International Business Machines Corporation (IBM) vs KLA Corporation (KLAC)
KLAC leads on 11 of 16 compared metrics, though IBM is the cheaper stock.
A side-by-side comparison of International Business Machines Corporation and KLA Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 13, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
IBM
International Business Machines Corporation
$272.24Technology
KLAC
KLA Corporation
$254.54Technology
Total return — IBM vs KLAC
growth of $100 · last 30yIBM +1004.0%KLAC +19330.5%KLAC compounded faster
Log scale — wide-divergence pair
IBM KLAC
IBM vs KLAC: by the numbers
- •KLAC is the larger company ($332.50B vs $255.87B market cap).
- •IBM trades at the lower earnings multiple (24.07 vs 72.05 P/E).
- •KLAC converts more revenue to profit (35.66% vs 15.61% net margin).
- •KLAC grew revenue faster over the past five years (15.21% vs -0.09% CAGR).
- •KLAC pays the higher dividend yield (3.14% vs 2.47%).
Which is better, IBM or KLAC?
Metric tally: IBM 5 · KLAC 11It depends on what you're optimizing for:
ValueIBM(lower P/E)
GrowthKLAC(faster 5Y revenue CAGR)
IncomeKLAC(higher dividend yield)
QualityKLAC(higher ROIC)
Valuation
| Metric | IBM | KLAC |
|---|---|---|
| P/E ratio | 24.07● | 72.05 |
| Forward P/E | 20.33 | — |
| P/S ratio | 3.76● | 25.61 |
| P/B ratio | 7.86● | 57.52 |
| PEG ratio | 0.35 | 0.06● |
| EV / EBITDA | 19.54● | 57.56 |
| FCF yield | 5.05%● | 1.20% |
Profitability
| Metric | IBM | KLAC |
|---|---|---|
| Gross margin | 58.97% | 61.75%● |
| Operating margin | 16.36% | 42.08%● |
| Net margin | 15.61% | 35.66%● |
| ROE | 32.61% | 80.11%● |
| ROIC | 8.57% | 38.11%● |
Dividends
| Metric | IBM | KLAC |
|---|---|---|
| Dividend yield | 2.47% | 3.14%● |
| Payout ratio | 59.24% | 262.04% |
Growth (annualized)
| Metric | IBM | KLAC |
|---|---|---|
| Revenue CAGR (5Y) | -0.09% | 15.21%● |
| EPS CAGR (5Y) | 12.59% | 31.52%● |
| FCF CAGR (5Y) | -3.35% | 15.49%● |
| Total return CAGR (5Y) | 18.04% | 67.17%● |
Frequently asked
- Which is better, IBM or KLAC?
- It depends on your goal. value: IBM (lower P/E); growth: KLAC (faster 5Y revenue CAGR); income: KLAC (higher dividend yield); quality: KLAC (higher ROIC). Across all compared metrics, KLAC leads 11 to 5.
- Is IBM or KLAC cheaper?
- On trailing earnings, IBM is cheaper: IBM trades at a 24.07 P/E and KLAC at 72.05.
- Which has grown faster, IBM or KLAC?
- Over the past five years, KLAC grew revenue faster — IBM at a -0.09% CAGR versus KLAC at 15.21%.
- Does IBM or KLAC pay a bigger dividend?
- IBM yields 2.47% and KLAC yields 3.14% based on trailing dividends and the latest price.
- Is IBM or KLAC more profitable?
- KLAC runs the higher net margin — IBM at 15.61% versus KLAC at 35.66%.
- Which has been the better investment, IBM or KLAC?
- Over the past 10-year, KLAC delivered the higher annualized total return — IBM at 11.01% versus KLAC at 67.44%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
International Business Machines P/E ratioKLA P/E ratioInternational Business Machines dividend yieldKLA dividend yieldInternational Business Machines ROEKLA ROEInternational Business Machines operating marginKLA operating marginInternational Business Machines revenue growthKLA revenue growthInternational Business Machines free cash flowKLA free cash flow
International Business Machines & KLA 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 13, 2026.