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Sell IBM And Buy This Stock?
Forbesยท 2025-09-26 12:50
Core Viewpoint - Gartner may be a more beneficial investment choice compared to IBM due to stronger revenue growth, enhanced profitability, and a comparatively lower valuation [1]. Revenue Growth - Gartner's revenue growth over the last 12 months was 5.9%, while IBM's was 2.7% [5]. - Over the last three years, Gartner's average revenue growth stood at 8.0%, surpassing IBM's 2.4% [5]. Profitability - Gartner outperforms IBM in profitability, with a last twelve months (LTM) margin of 18.2% and a three-year average margin of 19.0% [5]. Stock Performance - Gartner's stock is down approximately 45% year-to-date, while IBM has gained about 27% over the same period [3]. - IBM's focus on hybrid cloud and AI has been a major catalyst for its stock performance this year [3]. Company Services - IBM provides global integrated solutions and services that include hybrid cloud platforms, open-source software, and both on-premises and cloud server/storage solutions [4]. - Gartner specializes in IT research and advisory, organizing conferences, and offering consulting services such as market research and tailored analysis [4].