International Business Machines (IBM)vsPenguin Solutions, Inc. (PENG)
IBM
International Business Machines
$237.28
+1.65%
TECHNOLOGY · Cap: $221.54B
PENG
Penguin Solutions, Inc.
$58.43
+3.86%
TECHNOLOGY · Cap: $2.98B
Smart Verdict
WallStSmart Research — data-driven comparison
International Business Machines generates 4498% more annual revenue ($69.09B vs $1.50B). IBM leads profitability with a 15.5% profit margin vs 6.5%. IBM trades at a lower P/E of 20.9x. PENG earns a higher WallStSmart Score of 60/100 (C+).
IBM
Buy54
out of 100
Grade: C-
PENG
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-80.6%
Fair Value
$130.63
Current Price
$237.28
$106.65 premium
Intrinsic value data unavailable for PENG.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Generating 2.2B in free cash flow
Revenue surging 47.6% year-over-year
Earnings expanding 544.0% YoY
Areas to Watch
Expensive relative to growth rate
1.1% revenue growth
Elevated debt levels
Weak financial health signals
Premium valuation, high expectations priced in
Grey zone — moderate risk
6.5% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : PENG
The strongest argument for PENG centers on Revenue Growth, EPS Growth. Revenue growth of 47.6% demonstrates continued momentum.
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.
Bear Case : PENG
The primary concerns for PENG are P/E Ratio, Altman Z-Score, Profit Margin.
Key Dynamics to Monitor
IBM profiles as a value stock while PENG is a hypergrowth play — different risk/reward profiles.
PENG carries more volatility with a beta of 2.83 — expect wider price swings.
PENG is growing revenue faster at 47.6% — sustainability is the question.
IBM generates stronger free cash flow (2.2B), providing more financial flexibility.
Bottom Line
PENG scores higher overall (60/100 vs 54/100) and 47.6% revenue growth. 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.
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.
Visit Website →Penguin Solutions, Inc.
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
Penguin Solutions, Inc., a memory-focused company, engages in the designing and development of enterprise solutions in the United States, China, Europe, and internationally. The company is headquartered in Grand Cayman, Cayman Islands.
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