ACN vs. ARM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ACN and ARM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
ACN is a standard domestic listing, while ARM trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.
| Symbol | ACN | ARM |
|---|---|---|
| Company Name | Accenture plc | Arm Holdings plc |
| Country | Ireland | United Kingdom |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | IT Services | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 157.35 billion USD | 176.65 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | July 19, 2001 | September 14, 2023 |
| Security Type | Common Stock | ADR |
Historical Performance
This chart compares the performance of ACN and ARM by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | ACN | ARM |
|---|---|---|
| 5-Day Price Return | 3.54% | 9.61% |
| 13-Week Price Return | -14.94% | 12.67% |
| 26-Week Price Return | -16.08% | 70.66% |
| 52-Week Price Return | -29.10% | 17.99% |
| Month-to-Date Return | 2.59% | 17.87% |
| Year-to-Date Return | -28.09% | 35.19% |
| 10-Day Avg. Volume | 6.46M | 4.69M |
| 3-Month Avg. Volume | 4.50M | 4.67M |
| 3-Month Volatility | 26.68% | 47.90% |
| Beta | 1.27 | 2.59 |
Profitability
Return on Equity (TTM)
ACN
25.56%
IT Services Industry
- Max
- 32.78%
- Q3
- 19.28%
- Median
- 13.86%
- Q1
- 5.50%
- Min
- -10.00%
In the upper quartile for the IT Services industry, ACN’s Return on Equity of 25.56% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
ARM
10.64%
Semiconductors & Semiconductor Equipment Industry
- Max
- 47.13%
- Q3
- 23.50%
- Median
- 9.94%
- Q1
- 0.86%
- Min
- -20.69%
ARM’s Return on Equity of 10.64% is on par with the norm for the Semiconductors & Semiconductor Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
ACN
11.02%
IT Services Industry
- Max
- 19.71%
- Q3
- 11.01%
- Median
- 6.66%
- Q1
- 2.96%
- Min
- -6.22%
A Net Profit Margin of 11.02% places ACN in the upper quartile for the IT Services industry, signifying strong profitability and more effective cost management than most of its peers.
ARM
16.96%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.41%
- Q3
- 23.88%
- Median
- 10.17%
- Q1
- 1.21%
- Min
- -32.15%
ARM’s Net Profit Margin of 16.96% is aligned with the median group of its peers in the Semiconductors & Semiconductor Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
ACN
14.68%
IT Services Industry
- Max
- 22.44%
- Q3
- 14.90%
- Median
- 8.82%
- Q1
- 4.91%
- Min
- -9.89%
ACN’s Operating Profit Margin of 14.68% is around the midpoint for the IT Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
ARM
18.51%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.09%
- Q3
- 27.54%
- Median
- 11.18%
- Q1
- 3.31%
- Min
- -28.36%
ARM’s Operating Profit Margin of 18.51% is around the midpoint for the Semiconductors & Semiconductor Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ACN | ARM |
|---|---|---|
| Return on Equity (TTM) | 25.56% | 10.64% |
| Return on Assets (TTM) | 12.36% | 8.01% |
| Net Profit Margin (TTM) | 11.02% | 16.96% |
| Operating Profit Margin (TTM) | 14.68% | 18.51% |
| Gross Profit Margin (TTM) | 31.91% | 97.14% |
Financial Strength
Current Ratio (MRQ)
ACN
1.42
IT Services Industry
- Max
- 3.17
- Q3
- 2.00
- Median
- 1.47
- Q1
- 1.05
- Min
- 0.52
ACN’s Current Ratio of 1.42 aligns with the median group of the IT Services industry, indicating that its short-term liquidity is in line with its sector peers.
ARM
4.99
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.58
- Q3
- 4.24
- Median
- 2.73
- Q1
- 2.13
- Min
- 1.02
ARM’s Current Ratio of 4.99 is in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio (MRQ)
ACN
0.17
IT Services Industry
- Max
- 3.11
- Q3
- 1.55
- Median
- 0.55
- Q1
- 0.17
- Min
- 0.00
ACN’s Debt-to-Equity Ratio of 0.17 is typical for the IT Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
ARM
0.00
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.09
- Q3
- 0.48
- Median
- 0.25
- Q1
- 0.01
- Min
- 0.00
Falling into the lower quartile for the Semiconductors & Semiconductor Equipment industry, ARM’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
ACN
4,205.92
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 0.77
- Min
- -28.15
With an Interest Coverage Ratio of 4,205.92, ACN demonstrates a superior capacity to service its debt, placing it well above the typical range for the IT Services industry. This stems from either robust earnings or a conservative debt load.
