Broadridge Financial Solutions, Inc. (BR) vs International Business Machines Corporation (IBM)

Broadridge Financial Solutions, Inc. and International Business Machines Corporation are both Information Technology Services companies. International Business Machines Corporation is the larger, with a market value of $214.4B against $19.2B — 11.2× the size. Broadridge Financial Solutions, Inc. trades at the lower P/E: 16.9× against 19.7×. Broadridge Financial Solutions, Inc. grew revenue faster over the last twelve months: 8.53% against 7.90%. International Business Machines Corporation has the higher net margin (15.5% vs 15.0%) and the lower return on invested capital (7.86% vs 14.3%). Both pay a dividend; International Business Machines Corporation yields more (3.70% vs 1.59%). Across the 23 metrics below, Broadridge Financial Solutions, Inc. leads on 15 and International Business Machines Corporation on 8.

Valuation

Metric BR IBM Information Technology Services median
P/E 16.90 19.70 14.63
P/S 2.55 3.07 1.13
P/B 6.71 6.14 2.10
Price to free cash flow 15.97 15.35 10.11
EV/EBITDA 12.38 16.31 8.56
EV/Sales 3.00 3.85 1.20
Earnings yield 5.92% 5.08% 4.56%
Free cash flow yield 6.26% 6.52% 4.37%

Profitability

Metric BR IBM Information Technology Services median
Gross margin 31.78% 58.10% 31.05%
Operating margin 17.40% 16.08% 3.30%
Net margin 15.04% 15.52% 2.09%
Free cash flow margin 16.49% 20.02% 0.00%
Return on equity 40.91% 34.52% 4.12%
Return on assets 12.86% 7.13% 0.61%
Return on invested capital 14.28% 7.86% 0.57%

Growth

Metric BR IBM Information Technology Services median
Revenue growth (TTM) 8.53% 7.90% 7.12%
EPS growth (last fiscal year) 35.21% 73.72% —
Revenue growth, 5-year CAGR 8.41% 4.12% 7.71%
Net income growth, 5-year CAGR 15.48% 13.64% 0.00%

Health

Metric BR IBM Information Technology Services median
Debt to equity 1.15 1.79 0.45
Current ratio 1.24 0.79 1.66
Net debt to EBITDA 1.58 2.95 0.44

Dividend

Metric BR IBM Information Technology Services median
Dividend yield 1.59% 3.70% 1.21%
Payout ratio 0.55 2.81 0.00

Size

Metric BR IBM Information Technology Services median
Market cap 19.15b 214.41b 1.36b

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