APP vs. ARM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at APP and ARM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
APP 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 | APP | ARM |
|---|---|---|
| Company Name | AppLovin Corporation | Arm Holdings plc |
| Country | United States | United Kingdom |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Software | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 184.85 billion USD | 151.29 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | April 15, 2021 | September 14, 2023 |
| Security Type | Common Stock | ADR |
Historical Performance
This chart compares the performance of APP 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 | APP | ARM |
|---|---|---|
| 5-Day Price Return | -14.37% | -9.73% |
| 13-Week Price Return | 27.13% | 0.62% |
| 26-Week Price Return | 50.69% | 10.33% |
| 52-Week Price Return | 96.40% | 3.46% |
| Month-to-Date Return | -12.49% | -17.70% |
| Year-to-Date Return | 72.22% | 13.30% |
| 10-Day Avg. Volume | 5.40M | 4.62M |
| 3-Month Avg. Volume | 6.66M | 4.93M |
| 3-Month Volatility | 61.28% | 52.77% |
| Beta | 2.57 | 2.60 |
Profitability
Return on Equity (TTM)
APP
262.94%
Software Industry
- Max
- 65.88%
- Q3
- 22.54%
- Median
- 10.46%
- Q1
- -6.54%
- Min
- -41.05%
APP’s Return on Equity of 262.94% is exceptionally high, placing it well beyond the typical range for the Software industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
ARM
12.00%
Semiconductors & Semiconductor Equipment Industry
- Max
- 49.05%
- Q3
- 22.19%
- Median
- 7.96%
- Q1
- 0.99%
- Min
- -15.65%
ARM’s Return on Equity of 12.00% 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)
APP
51.28%
Software Industry
- Max
- 53.50%
- Q3
- 20.30%
- Median
- 9.60%
- Q1
- -4.98%
- Min
- -41.00%
A Net Profit Margin of 51.28% places APP in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
ARM
18.81%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.41%
- Q3
- 24.47%
- Median
- 11.88%
- Q1
- 0.60%
- Min
- -25.46%
ARM’s Net Profit Margin of 18.81% 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)
APP
59.92%
Software Industry
- Max
- 61.99%
- Q3
- 23.67%
- Median
- 10.93%
- Q1
- -3.57%
- Min
- -40.19%
An Operating Profit Margin of 59.92% places APP in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
ARM
19.54%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.09%
- Q3
- 27.76%
- Median
- 12.14%
- Q1
- 3.29%
- Min
- -32.60%
ARM’s Operating Profit Margin of 19.54% 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 | APP | ARM |
|---|---|---|
| Return on Equity (TTM) | 262.94% | 12.00% |
| Return on Assets (TTM) | 47.42% | 9.09% |
| Net Profit Margin (TTM) | 51.28% | 18.81% |
| Operating Profit Margin (TTM) | 59.92% | 19.54% |
| Gross Profit Margin (TTM) | 83.31% | 97.39% |
Financial Strength
Current Ratio (MRQ)
APP
3.25
Software Industry
- Max
- 4.01
- Q3
- 2.27
- Median
- 1.50
- Q1
- 1.03
- Min
- 0.25
APP’s Current Ratio of 3.25 is in the upper quartile for the Software industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
ARM
5.59
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.57
- Q3
- 4.28
- Median
- 2.86
- Q1
- 2.22
- Min
- 1.02
ARM’s Current Ratio of 5.59 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)
APP
2.38
Software Industry
- Max
- 2.04
- Q3
- 0.86
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
With a Debt-to-Equity Ratio of 2.38, APP operates with exceptionally high leverage compared to the Software industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
ARM
0.00
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.18
- Q3
- 0.48
- Median
- 0.24
- 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)
APP
6.44
Software Industry
- Max
- 89.65
- Q3
- 33.82
- Median
- 1.59
- Q1
- -10.48
- Min
- -71.23
APP’s Interest Coverage Ratio of 6.44 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.
ARM
6.95
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.21
- Median
- 22.37
- Q1
- 6.43
- Min
- -7.80
ARM’s Interest Coverage Ratio of 6.95 is positioned comfortably within the norm for the Semiconductors & Semiconductor Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | APP | ARM |
|---|---|---|
| Current Ratio (MRQ) | 3.25 | 5.59 |
| Quick Ratio (MRQ) | 3.05 | 5.34 |
| Debt-to-Equity Ratio (MRQ) | 2.38 | 0.00 |
| Interest Coverage Ratio (TTM) | 6.44 | 6.95 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
APP
0.00%
Software Industry
- Max
- 0.34%
- Q3
- 0.17%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP 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
- 3.58%
- Q3
- 1.59%
- Median
- 0.61%
- 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)
APP
0.00%
Software Industry
- Max
- 12.76%
- Q3
- 6.56%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP 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
- 211.90%
- Q3
- 88.01%
- Median
- 25.84%
- 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 | APP | ARM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
APP
64.38
Software Industry
- Max
- 142.78
- Q3
- 72.24
- Median
- 36.21
- Q1
- 24.24
- Min
- 4.55
APP’s P/E Ratio of 64.38 is within the middle range for the Software 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
178.67
Semiconductors & Semiconductor Equipment Industry
- Max
- 95.58
- Q3
- 58.67
- Median
- 34.77
- Q1
- 25.45
- Min
- 12.63
At 178.67, 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)
APP
33.01
Software Industry
- Max
- 20.79
- Q3
- 12.71
- Median
- 6.75
- Q1
- 4.56
- Min
- 0.87
With a P/S Ratio of 33.01, APP trades at a valuation that eclipses even the highest in the Software industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
ARM
33.61
Semiconductors & Semiconductor Equipment Industry
- Max
- 18.34
- Q3
- 10.38
- Median
- 5.38
- Q1
- 2.49
- Min
- 0.32
With a P/S Ratio of 33.61, 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)
APP
164.90
Software Industry
- Max
- 30.49
- Q3
- 14.84
- Median
- 8.09
- Q1
- 4.32
- Min
- 0.38
At 164.90, APP’s P/B Ratio is at an extreme premium to the Software 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.
ARM
20.23
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.22
- Q3
- 8.33
- Median
- 4.39
- Q1
- 1.79
- Min
- 0.30
At 20.23, 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 | APP | ARM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 64.38 | 178.67 |
| Price-to-Sales Ratio (TTM) | 33.01 | 33.61 |
| Price-to-Book Ratio (MRQ) | 164.90 | 20.23 |
| Price-to-Free Cash Flow Ratio (TTM) | 53.63 | 130.31 |