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

Updated on July 7, 2025

Here’s a clear look at ADSK and ARM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

ARM’s market capitalization of 163.93 billion USD is significantly greater than ADSK’s 67.75 billion USD, highlighting its more substantial market valuation.

ARM carries a higher beta at 4.10, indicating it’s more sensitive to market moves, while ADSK (beta: 1.45) exhibits greater stability.

ARM is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ADSK, on the other hand, is a domestic entity.

Symbol	ADSK	ARM
Company Name	Autodesk, Inc.	Arm Holdings plc American Depositary Shares
Country	US	GB
Sector	Technology	Technology
Industry	Software - Application	Semiconductors
CEO	Andrew Anagnost	Rene Anthony Andrada Haas
Price	316.66 USD	155.09 USD
Market Cap	67.75 billion USD	163.93 billion USD
Beta	1.45	4.10
Exchange	NASDAQ	NASDAQ
IPO Date	June 28, 1985	September 14, 2023
ADR	No	Yes

Historical Performance

This chart compares the performance of ADSK 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.

ADSK vs. ARM: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ADSK

45.55%

Software - Application Industry

Max: 59.01%
Q3: 17.85%
Median: 4.73%
Q1: -10.56%
Min: -52.94%

In the upper quartile for the Software - Application industry, ADSK’s Return on Equity of 45.55% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ARM

12.71%

Semiconductors Industry

Max: 41.84%
Q3: 15.81%
Median: 6.31%
Q1: -5.54%
Min: -30.12%

ARM’s Return on Equity of 12.71% is on par with the norm for the Semiconductors industry, indicating its profitability relative to shareholder equity is typical for the sector.

ADSK vs. ARM: A comparison of their ROE against their respective Software - Application and Semiconductors industry benchmarks.

Return on Invested Capital

ADSK

16.53%

Software - Application Industry

Max: 35.07%
Q3: 9.72%
Median: 0.76%
Q1: -8.68%
Min: -34.12%

In the upper quartile for the Software - Application industry, ADSK’s Return on Invested Capital of 16.53% signifies a highly effective use of its capital to generate profits when compared to its peers.

ARM

11.37%

Semiconductors Industry

Max: 30.91%
Q3: 11.34%
Median: 4.08%
Q1: -2.17%
Min: -19.59%

In the upper quartile for the Semiconductors industry, ARM’s Return on Invested Capital of 11.37% signifies a highly effective use of its capital to generate profits when compared to its peers.

ADSK vs. ARM: A comparison of their ROIC against their respective Software - Application and Semiconductors industry benchmarks.

Net Profit Margin

ADSK

18.53%

Software - Application Industry

Max: 48.14%
Q3: 16.07%
Median: 1.83%
Q1: -9.60%
Min: -45.64%

A Net Profit Margin of 18.53% places ADSK in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.

ARM

19.77%

Semiconductors Industry

Max: 51.69%
Q3: 19.67%
Median: 8.56%
Q1: -5.44%
Min: -38.60%

A Net Profit Margin of 19.77% places ARM in the upper quartile for the Semiconductors industry, signifying strong profitability and more effective cost management than most of its peers.

ADSK vs. ARM: A comparison of their Net Profit Margin against their respective Software - Application and Semiconductors industry benchmarks.

Operating Profit Margin

ADSK

20.29%

Software - Application Industry

Max: 51.67%
Q3: 15.35%
Median: 1.79%
Q1: -12.42%
Min: -45.17%

An Operating Profit Margin of 20.29% places ADSK in the upper quartile for the Software - Application industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ARM

20.74%

Semiconductors Industry

Max: 58.03%
Q3: 22.12%
Median: 8.40%
Q1: -3.73%
Min: -36.14%

ARM’s Operating Profit Margin of 20.74% is around the midpoint for the Semiconductors industry, indicating that its efficiency in managing core business operations is typical for the sector.

ADSK vs. ARM: A comparison of their Operating Margin against their respective Software - Application and Semiconductors industry benchmarks.

Profitability at a Glance

Symbol	ADSK	ARM
Return on Equity (TTM)	45.55%	12.71%
Return on Assets (TTM)	11.11%	8.87%
Return on Invested Capital (TTM)	16.53%	11.37%
Net Profit Margin (TTM)	18.53%	19.77%
Operating Profit Margin (TTM)	20.29%	20.74%
Gross Profit Margin (TTM)	90.53%	95.83%

Financial Strength

Current Ratio

ADSK

0.65

Software - Application Industry

Max: 5.09
Q3: 2.84
Median: 1.70
Q1: 1.12
Min: 0.04

ADSK’s Current Ratio of 0.65 falls into the lower quartile for the Software - Application industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ARM

5.20

Semiconductors Industry

Max: 9.10
Q3: 5.23
Median: 3.09
Q1: 2.49
Min: 1.02

ARM’s Current Ratio of 5.20 aligns with the median group of the Semiconductors industry, indicating that its short-term liquidity is in line with its sector peers.

ADSK vs. ARM: A comparison of their Current Ratio against their respective Software - Application and Semiconductors industry benchmarks.

Debt-to-Equity Ratio

ADSK

0.90

Software - Application Industry

Max: 1.85
Q3: 0.77
Median: 0.18
Q1: 0.05
Min: 0.00

ADSK’s leverage is in the upper quartile of the Software - Application industry, with a Debt-to-Equity Ratio of 0.90. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

ARM

0.05

Semiconductors Industry

Max: 0.97
Q3: 0.46
Median: 0.21
Q1: 0.05
Min: 0.00

ARM’s Debt-to-Equity Ratio of 0.05 is typical for the Semiconductors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ADSK vs. ARM: A comparison of their D/E Ratio against their respective Software - Application and Semiconductors industry benchmarks.

