International Business Machines Corporation (IBM) vs SAP SE (SAP)
SAP leads on 9 of 17 compared metrics, though IBM is the cheaper stock.
A side-by-side comparison of International Business Machines Corporation and SAP SE across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of July 16, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
IBM
International Business Machines Corporation
$219.05TechnologyDelayed quote: Jul 16, 2026, 4:00 PM EDT
SAP
SAP SE
$161.64TechnologyDelayed quote: Jul 16, 2026, 4:01 PM EDT
Total return — IBM vs SAP
growth of $100 · dividends reinvested · last 30yIBM +1918.1%SAP +1908.5%IBM compounded faster
IBM SAP
IBM vs SAP: by the numbers
- •IBM is the larger company ($205.88B vs $188.35B market cap).
- •IBM trades at the lower earnings multiple (18.67 vs 20.92 P/E).
- •SAP converts more revenue to profit (19.58% vs 15.61% net margin).
- •SAP grew revenue faster over the past five years (6.51% vs 4.12% CAGR).
- •IBM pays the higher dividend yield (3.19% vs 1.89%).
Which is better, IBM or SAP?
Metric tally: IBM 8 · SAP 9It depends on what you're optimizing for:
ValueIBM(lower P/E)
GrowthSAP(faster 5Y revenue CAGR)
IncomeIBM(higher dividend yield)
QualitySAP(higher ROIC)
Metrics side by side
Valuation
| Metric | IBM | SAP |
|---|---|---|
| P/E ratio | 18.67● | 20.92 |
| Forward P/E | 17.10● | 21.34 |
| P/S ratio | 2.92● | 4.17 |
| P/B ratio | 6.10 | 3.51● |
| PEG ratio | 0.35 | 0.27● |
| EV / EBITDA | 15.87 | 12.91● |
| FCF yield | 6.51%● | 5.17% |
Profitability
| Metric | IBM | SAP |
|---|---|---|
| Gross margin | 58.97% | 72.79%● |
| Operating margin | 16.36% | 26.87%● |
| Net margin | 15.61% | 19.58%● |
| ROE | 32.61%● | 16.51% |
| ROIC | 8.57% | 12.45%● |
Dividends
| Metric | IBM | SAP |
|---|---|---|
| Dividend yield | 3.19%● | 1.89% |
| Payout ratio | 59.24% | 41.45% |
Growth (annualized)
| Metric | IBM | SAP |
|---|---|---|
| Revenue CAGR (5Y) | 4.12% | 6.51%● |
| EPS CAGR (5Y) | 12.59%● | 5.95% |
| FCF CAGR (5Y) | -3.35% | 3.62%● |
| Total return CAGR (5Y) | 14.83%● | 3.06% |
Frequently asked
- Which is better, IBM or SAP?
- It depends on your goal. value: IBM (lower P/E); growth: SAP (faster 5Y revenue CAGR); income: IBM (higher dividend yield); quality: SAP (higher ROIC). Across all compared metrics, SAP leads 9 to 8.
- Is IBM or SAP cheaper?
- On trailing earnings, IBM is cheaper: IBM trades at a 18.67 P/E and SAP at 20.92.
- Which has grown faster, IBM or SAP?
- Over the past five years, SAP grew revenue faster — IBM at a 4.12% CAGR versus SAP at 6.51%.
- Does IBM or SAP pay a bigger dividend?
- IBM yields 3.19% and SAP yields 1.89% based on trailing dividends and the latest price.
- Is IBM or SAP more profitable?
- SAP runs the higher net margin — IBM at 15.61% versus SAP at 19.58%.
- Which has been the better investment, IBM or SAP?
- Over the past 10-year, SAP delivered the higher annualized total return — IBM at 8.04% versus SAP at 8.85%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
International Business Machines P/E ratioSAP SE P/E ratioInternational Business Machines dividend yieldSAP SE dividend yieldInternational Business Machines ROESAP SE ROEInternational Business Machines operating marginSAP SE operating marginInternational Business Machines revenue growthSAP SE revenue growthInternational Business Machines free cash flowSAP SE free cash flow
International Business Machines & SAP SE 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 16, 2026.