ARM
6.95
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 74.71
- Median
- 26.06
- Q1
- 6.43
- Min
- -7.80
ARM’s Interest Coverage Ratio of 6.95 is positioned comfortably within the norm for the Semiconductors & Semiconductor Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ACN | ARM |
|---|---|---|
| Current Ratio (MRQ) | 1.42 | 4.99 |
| Quick Ratio (MRQ) | 1.42 | 4.77 |
| Debt-to-Equity Ratio (MRQ) | 0.17 | 0.00 |
| Interest Coverage Ratio (TTM) | 4,205.92 | 6.95 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
ACN
2.38%
IT Services Industry
- Max
- 2.79%
- Q3
- 1.76%
- Median
- 0.58%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.38%, ACN offers a more attractive income stream than most of its peers in the IT Services industry, signaling a strong commitment to shareholder returns.
ARM
0.00%
Semiconductors & Semiconductor Equipment Industry
- Max
- 3.72%
- Q3
- 1.51%
- Median
- 0.69%
- Q1
- 0.00%
- Min
- 0.00%
ARM currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio (TTM)
ACN
48.19%
IT Services Industry
- Max
- 107.85%
- Q3
- 52.62%
- Median
- 22.53%
- Q1
- 0.00%
- Min
- 0.00%
ACN’s Dividend Payout Ratio of 48.19% is within the typical range for the IT Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
ARM
0.00%
Semiconductors & Semiconductor Equipment Industry
- Max
- 205.27%
- Q3
- 88.01%
- Median
- 27.13%
- Q1
- 0.00%
- Min
- 0.00%
ARM has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | ACN | ARM |
|---|---|---|
| Dividend Yield (TTM) | 2.38% | 0.00% |
| Dividend Payout Ratio (TTM) | 48.19% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
ACN
20.27
IT Services Industry
- Max
- 56.41
- Q3
- 33.17
- Median
- 23.17
- Q1
- 16.18
- Min
- 6.62
ACN’s P/E Ratio of 20.27 is within the middle range for the IT Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
ARM
241.41
Semiconductors & Semiconductor Equipment Industry
- Max
- 106.30
- Q3
- 61.93
- Median
- 38.96
- Q1
- 23.71
- Min
- 13.06
At 241.41, ARM’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors & Semiconductor Equipment industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Price-to-Sales Ratio (TTM)
ACN
2.23
IT Services Industry
- Max
- 5.99
- Q3
- 4.26
- Median
- 1.93
- Q1
- 0.97
- Min
- 0.12
ACN’s P/S Ratio of 2.23 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
ARM
40.95
Semiconductors & Semiconductor Equipment Industry
- Max
- 19.99
- Q3
- 10.21
- Median
- 5.23
- Q1
- 2.88
- Min
- 1.13
With a P/S Ratio of 40.95, ARM trades at a valuation that eclipses even the highest in the Semiconductors & Semiconductor Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
ACN
5.19
IT Services Industry
- Max
- 12.34
- Q3
- 7.54
- Median
- 3.84
- Q1
- 2.52
- Min
- 0.88
ACN’s P/B Ratio of 5.19 is within the conventional range for the IT Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
ARM
24.45
Semiconductors & Semiconductor Equipment Industry
- Max
- 14.22
- Q3
- 6.94
- Median
- 4.29
- Q1
- 1.99
- Min
- 0.67
At 24.45, ARM’s P/B Ratio is at an extreme premium to the Semiconductors & Semiconductor Equipment industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | ACN | ARM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 20.27 | 241.41 |
| Price-to-Sales Ratio (TTM) | 2.23 | 40.95 |
| Price-to-Book Ratio (MRQ) | 5.19 | 24.45 |
| Price-to-Free Cash Flow Ratio (TTM) | 14.31 | 237.34 |