WallStSmart

International Business Machines (IBM)vsShell PLC ADR (SHEL)

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Smart Verdict

WallStSmart Research — data-driven comparison

Shell PLC ADR generates 295% more annual revenue ($266.89B vs $67.53B). IBM leads profitability with a 15.7% profit margin vs 6.7%. SHEL appears more attractively valued with a PEG of 2.29. IBM earns a higher WallStSmart Score of 70/100 (B-).

IBM

Strong Buy

70

out of 100

Grade: B-

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

SHEL

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 5.5Value: 10.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

IBMUndervalued (+52.0%)

Margin of Safety

+52.0%

Fair Value

$521.35

Current Price

$251.60

$269.75 discount

UndervaluedFair: $521.35Overvalued
SHELUndervalued (+71.2%)

Margin of Safety

+71.2%

Fair Value

$280.80

Current Price

$91.19

$189.61 discount

UndervaluedFair: $280.80Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

IBM5 strengths · Avg: 9.2/10
Market CapQuality
$233.90B10/10

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

SHEL5 strengths · Avg: 8.8/10
Market CapQuality
$260.84B10/10

Mega-cap, among the largest globally

EPS GrowthGrowth
376.2%10/10

Earnings expanding 376.2% YoY

P/E RatioValuation
15.5x8/10

Attractively priced relative to earnings

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$3.45B8/10

Generating 3.4B in free cash flow

Areas to Watch

IBM3 concerns · Avg: 2.7/10
PEG RatioValuation
2.314/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
2.061/10

Elevated debt levels

SHEL3 concerns · Avg: 3.0/10
PEG RatioValuation
2.294/10

Expensive relative to growth rate

Profit MarginProfitability
6.7%3/10

6.7% margin — thin

Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : SHEL

The strongest argument for SHEL centers on Market Cap, EPS Growth, P/E Ratio.

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.

Bear Case : SHEL

The primary concerns for SHEL are PEG Ratio, Profit Margin, Revenue Growth.

Key Dynamics to Monitor

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

IBM carries more volatility with a beta of 0.71 — expect wider price swings.

IBM is growing revenue faster at 12.2% — sustainability is the question.

SHEL generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

IBM scores higher overall (70/100 vs 57/100), backed by strong 15.7% margins and 12.2% revenue growth. SHEL offers better value entry with a 71.2% margin of safety. 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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Shell PLC ADR

ENERGY · OIL & GAS INTEGRATED · USA

Shell plc is a global petrochemical and energy company. The company is headquartered in The Hague, the Netherlands.

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