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 peers? We will compare ARM to similar companies based on the strength of its institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Earnings and Valuation
This table compares ARM and its peers gross revenue, earnings per share and valuation.
Gross Revenue | Net Income | Price/Earnings Ratio | |
ARM | $3.23 billion | $306.00 million | 236.61 |
ARM Competitors | $5.67 billion | $806.07 million | 17.95 |
ARM’s peers have higher revenue and earnings than ARM. ARM is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Insider & Institutional Ownership
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for ARM and its peers, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
ARM | 2 | 6 | 17 | 1 | 2.65 |
ARM Competitors | 2517 | 9815 | 19258 | 681 | 2.56 |
ARM currently has a consensus price target of $147.95, suggesting a potential upside of 4.22%. As a group, “Semiconductors & related devices” companies have a potential upside of 686.78%. Given ARM’s peers higher possible upside, analysts clearly believe ARM has less favorable growth aspects than its peers.
Risk & Volatility
ARM has a beta of 5.4, suggesting that its stock price is 440% more volatile than the S&P 500. Comparatively, ARM’s peers have a beta of 1.72, suggesting that their average stock price is 72% more volatile than the S&P 500.
Profitability
This table compares ARM and its peers’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
ARM | 18.13% | 13.69% | 9.70% |
ARM Competitors | -154.92% | -39.63% | -7.03% |
Summary
ARM beats its peers 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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