ARM (NASDAQ:ARMH) and The Competition Head-To-Head Review

ARM (NASDAQ: ARMH) is one of 100 public companies in the “Semiconductors” industry, but how does it contrast to its rivals? We will compare ARM to similar companies based on the strength of its profitability, dividends, valuation, analyst recommendations, institutional ownership, earnings and risk.

Insider & Institutional Ownership

19.7% of ARM shares are held by institutional investors. Comparatively, 66.2% of shares of all “Semiconductors” companies are held by institutional investors. 3.0% of ARM shares are held by company insiders. Comparatively, 6.2% of shares of all “Semiconductors” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

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 33.10% 19.72% 16.87%
ARM Competitors -43.89% 0.61% 0.81%

Earnings & Valuation

This table compares ARM and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
ARM N/A N/A 70.59
ARM Competitors $4.38 billion $571.99 million 40.85

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.

Analyst Ratings

This is a breakdown of current recommendations for ARM and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ARM 0 0 1 0 3.00
ARM Competitors 967 4825 8801 379 2.57

As a group, “Semiconductors” companies have a potential upside of 9.24%. Given ARM’s rivals higher probable upside, analysts clearly believe ARM has less favorable growth aspects than its rivals.

Dividends

ARM pays an annual dividend of $0.34 per share and has a dividend yield of 0.5%. ARM pays out 35.4% of its earnings in the form of a dividend. As a group, “Semiconductors” companies pay a dividend yield of 1.5% and pay out 58.5% of their earnings in the form of a dividend.

Summary

ARM beats its rivals on 7 of the 13 factors compared.

About ARM

ARM Holdings plc (ARM) is a company engaged in designing a range of inter-related intellectual property (IP), including microprocessors, Physical IP, and supporting software and tools. Its product offering includes 16/32/64-bit reduced instruction set computing (RISC) microprocessors, data engines, graphics processors, digital libraries, embedded memories, peripherals, software and development tools, as well as analog functions and high-speed connectivity products. The Company licenses and sells its technology and products to international electronics companies, which in turn manufacture, market and sell microprocessors, application-specific integrated circuits (ASICs), application-specific standard processors (ASSPs) and microcontrollers (MCUs) based on ARM’s technology to systems companies for incorporation into a range of end products. Its principal geographic markets are Europe, the United States and Asia Pacific.

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