IBM vs ACN Stock Comparison: AI Score, Valuation, Performance and Upside
IBM and Accenture both help large enterprises adopt AI and modernize technology infrastructure, but IBM combines proprietary hybrid cloud and AI software with hardware and consulting, while Accenture is a pure-play global consulting and technology services firm without its own infrastructure or software platforms.
IBM offers exposure to proprietary hybrid cloud and AI software alongside consulting and legacy hardware, while ACN offers exposure to a pure-play, globally scaled consulting business capturing enterprise AI transformation spending. The decision depends on whether you prefer a platform-and-services hybrid or a services-only model.
ACN holds the edge across 4 of 5 key metrics in this comparison. ACN leads on both 1-year return (+0.09%) and forward P/E quality (12.53x vs 17.90x for IBM), a relatively favorable combination of momentum and valuation. ACN leads on both revenue growth (5.60%) and operating margin (16.96%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for IBM (+3.96%) than for ACN (-0.17%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want exposure to proprietary hybrid cloud and AI software alongside consulting services
- Value a long-established dividend track record supported by consistent free cash flow
- Believe the company's ongoing transformation toward higher-growth segments will continue to progress
- Prefer a diversified technology company over a pure-play consulting firm
- Want exposure to a pure-play, globally scaled consulting and technology services business
- Value broad diversification across industries and geographies
- Believe enterprise AI transformation spending will continue driving consulting bookings
- Prefer a services-focused business model over one combining hardware, software, and services
| Metric | IBM | ACN |
|---|---|---|
| AI scorei | 39.4 | 40.2 |
| AI ranki | #1035 | #1392 |
| Latest closei | $253.56 | $249.37 |
| 1M returni | +8.94% | +35.88% |
| 3M returni | +18.38% | +69.65% |
| 6M returni | +9.30% | +39.81% |
| 1Y returni | -11.81% | +0.09% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | IBM | ACN |
|---|---|---|
| 1Y ago | $8.9K (-11.0%) started 2025-10-23 | $9.98K (-0.2%) started 2025-10-23 |
| 5Y ago | $28.94K (+189.4%) started 2021-10-25 | $7.81K (-21.9%) started 2021-10-25 |
| 10Y ago | $41.23K (+312.3%) started 2016-10-24 | $28.36K (+183.6%) started 2016-10-24 |
Hypothetical — past performance does not guarantee future results.
| Metric | IBM | ACN |
|---|---|---|
| Market capi | $221.96B | $112.54B |
| Trailing P/Ei | 20.92 | 14.69 |
| Forward P/Ei | 17.90 | 12.53 |
| Price/Salesi | 3.98 | 2.96 |
| EV/Revenuei | 4.04 | 1.54 |
| Analyst targeti | $244.91 | $183.59 |
| Target upsidei | +3.96% | -0.17% |
| Metric | IBM | ACN |
|---|---|---|
| Revenue growthi | 1.10% | 5.60% |
| Earnings growthi | -1.80% | 9.00% |
| EPS growthi | -1.80% | +9.00% |
| FCF margini | +17.44% | +16.54% |
| Operating margini | 16.55% | 16.96% |
| Profit margini | 15.52% | 10.66% |
| ROIC proxyi | 34.46% | 24.41% |
| Return on equityi | 34.46% | 24.41% |
| Dividend yieldi | 2.87% | 3.66% |
| Payout ratioi | 57.51% | 48.08% |
| Dividend growth streaki | No increase yet | No increase yet |
| Betai | 0.70 | 1.09 |
| Debt/equityi | 188.97 | 25.04 |
| Current ratioi | 0.79 | 1.34 |
| Quick ratioi | 0.61 | 1.21 |
Over the past year, IBM and ACN have moved moderately in the same direction (correlation of 0.47), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | IBM | ACN |
|---|---|---|---|
| 1Y | Growthi | -11.03% | -0.18% |
| CAGRi | -11.05% | -0.18% | |
| Volatilityi | 48.90% | 49.28% | |
| Sharpe ratioi | -0.07 | 0.15 | |
| Sortino ratioi | -0.10 | 0.22 | |
| Max drawdowni | 37.50% | 56.87% | |
| Current drawdowni | 22.98% | 13.58% | |
| Avg drawdowni | 18.26% | 26.84% | |
| Ulcer Indexi | 21.45% | 31.86% | |
| Max daily dropi | 25.21% | 17.97% | |
| Max wkly dropi | 30.08% | 26.69% | |
| 5Y | Growthi | +143.58% | -26.12% |
| CAGRi | +19.51% | -5.88% | |
| Volatilityi | 30.23% | 32.96% | |
| Sharpe ratioi | 0.60 | -0.16 | |
| Sortino ratioi | 0.83 | -0.22 | |
| Max drawdowni | 37.50% | 68.60% | |
| Current drawdowni | 22.98% | 37.07% | |
| Avg drawdowni | 8.38% | 27.21% | |
| Ulcer Indexi | 11.87% | 30.92% | |
| Max daily dropi | 25.21% | 17.97% | |
| Max wkly dropi | 30.08% | 26.69% | |
| 10Y | Growthi | +158.62% | +145.99% |
| CAGRi | +9.97% | +9.42% | |
| Volatilityi | 28.34% | 29.17% | |
| Sharpe ratioi | 0.32 | 0.30 | |
| Sortino ratioi | 0.44 | 0.43 | |
| Max drawdowni | 40.59% | 68.60% | |
| Current drawdowni | 22.98% | 37.07% | |
| Avg drawdowni | 11.89% | 15.57% | |
| Ulcer Indexi | 14.64% | 22.32% | |
| Max daily dropi | 25.21% | 17.97% | |
| Max wkly dropi | 30.08% | 26.69% |
| Category | IBM | ACN |
|---|---|---|
| Company | International Business Machines Corporation | Accenture plc |
| Sector | Technology | Technology |
| Industry | Information Technology Services | Information Technology Services |
| Core business | A global technology company providing hybrid cloud infrastructure, enterprise software, artificial intelligence platforms, and consulting services, alongside a legacy mainframe and systems hardware business. | A global professional services company providing strategy, consulting, technology, and operations services, helping enterprises across industries plan and execute large-scale digital and AI transformation initiatives. |
| Investor focus | Growth in hybrid cloud and AI software revenue, consulting bookings tied to enterprise AI adoption, and free cash flow supporting its dividend commitment. | Bookings growth tied to generative AI-related consulting demand, revenue growth by industry and geography, and operating margin trends amid a competitive talent market. |
- Long-standing enterprise relationships and deep presence in regulated industries support durable, high-value technology relationships
- Hybrid cloud and AI platform strategy, anchored by its Red Hat and watsonx investments, targets enterprises seeking flexible infrastructure
- Consistent free cash flow generation has historically supported a well-established dividend track record
- Broad, diversified service offering spans strategy, technology implementation, and managed operations across virtually every major industry
- Scale and global delivery capabilities position the company to capture large-scale enterprise AI transformation engagements
- Diversified revenue base across geographies and industries reduces reliance on any single client vertical or region
- Legacy hardware and infrastructure segments face secular growth challenges even as newer software and consulting segments expand
- Competes against both large cloud hyperscalers and pure-play consulting firms across different parts of its business
- Successful execution of its ongoing transformation toward higher-growth hybrid cloud and AI segments remains an ongoing multi-year effort
- Consulting-led revenue model can be sensitive to enterprise discretionary spending cycles during economic uncertainty
- Talent-intensive business model requires ongoing investment in hiring, training, and retention amid competitive labor markets
- Competes against a wide range of global and boutique consulting and systems integration firms for large transformation engagements
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