Critical Contrast: ARM (NASDAQ:ARM) & Ichor (NASDAQ:ICHR)

ARM (NASDAQ:ARM) and Ichor (NASDAQ:ICHR) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.

Valuation & Earnings

This table compares ARM and Ichor’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARM	$2.66 billion	20.62	N/A	N/A	N/A
Ichor	$1.28 billion	0.60	$72.80 million	$0.78	33.51

Ichor has lower revenue, but higher earnings than ARM.

Institutional & Insider Ownership

89.7% of Ichor shares are owned by institutional investors. 2.8% of Ichor 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for ARM and Ichor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARM	1	7	14	0	2.59
Ichor	0	1	5	0	2.83

Ichor has a consensus target price of $38.83, indicating a potential upside of 48.56%. Given Ichor’s stronger consensus rating and higher probable upside, analysts plainly believe Ichor is more favorable than ARM.

Profitability

This table compares ARM and Ichor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARM	N/A	N/A	N/A
Ichor	2.11%	9.38%	5.16%

Summary

Ichor beats ARM on 7 of the 10 factors compared between the two stocks.

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.

About Ichor

Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment. It primarily offers gas and chemical delivery systems and subsystems that are used in the manufacturing of semiconductor devices. The company's gas delivery subsystems deliver, monitor, and control gases used in semiconductor manufacturing processes, such as etch and deposition; and chemical delivery subsystems blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes comprising chemical-mechanical planarization, electroplating, and cleaning. In addition, it manufactures precision machined components, weldments, electron beam, laser-welded components, precision vacuum and hydrogen brazing, surface treatment technologies, and other proprietary products. The company primarily markets its products to equipment OEMs in the semiconductor equipment in Japan. Ichor Holdings, Ltd. was incorporated in 1999 and is headquartered in Fremont, California.