International Business Machines (NYSE:IBM – Get Free Report) and Nebius Group (NASDAQ:NBIS – Get Free Report) are both large-cap technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
Risk & Volatility
International Business Machines has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Nebius Group has a beta of 4.23, meaning that its stock price is 323% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for International Business Machines and Nebius Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| International Business Machines | 1 | 11 | 15 | 0 | 2.52 |
| Nebius Group | 0 | 7 | 9 | 2 | 2.72 |
Valuation & Earnings
This table compares International Business Machines and Nebius Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| International Business Machines | $69.10 billion | 3.23 | $10.59 billion | $11.27 | 21.04 |
| Nebius Group | $529.80 million | 89.77 | $82.50 million | $3.10 | 60.64 |
International Business Machines has higher revenue and earnings than Nebius Group. International Business Machines is trading at a lower price-to-earnings ratio than Nebius Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
59.0% of International Business Machines shares are held by institutional investors. Comparatively, 21.9% of Nebius Group shares are held by institutional investors. 0.3% of International Business Machines shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares International Business Machines and Nebius Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| International Business Machines | 15.52% | 35.65% | 7.54% |
| Nebius Group | 95.27% | -9.11% | -3.73% |
Summary
International Business Machines beats Nebius Group on 8 of the 15 factors compared between the two stocks.
About International Business Machines
International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment focuses on skills integration for strategy, experience, technology, and operations by domain and industry. The Infrastructure segment provides on-premises and cloud based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. The Financing segment offers client and commercial financing, facilitates IBM clients’ acquisition of hardware, software, and services. The company has a strategic partnership to various companies including hyperscalers, service providers, global system integrators, and software and hardware vendors that includes Adobe, Amazon Web services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others. The company was formerly known as Computing-Tabulating-Recording Co. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.
About Nebius Group
Nebius Group N.V., a technology company, builds intelligent products and services powered by machine learning and other technologies to help consumers and businesses navigate the online and offline world. The company’s services include Nebius AI, an AI-centric cloud platform that offers infrastructure and computing capability for AI deployment and machine-learning oriented solutions; and Toloka AI that offers generative AI (GenAI) solutions at every stage of the GenAI lifecycle, such as data annotation and generation, model training and fine-tuning, and quality assessment of large language model for accuracy and reliability. It also offers Avride, an autonomous driving solution which targets ride-hailing, logistics, e-commerce, and food/grocery delivery as application domains, as well as focuses on autonomous vehicles and delivery robots; and TripleTen, an EdTech service that prepares specialists for STEM roles, and equipping them with essential technology skills. The company was formerly known as Yandex N.V. and changed its name to Nebius Group N.V. in August 2024. Nebius Group N.V. was founded in 1989 and is based in Schiphol, the Netherlands.
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