ARM (NASDAQ:ARM – Get Free Report) is one of 174 public companies in the “Semiconductors & related devices” industry, but how does it compare to its competitors? We will compare ARM to related businesses based on the strength of its dividends, earnings, risk, institutional ownership, profitability, valuation and analyst recommendations.
Volatility and Risk
ARM has a beta of 5.4, meaning that its share price is 440% more volatile than the S&P 500. Comparatively, ARM’s competitors have a beta of 1.72, meaning that their average share price is 72% more volatile than the S&P 500.
Insider and Institutional Ownership
7.5% of ARM shares are owned by institutional investors. Comparatively, 56.8% of shares of all “Semiconductors & related devices” companies are owned by institutional investors. 9.9% of shares of all “Semiconductors & related devices” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
ARM | 2 | 6 | 16 | 2 | 2.69 |
ARM Competitors | 2502 | 9779 | 19201 | 681 | 2.56 |
ARM currently has a consensus target price of $138.57, suggesting a potential downside of 1.48%. As a group, “Semiconductors & related devices” companies have a potential upside of 686.24%. Given ARM’s competitors higher possible upside, analysts clearly believe ARM has less favorable growth aspects than its competitors.
Profitability
This table compares ARM and its competitors’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
ARM | 12.12% | 18.97% | 13.23% |
ARM Competitors | -156.23% | -41.29% | -6.94% |
Earnings & Valuation
This table compares ARM and its competitors revenue, earnings per share and valuation.
Gross Revenue | Net Income | Price/Earnings Ratio | |
ARM | $3.23 billion | $306.00 million | 360.65 |
ARM Competitors | $20.61 billion | $806.07 million | 18.89 |
ARM’s competitors have higher revenue and earnings than ARM. ARM is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Summary
ARM beats its competitors on 8 of the 13 factors compared.
ARM Company Profile
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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