EPAM Systems Inc (EPAM)vsInternational Business Machines (IBM)
EPAM
EPAM Systems Inc
$99.23
-4.81%
TECHNOLOGY · Cap: $5.50B
IBM
International Business Machines
$229.76
-0.67%
TECHNOLOGY · Cap: $217.40B
Smart Verdict
WallStSmart Research — data-driven comparison
International Business Machines generates 1163% more annual revenue ($68.91B vs $5.46B). IBM leads profitability with a 15.6% profit margin vs 6.9%. EPAM appears more attractively valued with a PEG of 0.66. EPAM earns a higher WallStSmart Score of 66/100 (B-).
EPAM
Strong Buy66
out of 100
Grade: B-
IBM
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+57.1%
Fair Value
$414.58
Current Price
$99.23
$315.35 discount
Margin of Safety
-28.7%
Fair Value
$178.54
Current Price
$229.76
$51.22 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Mega-cap, among the largest globally
Every $100 of equity generates 36 in profit
Generating 4.8B in free cash flow
Areas to Watch
6.9% margin — thin
Weak financial health signals
Negative free cash flow — burning cash
Expensive relative to growth rate
Weak financial health signals
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : EPAM
The strongest argument for EPAM centers on Price/Book, Debt/Equity, Altman Z-Score. Revenue growth of 12.8% demonstrates continued momentum. PEG of 0.66 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 : EPAM
The primary concerns for EPAM are Profit Margin, Piotroski F-Score, Free Cash Flow.
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
EPAM profiles as a value stock while IBM is a mature play — different risk/reward profiles.
EPAM carries more volatility with a beta of 1.45 — expect wider price swings.
EPAM is growing revenue faster at 12.8% — sustainability is the question.
IBM generates stronger free cash flow (4.8B), providing more financial flexibility.
Bottom Line
EPAM scores higher overall (66/100 vs 60/100) and 12.8% revenue growth. Both earn "Strong 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.
EPAM Systems Inc
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
EPAM Systems, Inc. provides digital platform engineering and software development services in North America, Europe, Russia, Belarus, Kazakhstan, Ukraine, Georgia, East Asia, Southeast Asia, and Australia. The company is headquartered in Newtown, Pennsylvania.
Visit Website →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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