ARM (NASDAQ:ARM – Get Free Report) is one of 174 public companies in the “Semiconductors & related devices” industry, but how does it contrast to its rivals? We will compare ARM to similar companies based on the strength of its valuation, risk, institutional ownership, dividends, profitability, earnings and analyst recommendations.
Earnings and Valuation
This table compares ARM and its rivals revenue, earnings per share and valuation.
Gross Revenue | Net Income | Price/Earnings Ratio | |
ARM | $3.54 billion | $306.00 million | 233.12 |
ARM Competitors | $5.73 billion | $806.07 million | 17.71 |
ARM’s rivals have higher revenue and earnings than ARM. ARM is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Insider and Institutional Ownership
Analyst Ratings
This is a breakdown of recent recommendations for ARM and its rivals, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
ARM | 2 | 6 | 17 | 1 | 2.65 |
ARM Competitors | 2516 | 9809 | 19251 | 681 | 2.56 |
ARM presently has a consensus price target of $145.57, suggesting a potential upside of 4.08%. As a group, “Semiconductors & related devices” companies have a potential upside of 695.19%. Given ARM’s rivals higher possible upside, analysts clearly believe ARM has less favorable growth aspects than its rivals.
Profitability
This table compares ARM and its rivals’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
ARM | 18.13% | 14.14% | 9.85% |
ARM Competitors | -154.89% | -39.60% | -7.01% |
Volatility & Risk
ARM has a beta of 5.4, suggesting that its share price is 440% more volatile than the S&P 500. Comparatively, ARM’s rivals have a beta of 1.72, suggesting that their average share price is 72% more volatile than the S&P 500.
Summary
ARM beats its rivals on 8 of the 13 factors compared.
About ARM
Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. It offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services. Its products are used in various markets, such as automotive, computing infrastructure, consumer technologies, and Internet of things. The company operates in the United States, the People's Republic of China, Taiwan, South Korea, and internationally. The company was founded in 1990 and is headquartered in Cambridge, the United Kingdom. Arm Holdings plc operates as a subsidiary of Kronos II LLC.
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