International Business Machines Corporation (IBM) vs Shopify Inc. (SHOP)
A side-by-side comparison of International Business Machines Corporation and Shopify Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of August 14, 2026. Differences are shown without an overall score or investment verdict.
IBM
International Business Machines Corporation
$234.32TechnologyDelayed quote: Aug 14, 2026, 4:00 PM EDT
SHOP
Shopify Inc.
$154.32TechnologyDelayed quote: Aug 14, 2026, 4:00 PM EDT
Total return — IBM vs SHOP
growth of $100 · dividends reinvested · last 10yIBM +132.4% (+8.8%/yr)SHOP +3956.6% (+44.8%/yr)SHOP compounded faster over this window
Log scale — wide-divergence pair
IBM SHOP
IBM vs SHOP: by the numbers
- •IBM is the larger company ($220.76B vs $200.25B market cap).
- •IBM trades at the lower trailing earnings multiple (20.99 vs 106.40 P/E), one valuation lens rather than an overall verdict.
- •IBM converts more revenue to profit (15.52% vs 14.53% net margin).
- •SHOP grew revenue faster over the past five years (28.06% vs 1.13% CAGR).
- •IBM pays a dividend (2.84% yield), while SHOP has no payments in the available dividend history.
Metrics side by side
Valuation
| Metric | IBM | SHOP |
|---|---|---|
| P/E ratio | 20.99 | 106.40 |
| Forward P/E | 19.25 | 84.64 |
| P/S ratio | 3.27 | 15.51 |
| P/B ratio | 6.56 | 16.22 |
| EV / EBITDA | 16.19 | 109.07 |
| FCF yield | 6.46% | 1.14% |
Profitability
| Metric | IBM | SHOP |
|---|---|---|
| Gross margin | 58.43% | 47.77% |
| Operating margin | 17.86% | 13.90% |
| Net margin | 15.52% | 14.53% |
| ROE | 31.13% | 15.20% |
| ROIC | 10.37% | 8.67% |
Dividends
| Metric | IBM | SHOP |
|---|---|---|
| Dividend yield | 2.84% | N/A |
| Payout ratio | 59.33% | N/A |
Growth (annualized)
| Metric | IBM | SHOP |
|---|---|---|
| Revenue CAGR (5Y) | 1.13% | 28.06% |
| EPS CAGR (5Y) | 12.59% | 28.61% |
| FCF CAGR (5Y) | -5.01% | 35.93% |
| Total return CAGR (5Y) | 16.00% | 1.14% |
Frequently asked
- Which has the lower trailing P/E, IBM or SHOP?
- IBM has the lower trailing P/E: IBM trades at 20.99 and SHOP at 106.40. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, IBM or SHOP?
- Over the past five years, SHOP grew revenue faster — IBM at a 1.13% CAGR versus SHOP at 28.06%.
- Does IBM or SHOP pay a bigger dividend?
- IBM pays a dividend (2.84% yield), while SHOP has no payments in the available dividend history.
- Is IBM or SHOP more profitable?
- IBM runs the higher net margin — IBM at 15.52% versus SHOP at 14.53%.
- How have IBM and SHOP total returns compared?
- Over the past 10 years, IBM delivered 8.81% and SHOP delivered 44.70% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
International Business Machines P/E ratioShopify P/E ratioInternational Business Machines dividend yieldInternational Business Machines ROEShopify ROEInternational Business Machines operating marginShopify operating marginInternational Business Machines revenue growthShopify revenue growthInternational Business Machines free cash flowShopify free cash flow
International Business Machines & Shopify 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 August 14, 2026.