Arm Holdings plc American Depositary Shares (ARM) vs International Business Machines Corporation (IBM)
A side-by-side comparison of Arm Holdings plc American Depositary Shares and International Business Machines Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of July 30, 2026. Differences are shown without an overall score or investment verdict.
ARM
Arm Holdings plc American Depositary Shares
$258.25TechnologyDelayed quote: Jul 30, 2026, 9:30 AM EDT
IBM
International Business Machines Corporation
$222.15TechnologyDelayed quote: Jul 30, 2026, 9:30 AM EDT
Total return — ARM vs IBM
growth of $100 · dividends reinvested · last 3yARM +270.2%IBM +67.0%ARM compounded faster
ARM IBM
ARM vs IBM: by the numbers
- •ARM is the larger company ($274.78B vs $209.30B market cap).
- •IBM trades at the lower trailing earnings multiple (20.04 vs 267.73 P/E), one valuation lens rather than an overall verdict.
- •ARM converts more revenue to profit (18.37% vs 15.52% net margin).
- •ARM grew revenue faster over the past five years (19.41% vs 1.13% CAGR).
- •IBM pays a dividend (2.97% yield), while ARM has no payments in the available dividend history.
Metrics side by side
Valuation
| Metric | ARM | IBM |
|---|---|---|
| P/E ratio | 267.73 | 20.04 |
| Forward P/E | 128.30 | 18.36 |
| P/S ratio | 48.82 | 3.12 |
| P/B ratio | 28.99 | 6.26 |
| PEG ratio | 13.35 | 0.35 |
| EV / EBITDA | 206.86 | 16.91 |
| FCF yield | 0.40% | 6.76% |
Profitability
| Metric | ARM | IBM |
|---|---|---|
| Gross margin | 94.63% | 58.43% |
| Operating margin | 18.31% | 17.86% |
| Net margin | 18.37% | 15.52% |
| ROE | 10.91% | 31.13% |
| ROIC | 7.29% | 10.37% |
Dividends
| Metric | ARM | IBM |
|---|---|---|
| Dividend yield | N/A | 2.97% |
| Payout ratio | N/A | 59.24% |
Growth (annualized)
| Metric | ARM | IBM |
|---|---|---|
| Revenue CAGR (5Y) | 19.41% | 1.13% |
| EPS CAGR (5Y) | 17.47% | 12.59% |
| FCF CAGR (5Y) | -1.73% | -5.01% |
| Total return CAGR (5Y) | N/A | 15.24% |
Frequently asked
- Which has the lower trailing P/E, ARM or IBM?
- IBM has the lower trailing P/E: ARM trades at 267.73 and IBM at 20.04. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, ARM or IBM?
- Over the past five years, ARM grew revenue faster — ARM at a 19.41% CAGR versus IBM at 1.13%.
- Does ARM or IBM pay a bigger dividend?
- IBM pays a dividend (2.97% yield), while ARM has no payments in the available dividend history.
- Is ARM or IBM more profitable?
- ARM runs the higher net margin — ARM at 18.37% versus IBM at 15.52%.
Go deeper
Dig into the metrics
Arm Holdings plc American Depositary Shares P/E ratioInternational Business Machines P/E ratioArm Holdings plc American Depositary Shares dividend yieldInternational Business Machines dividend yieldArm Holdings plc American Depositary Shares ROEInternational Business Machines ROEArm Holdings plc American Depositary Shares operating marginInternational Business Machines operating marginArm Holdings plc American Depositary Shares revenue growthInternational Business Machines revenue growthArm Holdings plc American Depositary Shares free cash flowInternational Business Machines free cash flow
Arm Holdings plc American Depositary Shares & 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 July 30, 2026.