International Business Machines Corporation (IBM) vs Palo Alto Networks, Inc. (PANW)
IBM leads on 10 of 16 compared metrics.
A side-by-side comparison of International Business Machines Corporation and Palo Alto Networks, Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 15, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
IBM
International Business Machines Corporation
$272.24Technology
PANW
Palo Alto Networks, Inc.
$279.62Technology
Total return — IBM vs PANW
growth of $100 · last 14yIBM +48.0%PANW +3059.5%PANW compounded faster
Log scale — wide-divergence pair
IBM PANW
IBM vs PANW: by the numbers
- •IBM is the larger company ($255.87B vs $190.56B market cap).
- •IBM trades at the lower earnings multiple (24.07 vs 243.15 P/E).
- •IBM converts more revenue to profit (15.61% vs 7.95% net margin).
- •PANW grew revenue faster over the past five years (21.62% vs -0.09% CAGR).
- •IBM pays a dividend (2.47% yield) while PANW does not currently pay one.
Which is better, IBM or PANW?
Metric tally: IBM 10 · PANW 6It depends on what you're optimizing for:
ValueIBM(lower P/E)
GrowthPANW(faster 5Y revenue CAGR)
QualityIBM(higher ROIC)
Metrics side by side
Valuation
| Metric | IBM | PANW |
|---|---|---|
| P/E ratio | 24.07● | 243.15 |
| Forward P/E | 20.33● | 68.62 |
| P/S ratio | 3.76● | 19.61 |
| P/B ratio | 7.86 | 7.52● |
| PEG ratio | 0.35● | 3.50 |
| EV / EBITDA | 19.49● | 117.46 |
| FCF yield | 5.05%● | 2.06% |
Profitability
| Metric | IBM | PANW |
|---|---|---|
| Gross margin | 58.97% | 71.94%● |
| Operating margin | 16.36%● | 9.65% |
| Net margin | 15.61%● | 7.95% |
| ROE | 32.61%● | 3.05% |
| ROIC | 8.57%● | 5.67% |
Dividends
| Metric | IBM | PANW |
|---|---|---|
| Dividend yield | 2.47% | — |
| Payout ratio | 59.24% | — |
Growth (annualized)
| Metric | IBM | PANW |
|---|---|---|
| Revenue CAGR (5Y) | -0.09% | 21.62%● |
| EPS CAGR (5Y) | 12.59% | 69.46%● |
| FCF CAGR (5Y) | -3.35% | 25.30%● |
| Total return CAGR (5Y) | 18.04% | 35.59%● |
Frequently asked
- Which is better, IBM or PANW?
- It depends on your goal. value: IBM (lower P/E); growth: PANW (faster 5Y revenue CAGR); quality: IBM (higher ROIC). Across all compared metrics, IBM leads 10 to 6.
- Is IBM or PANW cheaper?
- On trailing earnings, IBM is cheaper: IBM trades at a 24.07 P/E and PANW at 243.15.
- Which has grown faster, IBM or PANW?
- Over the past five years, PANW grew revenue faster — IBM at a -0.09% CAGR versus PANW at 21.62%.
- Does IBM or PANW pay a bigger dividend?
- IBM pays a dividend (2.47% yield) while PANW does not currently pay one.
- Is IBM or PANW more profitable?
- IBM runs the higher net margin — IBM at 15.61% versus PANW at 7.95%.
- Which has been the better investment, IBM or PANW?
- Over the past 10-year, PANW delivered the higher annualized total return — IBM at 11.01% versus PANW at 29.01%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
International Business Machines P/E ratioPalo Alto Networks P/E ratioInternational Business Machines dividend yieldPalo Alto Networks dividend yieldInternational Business Machines ROEPalo Alto Networks ROEInternational Business Machines operating marginPalo Alto Networks operating marginInternational Business Machines revenue growthPalo Alto Networks revenue growthInternational Business Machines free cash flowPalo Alto Networks free cash flow
International Business Machines & Palo Alto Networks 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 15, 2026.