LIVE
HPE
Hewlett Packard Enterprise Company · Technology
$47.41
+45.34% this month
VERSUS
⟷
COMPARE
IBM
International Business Machines Corporation · Technology
$249.10
+12.04% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
HPE
4
IBM
1
Comparison scoreboard
HPE LEADS 4/5AI Score
HPE ✓62.4
IBM 49.8
1Y Return
HPE ✓+164.86%
IBM -11.99%
Fwd P/E
HPE ✓12.05
IBM 20.28
Target Up.
HPE ✓+33.13%
IBM +6.85%
Op. Margin
HPE 8.70%
IBM ✓13.81%
Metrics last refreshed: 6/20/2026
Quick take
HPE vs IBM Stock Comparison: AI Score, Valuation, Performance and Upside
HPE and IBM both address enterprise hybrid cloud needs but through different approaches: HPE provides the infrastructure layer (servers, storage, networking, GreenLake as-a-service), while IBM provides the software and consulting layer (Red Hat, watsonx, AI services). They are more complementary than directly competitive, but investors choosing between them are deciding whether to buy the infrastructure or the software/services side of enterprise AI adoption.
HPE vs IBM is a decision between enterprise IT infrastructure and enterprise IT software/services within the hybrid cloud and AI theme — HPE wins if enterprises accelerate on-prem AI server and GreenLake deployments, while IBM wins if watsonx and Red Hat drive software-led recurring revenue with improving margins.
Live analysis · updated 6/20/2026
HPE holds the edge across 4 of 5 key metrics in this comparison. HPE leads on both 1-year return (+164.86%) and forward P/E (12.05x vs 20.28x for IBM), a relatively favorable combination of momentum and valuation. On fundamentals, HPE is growing revenue faster (40.00%), while IBM maintains the higher operating margin (13.81%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for HPE (+33.13%) than for IBM (+6.85%).
Normalized 1Y performance
HPE
IBM
Recent returns
HPE
IBM
Analyst price targets & sentiment
HPE
Price target range
analyst mean$64.13
current price$47.41
+33.1% upside to analyst mean
IBM · 20 analysts
STRONG BUYHOLDSTRONG SELL
Buy (2.4/5.0)
Price target range
analyst low$170.00
analyst high$300.00
analyst mean$290.89
current price$249.10
+6.8% upside to analyst mean
Who should consider this stock?
HPE may suit investors who:
- →prefer infrastructure hardware and as-a-service delivery over software and consulting revenue models
- →value HPC exposure via Cray for government and research market differentiation
- →want a hybrid cloud infrastructure play that benefits directly from enterprise AI server build-outs
- →are comfortable with thinner margins than software companies and execution risk on GreenLake adoption
IBM may suit investors who:
- →prefer a software-heavy recurring revenue model (Red Hat, automation) over hardware-led infrastructure
- →value AI consulting and watsonx platform exposure to enterprise AI deployment in regulated industries
- →want a high-dividend yield alongside dividend growth from a stable, profitable technology company
- →are comfortable with slower organic growth in exchange for margin stability and cash flow predictability
Performance & AI score
| Metric | HPE | IBM |
|---|---|---|
| AI score | 62.4 | 49.8 |
| AI rank | #126 | #486 |
| Latest close | $47.41 | $249.10 |
| 1M return | +45.34% | +12.04% |
| 6M return | +97.38% | -17.88% |
| 1Y return | +164.86% | -11.99% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | HPE | IBM |
|---|---|---|
| 1Y ago | $26.66K (+166.6%) started 2025-06-18 | $8.8K (-12.0%) started 2025-06-18 |
| 5Y ago | $40.61K (+306.1%) started 2021-06-21 | $25.38K (+153.8%) started 2021-06-21 |
| 10Y ago | $71.79K (+617.9%) started 2016-06-20 | $40.56K (+305.6%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | HPE | IBM |
|---|---|---|
| Market cap | $63.79B | $255.87B |
| Trailing P/E | 45.02 | 24.09 |
| Forward P/E | 12.05 | 20.28 |
| Price/Sales | N/A | 3.98 |
| EV/Revenue | 2.06 | 4.56 |
| Analyst target | $64.13 | $290.89 |
| Target upside | +33.13% | +6.85% |
Growth, profitability & risk
| Metric | HPE | IBM |
|---|---|---|
| Revenue growth | 40.00% | 9.50% |
| Earnings growth | -30.30% | 14.20% |
| EPS growth | -30.30% | +14.20% |
| FCF margin | +9.89% | +18.98% |
| Operating margin | 8.70% | 13.81% |
| Profit margin | 4.01% | 15.61% |
| ROIC proxy | 6.31% | 35.77% |
| Return on equity | 6.31% | 35.77% |
| Dividend yield | 1.18% | 2.48% |
| Beta | 1.45 | 0.67 |
| Debt/equity | 84.03 | 211.17 |
| Current ratio | 1.09 | 0.80 |
| Quick ratio | 0.57 | 0.64 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
HPE max drawdown23.81%
IBM max drawdown31.86%
HPE max wkly drop17.52%
IBM max wkly drop15.72%
5Y risk snapshot
HPE max drawdown48.36%
