WallStSmart

Dell Technologies Inc (DELL)vsInternational Business Machines (IBM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dell Technologies Inc generates 68% more annual revenue ($113.54B vs $67.53B). IBM leads profitability with a 15.7% profit margin vs 5.2%. DELL appears more attractively valued with a PEG of 0.65. DELL earns a higher WallStSmart Score of 78/100 (B+).

DELL

Strong Buy

78

out of 100

Grade: B+

Growth: 8.0Profit: 6.5Value: 10.0Quality: 5.8
Piotroski: 5/9

IBM

Strong Buy

70

out of 100

Grade: B-

Growth: 6.7Profit: 8.0Value: 10.0Quality: 4.0
Piotroski: 3/9Altman Z: 2.29
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DELLUndervalued (+69.5%)

Margin of Safety

+69.5%

Fair Value

$406.69

Current Price

$157.67

$249.02 discount

UndervaluedFair: $406.69Overvalued
IBMUndervalued (+53.7%)

Margin of Safety

+53.7%

Fair Value

$521.82

Current Price

$241.77

$280.05 discount

UndervaluedFair: $521.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DELL6 strengths · Avg: 9.5/10
Return on EquityProfitability
44.3%10/10

Every $100 of equity generates 44 in profit

Revenue GrowthGrowth
39.5%10/10

Revenue surging 39.5% year-over-year

EPS GrowthGrowth
57.3%10/10

Earnings expanding 57.3% YoY

Debt/EquityHealth
-11.9210/10

Conservative balance sheet, low leverage

Market CapQuality
$104.49B9/10

Large-cap with strong market position

PEG RatioValuation
0.658/10

Growing faster than its price suggests

IBM5 strengths · Avg: 9.2/10
Market CapQuality
$226.88B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.2%10/10

Every $100 of equity generates 35 in profit

EPS GrowthGrowth
89.9%10/10

Earnings expanding 89.9% YoY

Operating MarginProfitability
24.8%8/10

Strong operational efficiency at 24.8%

Free Cash FlowQuality
$3.13B8/10

Generating 3.1B in free cash flow

Areas to Watch

DELL1 concerns · Avg: 3.0/10
Profit MarginProfitability
5.2%3/10

5.2% margin — thin

IBM3 concerns · Avg: 2.7/10
PEG RatioValuation
2.264/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
2.061/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : DELL

The strongest argument for DELL centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 39.5% demonstrates continued momentum. PEG of 0.65 suggests the stock is reasonably priced for its growth.

Bull Case : IBM

The strongest argument for IBM centers on Market Cap, Return on Equity, EPS Growth. Profitability is solid with margins at 15.7% and operating margin at 24.8%. Revenue growth of 12.2% demonstrates continued momentum.

Bear Case : DELL

The primary concerns for DELL are Profit Margin.

Bear Case : IBM

The primary concerns for IBM are PEG Ratio, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.06 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

DELL carries more volatility with a beta of 1.04 — expect wider price swings.

DELL is growing revenue faster at 39.5% — sustainability is the question.

DELL generates stronger free cash flow (4.0B), providing more financial flexibility.

Bottom Line

DELL scores higher overall (78/100 vs 70/100) and 39.5% revenue growth. IBM offers better value entry with a 53.7% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Dell Technologies Inc

TECHNOLOGY · COMPUTER HARDWARE · USA

Dell Technologies Inc. designs, develops, manufactures, markets, sells and supports information technology solutions, products and services worldwide. The company is headquartered in Round Rock, 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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