ADSK vs. ARM: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ADSK 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
ARM stands out with 137.89 billion USD in market value—about 2.20× ADSK’s market cap of 62.67 billion USD.
ARM carries a higher beta at 4.41, indicating it’s more sensitive to market moves, while ADSK remains steadier at 1.47.
ARM is an ADR, letting U.S. buyers tap its non-U.S. business directly, unlike ADSK, which is purely domestic.
| Symbol | ADSK | ARM |
|---|---|---|
| Company Name | Autodesk, Inc. | Arm Holdings plc American Depositary Shares |
| Country | US | GB |
| Sector | Technology | Technology |
| Industry | Software - Application | Semiconductors |
| CEO | Dr. Andrew Anagnost Ph.D. | Mr. Rene Anthony Andrada Haas |
| Price | 292.93 USD | 130.45 USD |
| Market Cap | 62.67 billion USD | 137.89 billion USD |
| Beta | 1.47 | 4.41 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | June 28, 1985 | September 14, 2023 |
| ADR | No | Yes |
Performance Comparison
This chart compares the performance of ADSK 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 ADSK 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 ADSK at 56.64, which trades at a more standard valuation based on its current earnings.
| Symbol | ADSK | ARM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 56.64 | 170.26 |
| Forward PEG Ratio (TTM) | 4.08 | 6.09 |
| Price-to-Sales Ratio (P/S, TTM) | 10.22 | 37.33 |
| Price-to-Book Ratio (P/B, TTM) | 24.03 | 21.38 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 39.99 | 220.26 |
| EV-to-EBITDA (TTM) | 41.48 | 221.33 |
| EV-to-Sales (TTM) | 10.38 | 36.85 |
| EV-to-Free Cash Flow (TTM) | 40.61 | 217.45 |
Dividend Comparison
Neither ADSK nor ARM currently pays a dividend yield; this often indicates they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.
| Symbol | ADSK | ARM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ADSK and ARM, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- ADSK’s current ratio of 0.68 signals a possible liquidity squeeze, while ARM at 4.96 comfortably covers its short-term obligations.
- ADSK’s quick ratio of 0.68 suggests it may struggle to cover immediate liabilities without selling inventory or raising cash, whereas ARM at 4.96 maintains a comfortable buffer of liquid assets.
- Neither ADSK nor ARM records interest coverage (both “--”), indicating virtually no interest expense—usually a sign of negligible debt.
| Symbol | ADSK | ARM |
|---|---|---|
| Current Ratio (TTM) | 0.68 | 4.96 |
| Quick Ratio (TTM) | 0.68 | 4.96 |
| Debt-to-Equity Ratio (TTM) | 0.98 | 0.04 |
| Debt-to-Assets Ratio (TTM) | 0.24 | 0.03 |
| Interest Coverage Ratio (TTM) | -- | -- |