IBM max drawdown31.86%
HPE max wkly drop20.76%
IBM max wkly drop15.72%
10Y risk snapshot
HPE max drawdown56.87%
IBM max drawdown40.59%
HPE max wkly drop28.21%
IBM max wkly drop20.64%
Performance metrics by period
| Period | Metric | HPE | IBM |
|---|---|---|---|
| 1Y | Growth | +166.65% | -12.04% |
| CAGR | +167.02% | -12.06% | |
| Sharpe ratio | 2.16 | -0.24 | |
| Max drawdown | 23.81% | 31.86% | |
| Max daily drop | 10.14% | 13.15% | |
| Max wkly drop | 17.52% | 15.72% | |
| 5Y | Growth | +260.51% | +110.67% |
| CAGR | +29.29% | +16.10% | |
| Sharpe ratio | 0.74 | 0.52 | |
| Max drawdown | 48.36% | 31.86% | |
| Max daily drop | 15.14% | 13.15% | |
| Max wkly drop | 20.76% | 15.72% | |
| 10Y | Growth | +440.92% | +151.19% |
| CAGR | +18.40% | +9.65% | |
| Sharpe ratio | 0.52 | 0.31 | |
| Max drawdown | 56.87% | 40.59% | |
| Max daily drop | 15.31% | 13.15% | |
| Max wkly drop | 28.21% | 20.64% |
Business comparison
| Category | HPE | IBM |
|---|---|---|
| Company | Hewlett Packard Enterprise Company | International Business Machines Corporation |
| Sector | Technology | Technology |
| Industry | N/A | Information Technology Services |
| Core business | HPE sells enterprise compute, storage, networking, and hybrid cloud infrastructure. Its GreenLake platform delivers on-premises infrastructure as a service, generating growing annual recurring revenue. HPE serves enterprise, government, research, and service provider customers, with specialized strength in HPC via Cray supercomputers. | IBM is a hybrid cloud and AI technology company following the 2021 spin-off of its managed infrastructure services business (now Kyndryl). The remaining IBM consists of software (Red Hat, Automation, Data & AI), consulting (formerly GBS), and infrastructure (mainframes, storage). IBM's AI strategy is centered on watsonx, its enterprise AI platform for building, deploying, and governing large language models in regulated industries such as banking, insurance, and government. |
| Investor focus | Investors track GreenLake ARR growth, AI server and HPC backlog, gross margins under server pricing pressure, and the pace of enterprise adoption of as-a-service infrastructure models. | Investors focus on software segment revenue growth (particularly Red Hat and AI/automation), consulting revenue as enterprise AI adoption drives services demand, free cash flow generation relative to the dividend, and watsonx enterprise adoption rates. |
HPE strengths
- →GreenLake as-a-service model is creating a recurring revenue base that improves revenue predictability
- →Cray HPC business serves strategic government and research customers with high switching costs
- →Aruba networking provides a growing enterprise WLAN and campus switching franchise with software attach
IBM strengths
- →Red Hat OpenShift is the leading enterprise Kubernetes platform, deeply embedded in hybrid cloud deployments across Fortune 500 companies
- →Watsonx positions IBM as an enterprise AI governance and deployment platform in regulated industries with data residency and compliance requirements
- →Mainframe Z-series creates a captive, high-margin hardware and software revenue stream with near-zero churn from banking and insurance customers
Risks to watch — HPE
- →GreenLake ARR growth has trailed initial targets, raising questions about enterprise willingness to pay for on-prem as-a-service
- →AI server margins are thin due to GPU component costs, and HPE has less AI server market share than Dell
- →Intense competition across server, storage, and networking from Dell, Cisco, and pure-play cloud providers
Risks to watch — IBM
- →Consulting revenue is sensitive to enterprise IT budget cuts and AI automation reducing the services headcount model
- →Watsonx adoption has been slower than IBM initially projected, competing against Azure OpenAI, AWS Bedrock, and Google Vertex AI
- →IBM's organic software growth rates are lower than pure-play SaaS companies, limiting multiple expansion potential
Frequently asked questions
Free public comparison
Want deeper AI forecasts?
This comparison page is public and free forever. Subscribers can unlock saved watchlists, full AI rankings, detailed forecasts, and interactive analysis tools.
Related comparisons
HPE vs DELL
Which Enterprise IT Stock Is the Better Buy?
HPE vs NTAP
Enterprise Server Scale vs Cloud Storage Specialist
HPE vs CSCO
Enterprise Infrastructure Rivals: Servers vs Networking
PLTR vs IBM
AI-Native vs Legacy Enterprise AI
DELL vs HPE
AI Server Leader vs Hybrid Cloud Specialist
IBM vs ORCL
Legacy Giants Battling Into the AI Era
More comparisons
Browse all 1,000 comparisons →