Comparing ARM (ARM) & Its Rivals

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

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
ARM	$3.23 billion	$306.00 million	362.78
ARM Competitors	$20.67 billion	$806.07 million	20.03

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 summary of current ratings for ARM and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARM	2	6	16	2	2.69
ARM Competitors	2496	9766	19170	681	2.56

ARM currently has a consensus price target of $138.57, indicating a potential downside of 2.06%. As a group, “Semiconductors & related devices” companies have a potential upside of 695.89%. Given ARM’s rivals higher possible upside, analysts clearly 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. 10.6% of shares of all “Semiconductors & related devices” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

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	12.12%	18.97%	13.23%
ARM Competitors	-155.90%	-41.18%	-6.86%

Summary

ARM beats its rivals on 7 of the 12 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.