AMAT vs. ARM: Applied Materials vs. Arm Holdings Stock Comparison

Company Profile

Applied Materials (AMAT) and Arm Holdings (ARM) both belong to the Semiconductors & Semiconductor Equipment industry, though AMAT is classified under Semiconductor Materials & Equipment while ARM falls under Semiconductors.

Applied Materials (AMAT) has more than two decades of public-market history since March 17, 1980, whereas Arm Holdings (ARM) listed on September 14, 2023 and has a much shorter record to draw on.

Applied Materials (AMAT) trades as ordinary local shares, while Arm Holdings (ARM) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Applied Materials (AMAT) at 41.07% sits in the top ROE quartile, while Arm Holdings (ARM) at 11.35% is closer to the peer norm — stronger capital efficiency for AMAT.

Applied Materials (AMAT) at 30.05% retains a top-quartile share of revenue as profit, ahead of Arm Holdings (ARM) at 17.13%, which keeps about the industry-typical share.

Applied Materials (AMAT) at 33.74% operates in the top operating margin quartile, ahead of Arm Holdings (ARM) at 13.93%, which runs around its industry’s norm.

Profitability Metrics

Growth

Both Applied Materials (AMAT) at 4.39% and Arm Holdings (ARM) at 22.79% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Both Applied Materials (AMAT) at 0.58% and Arm Holdings (ARM) at 13.33% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Growth Metrics

Financial Strength

Applied Materials (AMAT) at 2.42 keeps current ratio within its industry’s typical mid-range, while Arm Holdings (ARM) at 6.35 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

Both Applied Materials (AMAT) at 0.29 and Arm Holdings (ARM) at 0.06 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

Financial Strength Metrics

Dividends

Arm Holdings (ARM) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Applied Materials (AMAT) reports a yield of 0.62%, ranking against industry peers normally.

Arm Holdings (ARM) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Applied Materials (AMAT) reports a payout of 16.48%, ranking against industry peers normally.

Dividend Metrics

Valuation

Applied Materials (AMAT) at 28.71 is near its industry’s usual P/E ratio, while Arm Holdings (ARM) at 200.71 sits above its peer range — an unusually expensive price for ARM’s trailing earnings.

Applied Materials (AMAT) at 8.56 prices around its industry’s typical P/S ratio, while Arm Holdings (ARM) at 34.20 clears its benchmark range — ARM looks notably rich on sales.

Both look rich against book: Applied Materials (AMAT) at 10.30 sits in the upper P/B ratio quartile, and Arm Holdings (ARM) at 20.56 prices even higher, above its industry range.

Valuation Metrics