International Business Machines (IBM)vsOracle Corporation (ORCL)
IBM
International Business Machines
$235.90
+0.32%
TECHNOLOGY · Cap: $193.40B
ORCL
Oracle Corporation
$144.38
-0.93%
TECHNOLOGY · Cap: $365.96B
Smart Verdict
WallStSmart Research — data-driven comparison
International Business Machines generates 2% more annual revenue ($68.91B vs $67.36B). ORCL leads profitability with a 25.4% profit margin vs 15.6%. ORCL appears more attractively valued with a PEG of 0.72. ORCL earns a higher WallStSmart Score of 76/100 (B+).
IBM
Buy59
out of 100
Grade: C
ORCL
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.3%
Fair Value
$130.59
Current Price
$235.90
$105.31 premium
Margin of Safety
-14.1%
Fair Value
$105.05
Current Price
$144.38
$39.33 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 31 in profit
Large-cap with strong market position
Generating 2.2B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 40 in profit
Strong operational efficiency at 36.2%
Keeps 25 of every $100 in revenue as profit
Growing faster than its price suggests
Revenue surging 20.6% year-over-year
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Trading at 11.1x book value
Weak financial health signals
Negative free cash flow — burning cash
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : IBM
The strongest argument for IBM centers on Return on Equity, Market Cap, Free Cash Flow. Profitability is solid with margins at 15.6% and operating margin at 13.8%.
Bull Case : ORCL
The strongest argument for ORCL centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 25.4% and operating margin at 36.2%. Revenue growth of 20.6% demonstrates continued momentum.
Bear Case : IBM
The primary concerns for IBM are PEG Ratio, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.89 is elevated, increasing financial risk.
Bear Case : ORCL
The primary concerns for ORCL are Price/Book, Piotroski F-Score, Free Cash Flow. Debt-to-equity of 3.67 is elevated, increasing financial risk.
Key Dynamics to Monitor
IBM profiles as a mature stock while ORCL is a growth play — different risk/reward profiles.
ORCL carries more volatility with a beta of 1.71 — expect wider price swings.
ORCL is growing revenue faster at 20.6% — sustainability is the question.
IBM generates stronger free cash flow (2.2B), providing more financial flexibility.
Bottom Line
ORCL scores higher overall (76/100 vs 59/100), backed by strong 25.4% margins and 20.6% 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 →Oracle Corporation
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Oracle is an American multinational computer technology corporation headquartered in Austin, Texas. The company was formerly headquartered in Redwood Shores, California until December 2020 when it moved its headquarters to Texas. The company sells database software and technology, cloud engineered systems, and enterprise software products, particularly its own brands of database management systems.
Visit Website →Compare with Other INFORMATION TECHNOLOGY SERVICES Stocks
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