Arm Holdings plc American Depositary Shares (ARM) vs International Business Machines Corporation (IBM)
IBM leads on 9 of 15 compared metrics.
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 June 14, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
ARM
Arm Holdings plc American Depositary Shares
$380.81Technology
IBM
International Business Machines Corporation
$272.24Technology
Total return — ARM vs IBM
growth of $100 · last 3yARM +526.8%IBM +86.5%ARM compounded faster
ARM IBM
ARM vs IBM: by the numbers
- •ARM is the larger company ($405.18B vs $255.87B market cap).
- •IBM trades at the lower earnings multiple (24.07 vs 453.35 P/E).
- •ARM converts more revenue to profit (18.37% vs 15.61% net margin).
- •ARM grew revenue faster over the past five years (19.41% vs -0.09% CAGR).
- •IBM pays a dividend (2.47% yield) while ARM does not currently pay one.
Which is better, ARM or IBM?
Metric tally: ARM 6 · IBM 9It depends on what you're optimizing for:
ValueIBM(lower P/E)
GrowthARM(faster 5Y revenue CAGR)
QualityIBM(higher ROIC)
Metrics side by side
Valuation
| Metric | ARM | IBM |
|---|---|---|
| P/E ratio | 453.35 | 24.07● |
| Forward P/E | 126.31 | 20.33● |
| P/S ratio | 82.66 | 3.76● |
| P/B ratio | 49.08 | 7.86● |
| PEG ratio | 13.32 | 0.35● |
| EV / EBITDA | 287.63 | 19.49● |
| FCF yield | 0.23% | 5.05%● |
Profitability
| Metric | ARM | IBM |
|---|---|---|
| Gross margin | 94.63%● | 58.97% |
| Operating margin | 18.31%● | 16.36% |
| Net margin | 18.37%● | 15.61% |
| ROE | 10.91% | 32.61%● |
| ROIC | 7.31% | 8.57%● |
Dividends
| Metric | ARM | IBM |
|---|---|---|
| Dividend yield | — | 2.47% |
| Payout ratio | — | 59.24% |
Growth (annualized)
| Metric | ARM | IBM |
|---|---|---|
| Revenue CAGR (5Y) | 19.41%● | -0.09% |
| EPS CAGR (5Y) | 17.47%● | 12.59% |
| FCF CAGR (5Y) | -1.73%● | -3.35% |
| Total return CAGR (5Y) | — | 18.04% |
Frequently asked
- Which is better, ARM or IBM?
- It depends on your goal. value: IBM (lower P/E); growth: ARM (faster 5Y revenue CAGR); quality: IBM (higher ROIC). Across all compared metrics, IBM leads 9 to 6.
- Is ARM or IBM cheaper?
- On trailing earnings, IBM is cheaper: ARM trades at a 453.35 P/E and IBM at 24.07.
- 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 -0.09%.
- Does ARM or IBM pay a bigger dividend?
- IBM pays a dividend (2.47% yield) while ARM does not currently pay one.
- Is ARM or IBM more profitable?
- ARM runs the higher net margin — ARM at 18.37% versus IBM at 15.61%.
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 June 14, 2026.