INTERNATIONAL BUSINESS MACHINES CORP vs WESTERN DIGITAL CORPORATION, two Computer Hardware stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Western Digital currently keeps 40.7 cents of each revenue dollar as net income, IBM 12.5, and the gap is a cycle meeting a conglomerate: drive pricing at its peak against a services-heavy mix that never spikes. IBM's compensations are structural, a 56.2% gross margin, a 2.5% dividend, 5% of its price returned as free cash yearly, against WDC's 1.3% yield and token payout. The multiples price the reversal everyone expects: 34.5 times WDC's peak earnings, 24 times IBM's steady ones, a modest premium for spectacular current numbers. WDC carries the lighter balance sheet, 0.33 to equity against 2. Boring priced as boring, brilliant priced as temporary.
Comparison updated 2026-07-10.
| Metric | IBM | WDC |
|---|---|---|
| Price | $271.41 | $578.52 |
| Market cap | $258.4B | $223.9B |
| Sector | Computer Hardware | Computer Hardware |
| Stage | Mature | Growth |
| P/E | 23.9 | 34.5 |
| P/B | 7.82 | 23.13 |
| P/S | 3.75 | 19.01 |
| EV/EBITDA | 565.7 | 61.5 |
| Revenue growth | +9.6% | +32.0% |
| Gross margin | 56.2% | 50.2% |
| Operating margin | — | 35.7% |
| Net margin | 12.5% | 40.7% |
| Return on equity | 26.1% | 49.6% |
| Return on assets | 5.5% | 31.9% |
| Return on invested capital | — | 26.5% |
| FCF yield | 5.0% | 1.3% |
| Dividend yield | 2.5% | 0.0% |
| Debt / equity | 2.01 | 0.33 |
| Current ratio | 0.80 | 1.49 |
| Altman Z (solvency) | 3.03 | 7.86 |
| Piotroski F (quality) | 5 / 9 | 6 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.