WallStSmart

Applied Digital Corporation (APLD)vsInternational Business Machines (IBM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

International Business Machines generates 21484% more annual revenue ($68.91B vs $319.26M). IBM leads profitability with a 15.6% profit margin vs -59.5%. APLD appears more attractively valued with a PEG of 1.83. IBM earns a higher WallStSmart Score of 57/100 (C).

APLD

Hold

37

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 4.7Quality: 4.5
Piotroski: 3/9Altman Z: -0.33

IBM

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 4.3Quality: 4.0
Piotroski: 3/9Altman Z: 2.29

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

APLD1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
139.3%10/10

Revenue surging 139.3% year-over-year

IBM3 strengths · Avg: 9.3/10
Market CapQuality
$309.44B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
32.6%10/10

Every $100 of equity generates 33 in profit

Free Cash FlowQuality
$4.78B8/10

Generating 4.8B in free cash flow

Areas to Watch

APLD4 concerns · Avg: 3.5/10
PEG RatioValuation
1.834/10

Expensive relative to growth rate

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Debt/EquityHealth
1.793/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

IBM4 concerns · Avg: 3.3/10
P/E RatioValuation
29.2x4/10

Moderate valuation

Price/BookValuation
8.1x4/10

Trading at 8.1x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.992/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : APLD

The strongest argument for APLD centers on Revenue Growth. Revenue growth of 139.3% demonstrates continued momentum.

Bull Case : IBM

The strongest argument for IBM centers on Market Cap, Return on Equity, Free Cash Flow. Profitability is solid with margins at 15.6% and operating margin at 13.8%.

Bear Case : APLD

The primary concerns for APLD are PEG Ratio, EPS Growth, Debt/Equity. Debt-to-equity of 1.79 is elevated, increasing financial risk.

Bear Case : IBM

The primary concerns for IBM are P/E Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 2.14 is elevated, increasing financial risk.

Key Dynamics to Monitor

APLD profiles as a hypergrowth stock while IBM is a mature play — different risk/reward profiles.

APLD carries more volatility with a beta of 5.64 — expect wider price swings.

APLD is growing revenue faster at 139.3% — sustainability is the question.

IBM generates stronger free cash flow (4.8B), providing more financial flexibility.

Bottom Line

IBM scores higher overall (57/100 vs 37/100), backed by strong 15.6% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Applied Digital Corporation

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Applied Blockchain, Inc. is engaged in crypto mining and co-hosting operations. The company is headquartered in Dallas, Texas.

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International Business Machines

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

International Business Machines Corporation (IBM) is an American multinational technology company headquartered in Armonk, New York, with operations in over 170 countries. The company began in 1911, founded in Endicott, New York, as the Computing-Tabulating-Recording Company (CTR) and was renamed International Business Machines in 1924. IBM is incorporated in New York. IBM produces and sells computer hardware, middleware and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. IBM is also a major research organization, holding the record for most annual U.S. patents generated by a business (as of 2020) for 28 consecutive years. Inventions by IBM include the automated teller machine (ATM), the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the SQL programming language, the UPC barcode, and dynamic random-access memory (DRAM). The IBM mainframe, exemplified by the System/360, was the dominant computing platform during the 1960s and 1970s.

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