MSFT vs IBM Comparison: AI Score, Valuation, Performance and Upside
Compare Microsoft and IBM by Azure vs hybrid cloud revenue, AI consulting growth, enterprise software renewal, dividend yield, and analyst upside.
Use this Microsoft vs IBM comparison to evaluate the key differences across valuation, growth, profitability, and risk before making an investment decision.
MSFT holds the edge across 4 of 5 key metrics in this comparison. MSFT has delivered stronger 1-year price return (-22.75% vs -27.02%), though IBM has the better forward P/E setup (16.25x vs 20.32x for MSFT). MSFT leads on both revenue growth (18.30%) and operating margin (46.33%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for MSFT (+41.74%) than for IBM (+28.72%).
| Metric | MSFT | IBM |
|---|---|---|
| AI score | 58.5 | 40.7 |
| AI rank | #224 | #1091 |
| Latest close | $390.34 | $205.77 |
| 1M return | +6.26% | -18.42% |
| 6M return | -12.11% | -30.84% |
| 1Y return | -22.75% | -27.02% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | MSFT | IBM |
|---|---|---|
| 1Y ago | $7.72K (-22.8%) started 2025-07-23 | $7.3K (-27.0%) started 2025-07-23 |
| 5Y ago | $14.44K (+44.4%) started 2021-07-26 | $21.53K (+115.3%) started 2021-07-26 |
| 10Y ago | $87.21K (+772.1%) started 2016-07-25 | $31.64K (+216.4%) started 2016-07-25 |
Hypothetical — past performance does not guarantee future results.
| Metric | MSFT | IBM |
|---|---|---|
| Market cap | $2.93T | $199.89B |
| Trailing P/E | 23.47 | 18.84 |
| Forward P/E | 20.32 | 16.25 |
| Price/Sales | 11.87 | 3.98 |
| EV/Revenue | 9.34 | 3.74 |
| Analyst target | $558.21 | $273.75 |
| Target upside | +41.74% | +28.72% |
| Metric | MSFT | IBM |
|---|---|---|
| Revenue growth | 18.30% | 9.50% |
| Earnings growth | 23.40% | 14.20% |
| EPS growth | +23.40% | +14.20% |
| FCF margin | +11.63% | +19.03% |
| Operating margin | 46.33% | 13.81% |
| Profit margin | 39.34% | 15.61% |
| ROIC proxy | 34.01% | 35.77% |
| Return on equity | 34.01% | 35.77% |
| Dividend yield | 0.92% | 3.18% |
| Beta | 1.13 | 0.68 |
| Debt/equity | 30.27 | 211.17 |
| Current ratio | 1.28 | 0.80 |
| Quick ratio | 1.14 | 0.64 |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | MSFT | IBM |
|---|---|---|---|
| 1Y | Growth | -22.84% | -27.03% |
| CAGR | -22.89% | -27.09% | |
| Sharpe ratio | -0.97 | -0.49 | |
| Max drawdown | 34.91% | 37.50% | |
| Max daily drop | 9.99% | 25.21% | |
| Max wkly drop | 14.43% | 30.08% | |
| 5Y | Growth | +39.60% | +78.76% |
| CAGR | +6.91% | +12.34% | |
| Sharpe ratio | 0.22 | 0.39 | |
| Max drawdown | 37.15% | 37.50% | |
| Max daily drop | 9.99% | 25.21% | |
| Max wkly drop | 14.43% | 30.08% | |
| 10Y | Growth | +672.08% | +95.96% |
| CAGR | +22.69% | +6.96% | |
| Sharpe ratio | 0.73 | 0.22 | |
| Max drawdown | 37.15% | 40.59% | |
| Max daily drop | 14.74% | 25.21% | |
| Max wkly drop | 16.36% | 30.08% |
| Category | MSFT | IBM |
|---|---|---|
| Company | MSFT | IBM |
| Sector | Technology | Technology |
| Industry | Software - Infrastructure | Information Technology Services |
| Core business | N/A | N/A |
| Investor focus | N/A | N/A |
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