ANSS vs. ARM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ANSS 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 ANSS’s 32.31 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 ANSS (beta: 1.19) exhibits greater stability.
ARM is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ANSS, on the other hand, is a domestic entity.
| Symbol | ANSS | ARM |
|---|---|---|
| Company Name | ANSYS, Inc. | Arm Holdings plc American Depositary Shares |
| Country | US | GB |
| Sector | Technology | Technology |
| Industry | Software - Application | Semiconductors |
| CEO | Ajei S. Gopal | Rene Anthony Andrada Haas |
| Price | 367.48 USD | 155.09 USD |
| Market Cap | 32.31 billion USD | 163.93 billion USD |
| Beta | 1.19 | 4.10 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | June 20, 1996 | September 14, 2023 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of ANSS 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.
Profitability
Return on Equity
ANSS
10.01%
Software - Application Industry
- Max
- 59.01%
- Q3
- 17.85%
- Median
- 4.73%
- Q1
- -10.56%
- Min
- -52.94%
ANSS’s Return on Equity of 10.01% is on par with the norm for the Software - Application industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
Return on Invested Capital
ANSS
8.28%
Software - Application Industry
- Max
- 35.07%
- Q3
- 9.72%
- Median
- 0.76%
- Q1
- -8.68%
- Min
- -34.12%
ANSS’s Return on Invested Capital of 8.28% is in line with the norm for the Software - Application industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
Net Profit Margin
ANSS
22.95%
Software - Application Industry
- Max
- 48.14%
- Q3
- 16.07%
- Median
- 1.83%
- Q1
- -9.60%
- Min
- -45.64%
A Net Profit Margin of 22.95% places ANSS 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.
Operating Profit Margin
ANSS
28.87%
Software - Application Industry
- Max
- 51.67%
- Q3
- 15.35%
- Median
- 1.79%
- Q1
- -12.42%
- Min
- -45.17%
An Operating Profit Margin of 28.87% places ANSS 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.
Profitability at a Glance
| Symbol | ANSS | ARM |
|---|---|---|
| Return on Equity (TTM) | 10.01% | 12.71% |
| Return on Assets (TTM) | 7.43% | 8.87% |
| Return on Invested Capital (TTM) | 8.28% | 11.37% |
| Net Profit Margin (TTM) | 22.95% | 19.77% |
| Operating Profit Margin (TTM) | 28.87% | 20.74% |
| Gross Profit Margin (TTM) | 88.78% | 95.83% |
Financial Strength
Current Ratio
ANSS
3.66
Software - Application Industry
- Max
- 5.09
- Q3
- 2.84
- Median
- 1.70
- Q1
- 1.12
- Min
- 0.04
ANSS’s Current Ratio of 3.66 is in the upper quartile for the Software - Application industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
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.
Debt-to-Equity Ratio
ANSS
0.14
Software - Application Industry
- Max
- 1.85
- Q3
- 0.77
- Median
- 0.18
- Q1
- 0.05
- Min
- 0.00
ANSS’s Debt-to-Equity Ratio of 0.14 is typical for the Software - Application industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
Interest Coverage Ratio
ANSS
16.34
Software - Application Industry
- Max
- 39.23
- Q3
- 8.55
- Median
- 1.48
- Q1
- -14.59
- Min
- -39.97
ANSS’s Interest Coverage Ratio of 16.34 is in the upper quartile for the Software - Application industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
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.
Financial Strength at a Glance
| Symbol | ANSS | ARM |
|---|---|---|
| Current Ratio (TTM) | 3.66 | 5.20 |
| Quick Ratio (TTM) | 3.66 | 5.20 |
| Debt-to-Equity Ratio (TTM) | 0.14 | 0.05 |
| Debt-to-Asset Ratio (TTM) | 0.10 | 0.04 |
| Net Debt-to-EBITDA Ratio (TTM) | -1.00 | -2.31 |
| Interest Coverage Ratio (TTM) | 16.34 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ANSS and ARM. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ANSS
0.00%
Software - Application Industry
- Max
- 3.66%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ANSS 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.
Dividend Payout Ratio
ANSS
0.00%
Software - Application Industry
- Max
- 81.09%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ANSS 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.
Dividend at a Glance
| Symbol | ANSS | ARM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio
ANSS
54.22
Software - Application Industry
- Max
- 194.31
- Q3
- 98.56
- Median
- 51.87
- Q1
- 22.76
- Min
- 1.02
ANSS’s P/E Ratio of 54.22 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.
Forward P/E to Growth Ratio
ANSS
6.92
Software - Application Industry
- Max
- 15.44
- Q3
- 6.57
- Median
- 2.78
- Q1
- 0.55
- Min
- 0.00
A Forward PEG Ratio of 6.92 places ANSS in the upper quartile for the Software - Application industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
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.
Price-to-Sales Ratio
ANSS
12.51
Software - Application Industry
- Max
- 23.49
- Q3
- 11.14
- Median
- 5.62
- Q1
- 2.84
- Min
- 0.33
ANSS’s P/S Ratio of 12.51 is in the upper echelon for the Software - Application industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
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.
Price-to-Book Ratio
ANSS
5.20
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.
Valuation at a Glance
| Symbol | ANSS | ARM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 54.22 | 206.59 |
| Forward PEG Ratio (TTM) | 6.92 | 7.75 |
| Price-to-Sales Ratio (P/S, TTM) | 12.51 | 40.91 |
| Price-to-Book Ratio (P/B, TTM) | 5.20 | 23.92 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 37.27 | 1011.91 |
| EV-to-EBITDA (TTM) | 33.89 | 216.85 |
| EV-to-Sales (TTM) | 12.15 | 40.48 |