ALAB vs. ARM: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ALAB 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 9.07× ALAB’s market cap of 15.20 billion USD.
ARM carries a higher beta at 4.41, indicating it’s more sensitive to market moves, while ALAB remains steadier at 0.33.
ARM is an ADR, letting U.S. buyers tap its non-U.S. business directly, unlike ALAB, which is purely domestic.
| Symbol | ALAB | ARM |
|---|---|---|
| Company Name | Astera Labs, Inc. Common Stock | Arm Holdings plc American Depositary Shares |
| Country | US | GB |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| CEO | Mr. Jitendra Mohan | Mr. Rene Anthony Andrada Haas |
| Price | 92.17 USD | 130.45 USD |
| Market Cap | 15.20 billion USD | 137.89 billion USD |
| Beta | 0.33 | 4.41 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | March 20, 2024 | September 14, 2023 |
| ADR | No | Yes |
Performance Comparison
This chart compares the performance of ALAB 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 ALAB and ARM based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- ALAB and ARM both trade above a 100× earnings multiple (363.38 and 170.26), reflecting lofty growth narratives priced into their shares.
| Symbol | ALAB | ARM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 363.38 | 170.26 |
| Forward PEG Ratio (TTM) | 10.90 | 6.09 |
| Price-to-Sales Ratio (P/S, TTM) | 30.99 | 37.33 |
| Price-to-Book Ratio (P/B, TTM) | 14.44 | 21.38 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 140.53 | 220.26 |
| EV-to-EBITDA (TTM) | -832.77 | 221.33 |
| EV-to-Sales (TTM) | 30.81 | 36.85 |
| EV-to-Free Cash Flow (TTM) | 139.73 | 217.45 |
Dividend Comparison
Neither ALAB 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 | ALAB | ARM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ALAB and ARM, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- Neither ALAB nor ARM records interest coverage (both “--”), indicating virtually no interest expense—usually a sign of negligible debt.
| Symbol | ALAB | ARM |
|---|---|---|
| Current Ratio (TTM) | 13.92 | 4.96 |
| Quick Ratio (TTM) | 13.26 | 4.96 |
| Debt-to-Equity Ratio (TTM) | 0.00 | 0.04 |
| Debt-to-Assets Ratio (TTM) | 0.00 | 0.03 |
| Interest Coverage Ratio (TTM) | -- | -- |