Applied Materials, Inc. (AMAT) vs International Business Machines Corporation (IBM)
IBM leads on 9 of 17 compared metrics.
A side-by-side comparison of Applied Materials, Inc. and International Business Machines Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 14, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
AMAT
Applied Materials, Inc.
$567.25Technology
IBM
International Business Machines Corporation
$272.24Technology
Total return — AMAT vs IBM
growth of $100 · last 30yAMAT +13153.5%IBM +1021.7%AMAT compounded faster
Log scale — wide-divergence pair
AMAT IBM
AMAT vs IBM: by the numbers
- •AMAT is the larger company ($450.37B vs $255.87B market cap).
- •IBM trades at the lower earnings multiple (24.07 vs 53.31 P/E).
- •AMAT converts more revenue to profit (29.31% vs 15.61% net margin).
- •AMAT grew revenue faster over the past five years (9.33% vs -0.09% CAGR).
- •IBM pays the higher dividend yield (2.47% vs 0.34%).
Which is better, AMAT or IBM?
Metric tally: AMAT 8 · IBM 9It depends on what you're optimizing for:
ValueIBM(lower P/E)
GrowthAMAT(faster 5Y revenue CAGR)
IncomeIBM(higher dividend yield)
QualityAMAT(higher ROIC)
Valuation
| Metric | AMAT | IBM |
|---|---|---|
| P/E ratio | 53.31 | 24.07● |
| Forward P/E | 46.38 | 20.33● |
| P/S ratio | 15.62 | 3.76● |
| P/B ratio | 18.96 | 7.86● |
| PEG ratio | 76.90 | 0.35● |
| EV / EBITDA | 41.89 | 19.49● |
| FCF yield | 1.32% | 5.05%● |
Profitability
| Metric | AMAT | IBM |
|---|---|---|
| Gross margin | 48.96% | 58.97%● |
| Operating margin | 29.51%● | 16.36% |
| Net margin | 29.31%● | 15.61% |
| ROE | 35.58%● | 32.61% |
| ROIC | 21.96%● | 8.57% |
Dividends
| Metric | AMAT | IBM |
|---|---|---|
| Dividend yield | 0.34% | 2.47%● |
| Payout ratio | 21.93% | 59.24% |
Growth (annualized)
| Metric | AMAT | IBM |
|---|---|---|
| Revenue CAGR (5Y) | 9.33%● | -0.09% |
| EPS CAGR (5Y) | 17.13%● | 12.59% |
| FCF CAGR (5Y) | 9.02%● | -3.35% |
| Total return CAGR (5Y) | 34.01%● | 18.04% |
Frequently asked
- Which is better, AMAT or IBM?
- It depends on your goal. value: IBM (lower P/E); growth: AMAT (faster 5Y revenue CAGR); income: IBM (higher dividend yield); quality: AMAT (higher ROIC). Across all compared metrics, IBM leads 9 to 8.
- Is AMAT or IBM cheaper?
- On trailing earnings, IBM is cheaper: AMAT trades at a 53.31 P/E and IBM at 24.07.
- Which has grown faster, AMAT or IBM?
- Over the past five years, AMAT grew revenue faster — AMAT at a 9.33% CAGR versus IBM at -0.09%.
- Does AMAT or IBM pay a bigger dividend?
- AMAT yields 0.34% and IBM yields 2.47% based on trailing dividends and the latest price.
- Is AMAT or IBM more profitable?
- AMAT runs the higher net margin — AMAT at 29.31% versus IBM at 15.61%.
- Which has been the better investment, AMAT or IBM?
- Over the past 10-year, AMAT delivered the higher annualized total return — AMAT at 38.64% versus IBM at 11.01%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Applied Materials P/E ratioInternational Business Machines P/E ratioApplied Materials dividend yieldInternational Business Machines dividend yieldApplied Materials ROEInternational Business Machines ROEApplied Materials operating marginInternational Business Machines operating marginApplied Materials revenue growthInternational Business Machines revenue growthApplied Materials free cash flowInternational Business Machines free cash flow
Applied Materials & International Business Machines appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified June 14, 2026.