Interest Coverage Ratio

ADSK

184.00

Software - Application Industry

Max: 39.23
Q3: 8.55
Median: 1.48
Q1: -14.59
Min: -39.97

With an Interest Coverage Ratio of 184.00, ADSK demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software - Application industry. This stems from either robust earnings or a conservative debt load.

ARM

Semiconductors Industry

Max: 36.25
Q3: 29.12
Median: 7.01
Q1: -1.22
Min: -18.18

Interest Coverage Ratio data for ARM is currently unavailable.

ADSK vs. ARM: A comparison of their Interest Coverage against their respective Software - Application and Semiconductors industry benchmarks.

Financial Strength at a Glance

Symbol	ADSK	ARM
Current Ratio (TTM)	0.65	5.20
Quick Ratio (TTM)	0.65	5.20
Debt-to-Equity Ratio (TTM)	0.90	0.05
Debt-to-Asset Ratio (TTM)	0.22	0.04
Net Debt-to-EBITDA Ratio (TTM)	0.35	-2.31
Interest Coverage Ratio (TTM)	184.00	--

Growth

The following charts compare key year-over-year (YoY) growth metrics for ADSK and ARM. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ADSK vs. ARM: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ADSK vs. ARM: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ADSK vs. ARM: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ADSK

0.00%

Software - Application Industry

Max: 3.66%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

ADSK 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.

ARM

0.00%

Semiconductors Industry

Max: 6.48%
Q3: 0.93%
Median: 0.00%
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.

ADSK vs. ARM: A comparison of their Dividend Yield against their respective Software - Application and Semiconductors industry benchmarks.

Dividend Payout Ratio

ADSK

0.00%

Software - Application Industry

Max: 81.09%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

ADSK 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.

ARM

0.00%

Semiconductors Industry

Max: 204.29%
Q3: 31.85%
Median: 0.00%
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.

ADSK vs. ARM: A comparison of their Payout Ratio against their respective Software - Application and Semiconductors industry benchmarks.

Dividend at a Glance

Symbol	ADSK	ARM
Dividend Yield (TTM)	0.00%	0.00%
Dividend Payout Ratio (TTM)	0.00%	0.00%

Valuation

Price-to-Earnings Ratio

ADSK

57.62

Software - Application Industry

Max: 194.31
Q3: 98.56
Median: 51.87
Q1: 22.76
Min: 1.02

ADSK’s P/E Ratio of 57.62 is within the middle range for the Software - Application 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

206.59

Semiconductors Industry

Max: 86.15
Q3: 47.38
Median: 27.87
Q1: 18.89
Min: 4.73

At 206.59, ARM’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ADSK vs. ARM: A comparison of their P/E Ratio against their respective Software - Application and Semiconductors industry benchmarks.

Forward P/E to Growth Ratio

ADSK

4.33

Software - Application Industry

Max: 15.44
Q3: 6.57
Median: 2.78
Q1: 0.55
Min: 0.00

ADSK’s Forward PEG Ratio of 4.33 is within the middle range of its peers in the Software - Application industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ARM

7.75

Semiconductors Industry

Max: 4.73
Q3: 2.80
Median: 1.11
Q1: 0.68
Min: 0.01

The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.

ADSK vs. ARM: A comparison of their Forward PEG Ratio against their respective Software - Application and Semiconductors industry benchmarks.

Price-to-Sales Ratio

ADSK

10.67

Software - Application Industry

Max: 23.49
Q3: 11.14
Median: 5.62
Q1: 2.84
Min: 0.33

ADSK’s P/S Ratio of 10.67 aligns with the market consensus for the Software - Application industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ARM

40.91

Semiconductors Industry

Max: 21.96
Q3: 10.21
Median: 4.45
Q1: 2.32
Min: 0.48

With a P/S Ratio of 40.91, ARM trades at a valuation that eclipses even the highest in the Semiconductors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ADSK vs. ARM: A comparison of their P/S Ratio against their respective Software - Application and Semiconductors industry benchmarks.

Price-to-Book Ratio

ADSK

25.89

Software - Application Industry

Max: 21.03
Q3: 10.49
Median: 6.36
Q1: 2.89
Min: 0.12

The P/B Ratio is often not a primary valuation metric for the Software - Application industry.

ARM

23.92

Semiconductors Industry

Max: 13.12
Q3: 6.49
Median: 3.31
Q1: 1.74
Min: 0.23

At 23.92, ARM’s P/B Ratio is at an extreme premium to the Semiconductors 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.

ADSK vs. ARM: A comparison of their P/B Ratio against their respective Software - Application and Semiconductors industry benchmarks.

Valuation at a Glance

Symbol	ADSK	ARM
Price-to-Earnings Ratio (P/E, TTM)	57.62	206.59
Forward PEG Ratio (TTM)	4.33	7.75
Price-to-Sales Ratio (P/S, TTM)	10.67	40.91
Price-to-Book Ratio (P/B, TTM)	25.89	23.92
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	42.18	1011.91
EV-to-EBITDA (TTM)	45.70	216.85
EV-to-Sales (TTM)	10.76	40.48