International Business Machines (IBM)vsMeta Platforms Inc. (META)
IBM
International Business Machines
$229.76
+0.06%
TECHNOLOGY · Cap: $217.40B
META
Meta Platforms Inc.
$609.63
-1.16%
COMMUNICATION SERVICES · Cap: $1.57T
Smart Verdict
WallStSmart Research — data-driven comparison
Meta Platforms Inc. generates 212% more annual revenue ($214.96B vs $68.91B). META leads profitability with a 32.8% profit margin vs 15.6%. META appears more attractively valued with a PEG of 0.93. META earns a higher WallStSmart Score of 83/100 (A-).
IBM
Buy60
out of 100
Grade: C
META
Exceptional Buy83
out of 100
Grade: A-
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
+33.9%
Fair Value
$933.07
Current Price
$609.63
$323.44 discount
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 33 in profit
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 40.6%
Revenue surging 33.1% year-over-year
Earnings expanding 62.4% YoY
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Elevated debt levels
Weak financial health signals
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 : META
The strongest argument for META centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 32.8% and operating margin at 40.6%. Revenue growth of 33.1% 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 : META
The primary concerns for META are Piotroski F-Score.
Key Dynamics to Monitor
IBM profiles as a mature stock while META is a growth play — different risk/reward profiles.
META carries more volatility with a beta of 1.24 — expect wider price swings.
META is growing revenue faster at 33.1% — sustainability is the question.
META generates stronger free cash flow (13.2B), providing more financial flexibility.
Bottom Line
META scores higher overall (83/100 vs 60/100), backed by strong 32.8% margins and 33.1% 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.
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 →Meta Platforms Inc.
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Meta Platforms, Inc. develops products that enable people to connect and share with friends and family through mobile devices, PCs, virtual reality headsets, wearables and home devices around the world. The company is headquartered in Menlo Park, California.
Visit Website →Compare with Other INFORMATION TECHNOLOGY SERVICES Stocks
Want to dig deeper into these stocks?