ALAB vs. ARM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALAB and ARM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
ALAB 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 | ALAB | ARM |
|---|---|---|
| Company Name | Astera Labs, Inc. | Arm Holdings plc |
| Country | United States | United Kingdom |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Semiconductors & Semiconductor Equipment | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 29.77 billion USD | 145.94 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | March 20, 2024 | September 14, 2023 |
| Security Type | Common Stock | ADR |
Historical Performance
This chart compares the performance of ALAB 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 | ALAB | ARM |
|---|---|---|
| 5-Day Price Return | 1.81% | 2.81% |
| 13-Week Price Return | 84.68% | 6.57% |
| 26-Week Price Return | 93.72% | -10.74% |
| 52-Week Price Return | 337.73% | 6.21% |
| Month-to-Date Return | 27.37% | -2.54% |
| Year-to-Date Return | 31.48% | 11.69% |
| 10-Day Avg. Volume | 4.89M | 3.92M |
| 3-Month Avg. Volume | 4.93M | 4.94M |
| 3-Month Volatility | 92.25% | 46.77% |
| Beta | 2.56 | 2.73 |
Profitability
Return on Equity (TTM)
ALAB
9.94%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.74%
- Q3
- 23.49%
- Median
- 11.60%
- Q1
- 3.23%
- Min
- -20.69%
ALAB’s Return on Equity of 9.94% is on par with the norm for the Semiconductors & Semiconductor Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.
ARM
10.64%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.74%
- Q3
- 23.49%
- Median
- 11.60%
- Q1
- 3.23%
- 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)
ALAB
16.54%
Semiconductors & Semiconductor Equipment Industry
- Max
- 44.17%
- Q3
- 22.38%
- Median
- 11.95%
- Q1
- 3.21%
- Min
- -25.16%
ALAB’s Net Profit Margin of 16.54% 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.
ARM
16.96%
Semiconductors & Semiconductor Equipment Industry
- Max
- 44.17%
- Q3
- 22.38%
- Median
- 11.95%
- Q1
- 3.21%
- Min
- -25.16%
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)
ALAB
6.99%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.03%
- Q3
- 27.84%
- Median
- 12.45%
- Q1
- 5.15%
- Min
- -28.61%
ALAB’s Operating Profit Margin of 6.99% is around the midpoint for the Semiconductors & Semiconductor Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.
ARM
18.51%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.03%
- Q3
- 27.84%
- Median
- 12.45%
- Q1
- 5.15%
- Min
- -28.61%
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 | ALAB | ARM |
|---|---|---|
| Return on Equity (TTM) | 9.94% | 10.64% |
| Return on Assets (TTM) | 9.04% | 8.01% |
| Net Profit Margin (TTM) | 16.54% | 16.96% |
| Operating Profit Margin (TTM) | 6.99% | 18.51% |
| Gross Profit Margin (TTM) | 75.52% | 97.14% |
Financial Strength
Current Ratio (MRQ)
ALAB
11.10
Semiconductors & Semiconductor Equipment Industry
- Max
- 8.42
- Q3
- 4.70
- Median
- 2.75
- Q1
- 2.07
- Min
- 1.04
ALAB’s Current Ratio of 11.10 is exceptionally high, placing it well outside the typical range for the Semiconductors & Semiconductor Equipment industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
ARM
4.99
Semiconductors & Semiconductor Equipment Industry
- Max
- 8.42
- Q3
- 4.70
- Median
- 2.75
- Q1
- 2.07
- Min
- 1.04
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)
ALAB
0.00
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.09
- Q3
- 0.45
- Median
- 0.22
- Q1
- 0.01
- Min
- 0.00
Falling into the lower quartile for the Semiconductors & Semiconductor Equipment industry, ALAB’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.
ARM
0.00
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.09
- Q3
- 0.45
- Median
- 0.22
- 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)
ALAB
--
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.10
- Median
- 27.22
- Q1
- 7.28
- Min
- -4.26
Interest Coverage Ratio data for ALAB is currently unavailable.
ARM
6.95
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.10
- Median
- 27.22
- Q1
- 7.28
- Min
- -4.26
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, ARM’s Interest Coverage Ratio of 6.95 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | ALAB | ARM |
|---|---|---|
| Current Ratio (MRQ) | 11.10 | 4.99 |
| Quick Ratio (MRQ) | 10.24 | 4.77 |
| Debt-to-Equity Ratio (MRQ) | 0.00 | 0.00 |
| Interest Coverage Ratio (TTM) | -- | 6.95 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
ALAB
0.00%
Semiconductors & Semiconductor Equipment Industry
- Max
- 4.16%
- Q3
- 1.78%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
ALAB 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 & Semiconductor Equipment Industry
- Max
- 4.16%
- Q3
- 1.78%
- Median
- 0.74%
- 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)
ALAB
0.00%
Semiconductors & Semiconductor Equipment Industry
- Max
- 196.12%
- Q3
- 87.72%
- Median
- 26.57%
- Q1
- 0.00%
- Min
- 0.00%
ALAB 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 & Semiconductor Equipment Industry
- Max
- 196.12%
- Q3
- 87.72%
- Median
- 26.57%
- 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 | ALAB | ARM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
ALAB
286.19
Semiconductors & Semiconductor Equipment Industry
- Max
- 109.37
- Q3
- 57.11
- Median
- 28.95
- Q1
- 22.13
- Min
- 11.14
At 286.19, ALAB’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.
ARM
203.03
Semiconductors & Semiconductor Equipment Industry
- Max
- 109.37
- Q3
- 57.11
- Median
- 28.95
- Q1
- 22.13
- Min
- 11.14
At 203.03, 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)
ALAB
47.34
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.09
- Q3
- 10.10
- Median
- 4.82
- Q1
- 2.60
- Min
- 0.93
With a P/S Ratio of 47.34, ALAB 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.
ARM
34.44
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.09
- Q3
- 10.10
- Median
- 4.82
- Q1
- 2.60
- Min
- 0.93
With a P/S Ratio of 34.44, 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)
ALAB
13.13
Semiconductors & Semiconductor Equipment Industry
- Max
- 13.56
- Q3
- 6.75
- Median
- 3.68
- Q1
- 1.89
- Min
- 0.60
ALAB’s P/B Ratio of 13.13 is in the upper tier for the Semiconductors & Semiconductor Equipment industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
ARM
24.45
Semiconductors & Semiconductor Equipment Industry
- Max
- 13.56
- Q3
- 6.75
- Median
- 3.68
- Q1
- 1.89
- Min
- 0.60
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 | ALAB | ARM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 286.19 | 203.03 |
| Price-to-Sales Ratio (TTM) | 47.34 | 34.44 |
| Price-to-Book Ratio (MRQ) | 13.13 | 24.45 |
| Price-to-Free Cash Flow Ratio (TTM) | 136.25 | 199.60 |