ARM vs. ASML: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARM and ASML, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
Both ARM and ASML offer U.S. investors access to foreign companies, with ARM trading as an American Depositary Receipt (ADR) and ASML as New York Registered Shares.
| Symbol | ARM | ASML |
|---|---|---|
| Company Name | Arm Holdings plc | ASML Holding N.V. |
| Country | United Kingdom | Netherlands |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Semiconductors & Semiconductor Equipment | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 138.93 billion USD | 296.82 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | September 14, 2023 | March 15, 1995 |
| Security Type | ADR | NY Reg Shrs |
Historical Performance
This chart compares the performance of ARM and ASML 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 | ARM | ASML |
|---|---|---|
| 5-Day Price Return | -5.36% | 1.17% |
| 13-Week Price Return | -1.43% | -1.19% |
| 26-Week Price Return | -13.77% | -9.94% |
| 52-Week Price Return | 2.85% | -19.16% |
| Month-to-Date Return | -5.21% | 5.40% |
| Year-to-Date Return | 8.63% | -4.79% |
| 10-Day Avg. Volume | 4.00M | 0.41M |
| 3-Month Avg. Volume | 5.00M | 0.66M |
| 3-Month Volatility | 46.58% | 34.94% |
| Beta | 2.73 | 1.69 |
Profitability
Return on Equity (TTM)
ARM
10.64%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.74%
- Q3
- 23.49%
- Median
- 11.60%
- Q1
- 3.23%
- Min
- -20.69%
ARM’s Return on Equity of 10.64% is on par with the norm for the Semiconductors & Semiconductor Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.
ASML
47.13%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.74%
- Q3
- 23.49%
- Median
- 11.60%
- Q1
- 3.23%
- Min
- -20.69%
In the upper quartile for the Semiconductors & Semiconductor Equipment industry, ASML’s Return on Equity of 47.13% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
ARM
16.96%
Semiconductors & Semiconductor Equipment Industry
- Max
- 44.17%
- Q3
- 22.38%
- Median
- 11.95%
- Q1
- 3.21%
- Min
- -25.16%
ARM’s Net Profit Margin of 16.96% 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.
ASML
29.31%
Semiconductors & Semiconductor Equipment Industry
- Max
- 44.17%
- Q3
- 22.38%
- Median
- 11.95%
- Q1
- 3.21%
- Min
- -25.16%
A Net Profit Margin of 29.31% places ASML in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
ARM
18.51%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.03%
- Q3
- 27.84%
- Median
- 12.45%
- Q1
- 5.15%
- Min
- -28.61%
ARM’s Operating Profit Margin of 18.51% is around the midpoint for the Semiconductors & Semiconductor Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.
ASML
34.90%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.03%
- Q3
- 27.84%
- Median
- 12.45%
- Q1
- 5.15%
- Min
- -28.61%
An Operating Profit Margin of 34.90% places ASML in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ARM | ASML |
|---|---|---|
| Return on Equity (TTM) | 10.64% | 47.13% |
| Return on Assets (TTM) | 8.01% | 19.27% |
| Net Profit Margin (TTM) | 16.96% | 29.31% |
| Operating Profit Margin (TTM) | 18.51% | 34.90% |
| Gross Profit Margin (TTM) | 97.14% | 52.58% |
Financial Strength
Current Ratio (MRQ)
ARM
4.99
Semiconductors & Semiconductor Equipment Industry
- Max
- 8.42
- Q3
- 4.70
- Median
- 2.75
- Q1
- 2.07
- Min
- 1.04
ARM’s Current Ratio of 4.99 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.
ASML
1.41
Semiconductors & Semiconductor Equipment Industry
- Max
- 8.42
- Q3
- 4.70
- Median
- 2.75
- Q1
- 2.07
- Min
- 1.04
ASML’s Current Ratio of 1.41 falls into the lower quartile for the Semiconductors & Semiconductor Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
ARM
0.00
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.09
- Q3
- 0.45
- Median
- 0.22
- 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.
ASML
0.22
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.09
- Q3
- 0.45
- Median
- 0.22
- Q1
- 0.01
- Min
- 0.00
ASML’s Debt-to-Equity Ratio of 0.22 is typical for the Semiconductors & Semiconductor Equipment 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 (TTM)
ARM
6.95
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.10
- Median
- 27.22
- Q1
- 7.28
- Min
- -4.26
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, ARM’s Interest Coverage Ratio of 6.95 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
ASML
164.15
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.10
- Median
- 27.22
- Q1
- 7.28
- Min
- -4.26
ASML’s Interest Coverage Ratio of 164.15 is in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ARM | ASML |
|---|---|---|
| Current Ratio (MRQ) | 4.99 | 1.41 |
| Quick Ratio (MRQ) | 4.77 | 0.79 |
| Debt-to-Equity Ratio (MRQ) | 0.00 | 0.22 |
| Interest Coverage Ratio (TTM) | 6.95 | 164.15 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
ARM
0.00%
Semiconductors & Semiconductor Equipment Industry
- Max
- 4.16%
- Q3
- 1.78%
- Median
- 0.74%
- 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.
ASML
1.01%
Semiconductors & Semiconductor Equipment Industry
- Max
- 4.16%
- Q3
- 1.78%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
ASML’s Dividend Yield of 1.01% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
ARM
0.00%
Semiconductors & Semiconductor Equipment Industry
- Max
- 196.12%
- Q3
- 87.72%
- Median
- 26.57%
- 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.
ASML
26.57%
Semiconductors & Semiconductor Equipment Industry
- Max
- 196.12%
- Q3
- 87.72%
- Median
- 26.57%
- Q1
- 0.00%
- Min
- 0.00%
ASML’s Dividend Payout Ratio of 26.57% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ARM | ASML |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.01% |
| Dividend Payout Ratio (TTM) | 0.00% | 26.57% |
Valuation
Price-to-Earnings Ratio (TTM)
ARM
203.03
Semiconductors & Semiconductor Equipment Industry
- Max
- 109.37
- Q3
- 57.11
- Median
- 28.95
- Q1
- 22.13
- Min
- 11.14
At 203.03, 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.
ASML
26.41
Semiconductors & Semiconductor Equipment Industry
- Max
- 109.37
- Q3
- 57.11
- Median
- 28.95
- Q1
- 22.13
- Min
- 11.14
ASML’s P/E Ratio of 26.41 is within the middle range for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
ARM
34.44
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.09
- Q3
- 10.10
- Median
- 4.82
- Q1
- 2.60
- Min
- 0.93
With a P/S Ratio of 34.44, 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.
ASML
7.74
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.09
- Q3
- 10.10
- Median
- 4.82
- Q1
- 2.60
- Min
- 0.93
ASML’s P/S Ratio of 7.74 aligns with the market consensus for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
ARM
24.45
Semiconductors & Semiconductor Equipment Industry
- Max
- 13.56
- Q3
- 6.75
- Median
- 3.68
- Q1
- 1.89
- Min
- 0.60
At 24.45, 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.
ASML
12.39
Semiconductors & Semiconductor Equipment Industry
- Max
- 13.56
- Q3
- 6.75
- Median
- 3.68
- Q1
- 1.89
- Min
- 0.60
ASML’s P/B Ratio of 12.39 is in the upper tier for the Semiconductors & Semiconductor Equipment industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | ARM | ASML |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 203.03 | 26.41 |
| Price-to-Sales Ratio (TTM) | 34.44 | 7.74 |
| Price-to-Book Ratio (MRQ) | 24.45 | 12.39 |
| Price-to-Free Cash Flow Ratio (TTM) | 199.60 | 26.67 |