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

Updated

Here’s a clear look at AMD 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

With AMD at 181.69 billion USD and ARM at 137.89 billion USD, their market capitalizations sit in the same ballpark.

ARM carries a higher beta at 4.41, indicating it’s more sensitive to market moves, while AMD remains steadier at 1.97.

ARM is an ADR, letting U.S. buyers tap its non-U.S. business directly, unlike AMD, which is purely domestic.

SymbolAMDARM
Company NameAdvanced Micro Devices, Inc.Arm Holdings plc American Depositary Shares
CountryUSGB
SectorTechnologyTechnology
IndustrySemiconductorsSemiconductors
CEODr. Lisa T. Su Ph.D.Mr. Rene Anthony Andrada Haas
Price112.06 USD130.45 USD
Market Cap181.69 billion USD137.89 billion USD
Beta1.974.41
ExchangeNASDAQNASDAQ
IPO DateMarch 17, 1980September 14, 2023
ADRNoYes

Performance Comparison

This chart compares the performance of AMD 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 AMD 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 AMD at 81.52, which trades at a more standard valuation based on its current earnings.
SymbolAMDARM
Price-to-Earnings Ratio (P/E, TTM)81.52170.26
Forward PEG Ratio (TTM)2.146.09
Price-to-Sales Ratio (P/S, TTM)6.5537.33
Price-to-Book Ratio (P/B, TTM)3.1421.38
Price-to-Free Cash Flow Ratio (P/FCF, TTM)66.00220.26
EV-to-EBITDA (TTM)30.34221.33
EV-to-Sales (TTM)6.5036.85
EV-to-Free Cash Flow (TTM)65.52217.45

Dividend Comparison

Neither AMD 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.

SymbolAMDARM
Dividend Yield (TTM)0.00%0.00%

Financial Strength Metrics Comparison

This section dives into the financial resilience of AMD and ARM, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • AMD (at 30.69) covers its interest payments, while ARM shows “--” for minimal debt service.
SymbolAMDARM
Current Ratio (TTM)2.804.96
Quick Ratio (TTM)1.974.96
Debt-to-Equity Ratio (TTM)0.080.04
Debt-to-Assets Ratio (TTM)0.070.03
Interest Coverage Ratio (TTM)30.69--