ARM (ARM) & The Competition Head-To-Head Analysis

ARM (NASDAQ:ARM) is one of 174 publicly-traded companies in the “Semiconductors & related devices” industry, but how does it compare to its rivals? We will compare ARM to similar companies based on the strength of its valuation, profitability, risk, earnings, dividends, institutional ownership and analyst recommendations.

Valuation & Earnings

This table compares ARM and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ARM	$3.54 billion	$306.00 million	226.65
ARM Competitors	$4.37 billion	$791.56 million	16.35

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.

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%	13.69%	9.70%
ARM Competitors	-385.04%	-70.01%	-10.38%

Risk and Volatility

ARM has a beta of 5.4, meaning that its share price is 440% more volatile than the S&P 500. Comparatively, ARM’s rivals have a beta of 1.72, meaning that their average share price is 72% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for ARM and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARM	2	6	17	1	2.65
ARM Competitors	2534	9859	19338	684	2.56

ARM presently has a consensus target price of $149.86, indicating a potential upside of 10.20%. As a group, “Semiconductors & related devices” companies have a potential upside of 559.99%. Given ARM’s rivals higher probable upside, analysts plainly believe ARM has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

7.5% of ARM shares are held by institutional investors. Comparatively, 56.8% of shares of all “Semiconductors & related devices” companies are held by institutional investors. 10.2% of shares of all “Semiconductors & related devices” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

ARM beats its rivals 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.