WallStSmart

Elevance Health Inc (ELV)vsInternational Business Machines (IBM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Elevance Health Inc generates 191% more annual revenue ($200.42B vs $68.91B). IBM leads profitability with a 15.6% profit margin vs 2.6%. ELV appears more attractively valued with a PEG of 1.43. IBM earns a higher WallStSmart Score of 60/100 (C).

ELV

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 5.5Value: 8.0Quality: 5.0
Piotroski: 3/9

IBM

Buy

60

out of 100

Grade: C

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ELVUndervalued (+63.5%)

Margin of Safety

+63.5%

Fair Value

$1011.48

Current Price

$374.71

$636.77 discount

UndervaluedFair: $1011.48Overvalued
IBMSignificantly Overvalued (-28.5%)

Margin of Safety

-28.5%

Fair Value

$178.18

Current Price

$225.74

$47.56 premium

UndervaluedFair: $178.18Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ELV4 strengths · Avg: 8.3/10
Market CapQuality
$80.93B9/10

Large-cap with strong market position

P/E RatioValuation
15.8x8/10

Attractively priced relative to earnings

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$4.10B8/10

Generating 4.1B in free cash flow

IBM3 strengths · Avg: 9.3/10
Market CapQuality
$218.24B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.8%10/10

Every $100 of equity generates 36 in profit

Free Cash FlowQuality
$4.78B8/10

Generating 4.8B in free cash flow

Areas to Watch

ELV4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.6%4/10

2.6% revenue growth

Profit MarginProfitability
2.6%3/10

2.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-16.8%2/10

Earnings declined 16.8%

IBM3 concerns · Avg: 2.7/10
PEG RatioValuation
2.184/10

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 : ELV

The strongest argument for ELV centers on Market Cap, P/E Ratio, Price/Book. PEG of 1.43 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 15.6% and operating margin at 13.8%.

Bear Case : ELV

The primary concerns for ELV are Revenue Growth, Profit Margin, Piotroski F-Score. Thin 2.6% margins leave little buffer for downturns.

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

ELV profiles as a value stock while IBM is a mature play — different risk/reward profiles.

IBM carries more volatility with a beta of 0.69 — expect wider price swings.

IBM is growing revenue faster at 9.5% — sustainability is the question.

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

Bottom Line

IBM scores higher overall (60/100 vs 56/100), backed by strong 15.6% margins. ELV offers better value entry with a 63.5% margin of safety. Both earn "Buy" and "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.

Elevance Health Inc

HEALTHCARE · HEALTHCARE PLANS · USA

Elevance Health Inc. is a health benefits company. The company is headquartered in Indianapolis, Indiana.

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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