Analyzing ARM (NASDAQ:ARM) and ams-OSRAM (OTCMKTS:AMSSY)

ARM (NASDAQ:ARM) and ams-OSRAM (OTCMKTS:AMSSY) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Earnings and Valuation

This table compares ARM and ams-OSRAM”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARM	$4.41 billion	32.33	$792.00 million	$0.78	173.09
ams-OSRAM	$3.71 billion	0.23	-$850.53 million	($0.90)	-4.66

ARM has higher revenue and earnings than ams-OSRAM. ams-OSRAM is trading at a lower price-to-earnings ratio than ARM, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ARM and ams-OSRAM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARM	18.81%	15.03%	11.39%
ams-OSRAM	-3.27%	3.21%	0.56%

Insider & Institutional Ownership

7.5% of ARM shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

ARM has a beta of 4.11, indicating that its stock price is 311% more volatile than the S&P 500. Comparatively, ams-OSRAM has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for ARM and ams-OSRAM, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARM	0	8	18	1	2.74
ams-OSRAM	1	1	0	0	1.50

ARM presently has a consensus target price of $179.80, indicating a potential upside of 33.18%. Given ARM’s stronger consensus rating and higher probable upside, analysts plainly believe ARM is more favorable than ams-OSRAM.

Summary

ARM beats ams-OSRAM on 14 of the 14 factors compared between the two stocks.

About ARM

Arm Holdings Plc engages in the licensing, marketing, research, and development of microprocessors, systems IP, graphics processing units, physical IP and associated systems IP, software, and tools. It operates through the following geographical segments: United Kingdom, United States, and Other Countries. The company was founded on November 12, 1990 and is headquartered in Cambridge, the United Kingdom.

About ams-OSRAM

ams-OSRAM AG designs, manufactures, and sells LED and optical sensor solutions in Europe, the Middle East, Africa, the Americas, and Asia/Pacific. The company operates in Semiconductors and Lamps & Systems segments. The Semiconductors segment offers semiconductor-based products and solutions, such as high-performance LEDs, lasers, and optical sensors for automotive, consumer, and industrial and medical technology end markets. The Lamps & Systems segment provides lamps and lighting systems for the automotive, industrial, and medical end markets. The company was formerly known as ams AG and changed its name to ams-OSRAM AG in January 2022. ams-OSRAM AG is headquartered in Premstätten, Austria.