International Business Machines (IBM)vsThe Travelers Companies Inc (TRV)
IBM
International Business Machines
$229.76
+0.06%
TECHNOLOGY · Cap: $217.40B
TRV
The Travelers Companies Inc
$298.04
-0.30%
FINANCIAL SERVICES · Cap: $63.57B
Smart Verdict
WallStSmart Research — data-driven comparison
International Business Machines generates 41% more annual revenue ($68.91B vs $48.94B). IBM leads profitability with a 15.6% profit margin vs 15.5%. IBM appears more attractively valued with a PEG of 2.11. TRV earns a higher WallStSmart Score of 72/100 (B).
IBM
Buy60
out of 100
Grade: C
TRV
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-29.8%
Fair Value
$178.18
Current Price
$229.76
$51.58 premium
Intrinsic value data unavailable for TRV.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 36 in profit
Generating 4.8B in free cash flow
Attractively priced relative to earnings
Earnings expanding 357.6% YoY
Large-cap with strong market position
Every $100 of equity generates 25 in profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Elevated debt levels
Expensive relative to growth rate
1.0% revenue growth
Distress zone — elevated risk
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 15.6% and operating margin at 13.8%.
Bull Case : TRV
The strongest argument for TRV centers on P/E Ratio, EPS Growth, Market Cap. Profitability is solid with margins at 15.5% and operating margin at 18.7%.
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 : TRV
The primary concerns for TRV are PEG Ratio, Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
IBM profiles as a mature stock while TRV 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
TRV scores higher overall (72/100 vs 60/100), backed by strong 15.5% 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.
Visit Website →The Travelers Companies Inc
FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA
The Travelers Companies, Inc., commonly known as Travelers, is an American insurance company.
Visit Website →Compare with Other INFORMATION TECHNOLOGY SERVICES Stocks
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