Fidelity National Information Services, Inc. (FIS) vs International Business Machines Corporation (IBM)

Fidelity National Information Services, 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 $18.0B — 11.9× the size. Fidelity National Information Services, Inc. trades at the lower P/E: 5.4× against 19.7×. Fidelity National Information Services, Inc. grew revenue faster over the last twelve months: 18.3% against 7.90%. Fidelity National Information Services, Inc. has the higher net margin (27.6% vs 15.5%) and the lower return on invested capital (3.71% vs 7.86%). Both pay a dividend; International Business Machines Corporation yields more (3.70% vs 3.39%). Across the 23 metrics below, Fidelity National Information Services, Inc. leads on 14 and International Business Machines Corporation on 9.

Valuation

Metric FIS IBM Information Technology Services median
P/E 5.41 19.70 14.63
P/S 1.50 3.07 1.13
P/B 1.14 6.14 2.10
Price to free cash flow 9.51 15.35 10.11
EV/EBITDA 8.23 16.31 8.56
EV/Sales 2.83 3.85 1.20
Earnings yield 18.47% 5.08% 4.56%
Free cash flow yield 10.51% 6.52% 4.37%

Profitability

Metric FIS IBM Information Technology Services median
Gross margin 35.96% 58.10% 31.05%
Operating margin 15.70% 16.08% 3.30%
Net margin 27.64% 15.52% 2.09%
Free cash flow margin 15.74% 20.02% 0.00%
Return on equity 22.32% 34.52% 4.12%
Return on assets 8.70% 7.13% 0.61%
Return on invested capital 3.71% 7.86% 0.57%

Growth

Metric FIS IBM Information Technology Services median
Revenue growth (TTM) 18.26% 7.90% 7.12%
EPS growth (last fiscal year) (72.03%) 73.72% —
Revenue growth, 5-year CAGR (3.18%) 4.12% 7.71%
Net income growth, 5-year CAGR 19.31% 13.64% 0.00%

Health

Metric FIS IBM Information Technology Services median
Debt to equity 1.06 1.79 0.45
Current ratio 0.53 0.79 1.66
Net debt to EBITDA 2.66 2.95 0.44

Dividend

Metric FIS IBM Information Technology Services median
Dividend yield 3.39% 3.70% 1.21%
Payout ratio 1.18 2.81 0.00

Size

Metric FIS IBM Information Technology Services median
Market cap 18.04b 214.41b 1.36b

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