WallStSmart

CSP Inc (CSPI)vsInternational Business Machines (IBM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

International Business Machines generates 121309% more annual revenue ($69.09B vs $56.91M). IBM leads profitability with a 15.5% profit margin vs -1.2%. CSPI appears more attractively valued with a PEG of 0.92. IBM earns a higher WallStSmart Score of 54/100 (C-).

CSPI

Hold

35

out of 100

Grade: F

Growth: 2.7Profit: 2.0Value: 6.0Quality: 7.5
Piotroski: 3/9Altman Z: 2.82

IBM

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 8.0Value: 4.0Quality: 4.5
Piotroski: 3/9Altman Z: 2.29
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CSPI.

IBMSignificantly Overvalued (-84.8%)

Margin of Safety

-84.8%

Fair Value

$131.65

Current Price

$243.29

$111.64 premium

UndervaluedFair: $131.65Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CSPI3 strengths · Avg: 8.7/10
Debt/EquityHealth
0.0810/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.928/10

Growing faster than its price suggests

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

IBM3 strengths · Avg: 9.3/10
Market CapQuality
$229.21B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
31.1%10/10

Every $100 of equity generates 31 in profit

Free Cash FlowQuality
$2.37B8/10

Generating 2.4B in free cash flow

Areas to Watch

CSPI4 concerns · Avg: 2.5/10
Market CapQuality
$78.23M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-0.2%2/10

ROE of -0.2% — below average capital efficiency

Revenue GrowthGrowth
-6.8%2/10

Revenue declined 6.8%

IBM4 concerns · Avg: 3.5/10
PEG RatioValuation
2.214/10

Expensive relative to growth rate

Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

Debt/EquityHealth
1.893/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : CSPI

The strongest argument for CSPI centers on Debt/Equity, PEG Ratio, Price/Book. PEG of 0.92 suggests the stock is reasonably priced for its growth.

Bull Case : IBM

The strongest argument for IBM centers on Market Cap, Return on Equity, Free Cash Flow. Profitability is solid with margins at 15.5% and operating margin at 16.6%.

Bear Case : CSPI

The primary concerns for CSPI are Market Cap, Piotroski F-Score, Return on Equity.

Bear Case : IBM

The primary concerns for IBM are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.89 is elevated, increasing financial risk.

Key Dynamics to Monitor

CSPI profiles as a turnaround stock while IBM is a value play — different risk/reward profiles.

CSPI carries more volatility with a beta of 0.86 — expect wider price swings.

IBM is growing revenue faster at 1.1% — sustainability is the question.

IBM generates stronger free cash flow (2.4B), providing more financial flexibility.

Bottom Line

IBM scores higher overall (54/100 vs 35/100), backed by strong 15.5% 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.

CSP Inc

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

CSP Inc. develops and markets IT integration solutions, security products, managed IT services, purpose-built network adapters, and cluster computing systems for defense and commercial customers globally. The company is headquartered in Lowell, Massachusetts.

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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