ADI vs. ARM: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ADI 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 ADI at 110.22 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 ADI remains steadier at 0.98.
ARM is an ADR, letting U.S. buyers tap its non-U.S. business directly, unlike ADI, which is purely domestic.
| Symbol | ADI | ARM |
|---|---|---|
| Company Name | Analog Devices, Inc. | Arm Holdings plc American Depositary Shares |
| Country | US | GB |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| CEO | Mr. Vincent T. Roche | Mr. Rene Anthony Andrada Haas |
| Price | 222.22 USD | 130.45 USD |
| Market Cap | 110.22 billion USD | 137.89 billion USD |
| Beta | 0.98 | 4.41 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | March 17, 1980 | September 14, 2023 |
| ADR | No | Yes |
Performance Comparison
This chart compares the performance of ADI 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 ADI 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 ADI at 70.50, which trades at a more standard valuation based on its current earnings.
| Symbol | ADI | ARM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 70.50 | 170.26 |
| Forward PEG Ratio (TTM) | 3.93 | 6.09 |
| Price-to-Sales Ratio (P/S, TTM) | 11.80 | 37.33 |
| Price-to-Book Ratio (P/B, TTM) | 3.14 | 21.38 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 34.62 | 220.26 |
| EV-to-EBITDA (TTM) | 28.11 | 221.33 |
| EV-to-Sales (TTM) | 12.36 | 36.85 |
| EV-to-Free Cash Flow (TTM) | 36.25 | 217.45 |
Dividend Comparison
ADI delivers a 1.69% dividend yield, blending income with growth, whereas ARM appears to retain its profits, possibly to fund operations, R&D, or other growth initiatives.
| Symbol | ADI | ARM |
|---|---|---|
| Dividend Yield (TTM) | 1.69% | 0.00% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ADI and ARM, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- ADI (at 6.09) covers its interest payments, while ARM shows “--” for minimal debt service.
| Symbol | ADI | ARM |
|---|---|---|
| Current Ratio (TTM) | 1.93 | 4.96 |
| Quick Ratio (TTM) | 1.43 | 4.96 |
| Debt-to-Equity Ratio (TTM) | 0.22 | 0.04 |
| Debt-to-Assets Ratio (TTM) | 0.16 | 0.03 |
| Interest Coverage Ratio (TTM) | 6.09 | -- |