International Business Machines Corporation (IBM) vs Western Digital Corporation (WDC)
IBM leads on 10 of 17 compared metrics.
A side-by-side comparison of International Business Machines Corporation and Western Digital Corporation 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
WDC
Western Digital Corporation
$562.92Technology
Total return — IBM vs WDC
growth of $100 · last 30yIBM +1012.1%WDC +6311.4%WDC compounded faster
Log scale — wide-divergence pair
IBM WDC
IBM vs WDC: by the numbers
- •IBM is the larger company ($255.87B vs $194.03B market cap).
- •IBM trades at the lower earnings multiple (24.07 vs 32.96 P/E).
- •WDC converts more revenue to profit (55.07% vs 15.61% net margin).
- •IBM grew revenue faster over the past five years (-0.09% vs -6.28% CAGR).
- •IBM pays the higher dividend yield (2.47% vs 0.09%).
Which is better, IBM or WDC?
Metric tally: IBM 10 · WDC 7It depends on what you're optimizing for:
ValueIBM(lower P/E)
GrowthIBM(faster 5Y revenue CAGR)
IncomeIBM(higher dividend yield)
QualityWDC(higher ROIC)
Metrics side by side
Valuation
| Metric | IBM | WDC |
|---|---|---|
| P/E ratio | 24.07● | 32.96 |
| Forward P/E | 20.33● | 31.96 |
| P/S ratio | 3.76● | 17.97 |
| P/B ratio | 7.86● | 21.87 |
| PEG ratio | 0.35● | 2.55 |
| EV / EBITDA | 19.49● | 28.04 |
| FCF yield | 5.05%● | 1.37% |
Profitability
| Metric | IBM | WDC |
|---|---|---|
| Gross margin | 58.97%● | 45.43% |
| Operating margin | 16.36% | 30.78%● |
| Net margin | 15.61% | 55.07%● |
| ROE | 32.61% | 67.00%● |
| ROIC | 8.57% | 21.53%● |
Dividends
| Metric | IBM | WDC |
|---|---|---|
| Dividend yield | 2.47%● | 0.09% |
| Payout ratio | 59.24% | 9.42% |
Growth (annualized)
| Metric | IBM | WDC |
|---|---|---|
| Revenue CAGR (5Y) | -0.09%● | -6.28% |
| EPS CAGR (5Y) | 12.59% | 12.92%● |
| FCF CAGR (5Y) | -3.35% | 78.08%● |
| Total return CAGR (5Y) | 18.04% | 58.48%● |
Frequently asked
- Which is better, IBM or WDC?
- It depends on your goal. value: IBM (lower P/E); growth: IBM (faster 5Y revenue CAGR); income: IBM (higher dividend yield); quality: WDC (higher ROIC). Across all compared metrics, IBM leads 10 to 7.
- Is IBM or WDC cheaper?
- On trailing earnings, IBM is cheaper: IBM trades at a 24.07 P/E and WDC at 32.96.
- Which has grown faster, IBM or WDC?
- Over the past five years, IBM grew revenue faster — IBM at a -0.09% CAGR versus WDC at -6.28%.
- Does IBM or WDC pay a bigger dividend?
- IBM yields 2.47% and WDC yields 0.09% based on trailing dividends and the latest price.
- Is IBM or WDC more profitable?
- WDC runs the higher net margin — IBM at 15.61% versus WDC at 55.07%.
- Which has been the better investment, IBM or WDC?
- Over the past 10-year, WDC delivered the higher annualized total return — IBM at 11.01% versus WDC at 33.71%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
International Business Machines P/E ratioWestern Digital P/E ratioInternational Business Machines dividend yieldWestern Digital dividend yieldInternational Business Machines ROEWestern Digital ROEInternational Business Machines operating marginWestern Digital operating marginInternational Business Machines revenue growthWestern Digital revenue growthInternational Business Machines free cash flowWestern Digital free cash flow
International Business Machines & Western Digital 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.