WallStSmart

International Business Machines (IBM)vsPetroleo Brasileiro Petrobras SA ADR (PBR)

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Smart Verdict

WallStSmart Research — data-driven comparison

Petroleo Brasileiro Petrobras SA ADR generates 623% more annual revenue ($498.09B vs $68.91B). PBR leads profitability with a 21.6% profit margin vs 15.6%. IBM appears more attractively valued with a PEG of 2.99. PBR earns a higher WallStSmart Score of 66/100 (B-).

IBM

Buy

57

out of 100

Grade: C

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

PBR

Strong Buy

66

out of 100

Grade: B-

Growth: 2.7Profit: 8.5Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 2.08
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for IBM.

PBRUndervalued (+89.6%)

Margin of Safety

+89.6%

Fair Value

$176.60

Current Price

$17.75

$158.85 discount

UndervaluedFair: $176.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

PBR6 strengths · Avg: 9.5/10
P/E RatioValuation
5.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
32.0%10/10

Strong operational efficiency at 32.0%

Market CapQuality
$117.55B9/10

Large-cap with strong market position

Return on EquityProfitability
23.9%9/10

Every $100 of equity generates 24 in profit

Profit MarginProfitability
21.6%9/10

Keeps 22 of every $100 in revenue as profit

Areas to Watch

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

PBR3 concerns · Avg: 2.7/10
Revenue GrowthGrowth
0.4%4/10

0.4% revenue growth

PEG RatioValuation
4.572/10

Expensive relative to growth rate

EPS GrowthGrowth
-7.2%2/10

Earnings declined 7.2%

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : PBR

The strongest argument for PBR centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 21.6% and operating margin at 32.0%.

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.

Bear Case : PBR

The primary concerns for PBR are Revenue Growth, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

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

IBM carries more volatility with a beta of 0.58 — 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

PBR scores higher overall (66/100 vs 57/100), backed by strong 21.6% margins. 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.

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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Petroleo Brasileiro Petrobras SA ADR

ENERGY · OIL & GAS INTEGRATED · USA

Petrleo Brasileiro SA - Petrobras produces and sells oil and gas in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.

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