International Business Machines Corporation (IBM) vs Wipro Limited (WIT)

International Business Machines Corporation and Wipro Limited are both Information Technology Services companies. International Business Machines Corporation is the larger, with a market value of $214.4B against $16.4B — 13.1× the size. Wipro Limited trades at the lower P/E: 13.8× against 19.7×. International Business Machines Corporation grew revenue faster over the last twelve months: 7.90% against −4.81%. International Business Machines Corporation has the higher net margin (15.5% vs 13.9%) and the lower return on invested capital (7.86% vs 17.0%). Both pay a dividend; International Business Machines Corporation yields more (3.70% vs 1.02%). Across the 23 metrics below, Wipro Limited leads on 14 and International Business Machines Corporation on 9.

Valuation

Metric IBM WIT Information Technology Services median
P/E 19.70 13.83 14.63
P/S 3.07 1.75 1.13
P/B 6.14 2.10 2.10
Price to free cash flow 15.35 13.30 10.11
EV/EBITDA 16.31 7.78 8.56
EV/Sales 3.85 1.52 1.20
Earnings yield 5.08% 7.23% 4.56%
Free cash flow yield 6.52% 7.52% 4.37%

Profitability

Metric IBM WIT Information Technology Services median
Gross margin 58.10% 29.04% 31.05%
Operating margin 16.08% 16.29% 3.30%
Net margin 15.52% 13.91% 2.09%
Free cash flow margin 20.02% 13.14% 0.00%
Return on equity 34.52% 14.97% 4.12%
Return on assets 7.13% 9.42% 0.61%
Return on invested capital 7.86% 17.04% 0.57%

Growth

Metric IBM WIT Information Technology Services median
Revenue growth (TTM) 7.90% (4.81%) 7.12%
EPS growth (last fiscal year) 73.72% (7.14%) —
Revenue growth, 5-year CAGR 4.12% (1.09%) 7.71%
Net income growth, 5-year CAGR 13.64% (2.66%) 0.00%

Health

Metric IBM WIT Information Technology Services median
Debt to equity 1.79 0.23 0.45
Current ratio 0.79 1.67 1.66
Net debt to EBITDA 2.95 (2.08) 0.44

Dividend

Metric IBM WIT Information Technology Services median
Dividend yield 3.70% 1.02% 1.21%
Payout ratio 2.81 0.05 0.00

Size

Metric IBM WIT Information Technology Services median
Market cap 214.41b 16.42b 1.36b

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