IBM vs INFY

For growth investors, International Business Machines Corporation (IBM) is the stronger pick with 7.

6% revenue growth year-over-year, versus 3. 9% for Infosys Limited (INFY). Infosys Limited (INFY) offers the better valuation at 16. 4x trailing P/E (16. 4x forward), making it the more compelling value choice. Analysts rate International Business Machines Corporation (IBM) a "Hold" — based on 50 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Infosys Limited (INFY) is the cheapest at 16.

4x versus International Business Machines Corporation at 20. 5x. On forward P/E, Infosys Limited is actually cheaper at 16. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: International Business Machines Corporation wins at 1. 49x versus Infosys Limited's 2. 45x — a reasonable growth-adjusted valuation.

Over the past 5 years, International Business Machines Corporation (IBM) delivered a total return of +88.

9%, compared to -19. 2% for Infosys Limited (INFY). Over 10 years, the gap is even starker: IBM returned +108. 4% versus INFY's +75. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Infosys Limited (INFY) is the lower-risk stock at 0.

83β versus International Business Machines Corporation's 1. 03β — meaning IBM is approximately 25% more volatile than INFY relative to the S&P 500. On balance sheet safety, Infosys Limited (INFY) carries a lower debt/equity ratio of 9% versus 2% for International Business Machines Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), International Business Machines Corporation (IBM) is pulling ahead at 7.

6% versus 3. 9% for Infosys Limited (INFY). On earnings-per-share growth, the picture is similar: International Business Machines Corporation grew EPS 73. 7% year-over-year, compared to 0. 0% for Infosys Limited. Over a 3-year CAGR, INFY leads at 5. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Infosys Limited (INFY) is the more profitable company, earning 16.

4% net margin versus 15. 7% for International Business Machines Corporation — meaning it keeps 16. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: INFY leads at 21. 1% versus 15. 3% for IBM. At the gross margin level — before operating expenses — IBM leads at 59. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, International Business Machines Corporation (IBM) is the more undervalued stock at a PEG of 1. 49x versus Infosys Limited's 2. 45x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Infosys Limited (INFY) trades at 16. 4x forward P/E versus 18. 4x for International Business Machines Corporation — 2. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for INFY: 35. 6% to $16. 90.

All stocks in this comparison pay dividends.

Infosys Limited (INFY) offers the highest yield at 4. 7%, versus 2. 9% for International Business Machines Corporation (IBM).

For long-horizon retirement investors, Infosys Limited (INFY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

83), 4. 7% yield). Both have compounded well over 10 years (INFY: +75. 0%, IBM: +108. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: IBM is a large-cap quality compounder stock; INFY is a mid-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.