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ACN vs. ARM: A Head-to-Head Stock Comparison

Updated

Here’s a clear look at ACN and ARM, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

With ACN at 198.90 billion USD and ARM at 137.89 billion USD, their market capitalizations sit in the same ballpark.

ARM carries a higher beta at 4.41, indicating it’s more sensitive to market moves, while ACN remains steadier at 1.34.

ARM is an ADR, letting U.S. buyers tap its non-U.S. business directly, unlike ACN, which is purely domestic.

SymbolACNARM
Company NameAccenture plcArm Holdings plc American Depositary Shares
CountryIEGB
SectorTechnologyTechnology
IndustryInformation Technology ServicesSemiconductors
CEOMs. Julie T. Spellman Sweet J.D.Mr. Rene Anthony Andrada Haas
Price317.72 USD130.45 USD
Market Cap198.90 billion USD137.89 billion USD
Beta1.344.41
ExchangeNYSENASDAQ
IPO DateJuly 19, 2001September 14, 2023
ADRNoYes

Performance Comparison

This chart compares the performance of ACN and ARM over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

The section examines key financial ratios to assess the valuation of ACN and ARM based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • ARM features a high P/E of 170.26, indicating strong growth expectations, compared to ACN at 25.92, which trades at a more standard valuation based on its current earnings.
SymbolACNARM
Price-to-Earnings Ratio (P/E, TTM)25.92170.26
Forward PEG Ratio (TTM)2.756.09
Price-to-Sales Ratio (P/S, TTM)2.9637.33
Price-to-Book Ratio (P/B, TTM)6.8121.38
Price-to-Free Cash Flow Ratio (P/FCF, TTM)20.41220.26
EV-to-EBITDA (TTM)16.76221.33
EV-to-Sales (TTM)2.9536.85
EV-to-Free Cash Flow (TTM)20.36217.45

Dividend Comparison

ACN delivers a 1.80% dividend yield, blending income with growth, whereas ARM appears to retain its profits, possibly to fund operations, R&D, or other growth initiatives.

SymbolACNARM
Dividend Yield (TTM)1.80%0.00%

Financial Strength Metrics Comparison

This section dives into the financial resilience of ACN and ARM, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • ACN (at 79.65) covers its interest payments, while ARM shows “--” for minimal debt service.
SymbolACNARM
Current Ratio (TTM)1.484.96
Quick Ratio (TTM)1.484.96
Debt-to-Equity Ratio (TTM)0.280.04
Debt-to-Assets Ratio (TTM)0.130.03
Interest Coverage Ratio (TTM)79.65--