International Business Machines (NYSE:IBM) & Nebius Group (NASDAQ:NBIS) Head to Head Contrast

International Business Machines (NYSE:IBM) and Nebius Group (NASDAQ:NBIS) are both large-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for International Business Machines and Nebius Group, as reported by MarketBeat.com.

	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

International Business Machines currently has a consensus target price of $265.40, indicating a potential upside of 12.92%. Nebius Group has a consensus target price of $222.29, indicating a potential downside of 1.53%. Given International Business Machines’ higher probable upside, analysts plainly believe International Business Machines is more favorable than Nebius Group.

Insider & Institutional Ownership

59.0% of International Business Machines shares are owned by institutional investors. Comparatively, 21.9% of Nebius Group shares are owned by institutional investors. 0.3% of International Business Machines shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company 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%

Earnings & Valuation

This table compares International Business Machines and Nebius Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Business Machines	$67.53 billion	3.28	$10.59 billion	$11.27	20.86
Nebius Group	$529.80 million	107.81	$82.50 million	$3.10	72.82

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.

Volatility and Risk

International Business Machines has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Nebius Group has a beta of 4.23, indicating that its share price is 323% more volatile than the S&P 500.

Summary

International Business Machines beats Nebius Group on 9 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.