · Cap: $225.77B
MCO
Moodys Corporation
$428.05
+1.02%
FINANCIAL SERVICES · Cap: $76.27B
Smart Verdict
WallStSmart Research — data-driven comparison
International Business Machines generates 775% more annual revenue ($67.53B vs $7.72B). MCO leads profitability with a 31.9% profit margin vs 15.7%. MCO appears more attractively valued with a PEG of 1.93. MCO earns a higher WallStSmart Score of 71/100 (B).
IBM
Strong Buy70
out of 100
Grade: B-
MCO
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+53.7%
Fair Value
$521.35
Current Price
$241.39
$279.96 discount
Margin of Safety
+33.1%
Fair Value
$639.76
Current Price
$428.05
$211.71 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Earnings expanding 89.9% YoY
Strong operational efficiency at 24.8%
Generating 3.1B in free cash flow
Every $100 of equity generates 62 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 42.1%
Earnings expanding 57.6% YoY
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Elevated debt levels
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 18.7x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : IBM
The strongest argument for IBM centers on Market Cap, Return on Equity, EPS Growth. Profitability is solid with margins at 15.7% and operating margin at 24.8%. Revenue growth of 12.2% demonstrates continued momentum.
Bull Case : MCO
The strongest argument for MCO centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 31.9% and operating margin at 42.1%. Revenue growth of 13.0% 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 : MCO
The primary concerns for MCO are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
MCO carries more volatility with a beta of 1.44 — expect wider price swings.
MCO is growing revenue faster at 13.0% — sustainability is the question.
IBM generates stronger free cash flow (3.1B), providing more financial flexibility.
Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MCO scores higher overall (71/100 vs 70/100), backed by strong 31.9% margins and 13.0% revenue growth. IBM offers better value entry with a 53.7% margin of safety. Both earn "Strong Buy" and "Strong 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 →Moodys Corporation
FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA
Moody's Corporation, often referred to as Moody's, is an American business and financial services company. It is the holding company for Moody's Investors Service (MIS), an American credit rating agency, and Moody's Analytics (MA), an American provider of financial analysis software and services.
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