ARM vs. ASML: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARM and ASML, 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
ASML stands out with 289.86 billion USD in market value—about 2.10× ARM’s market cap of 137.89 billion USD.
ARM’s beta of 4.41 points to much larger expected swings compared to ASML’s calmer 1.22, suggesting both higher upside and downside potential.
ARM and ASML are both ADRs—easy access for U.S. investors to foreign shares without dealing with overseas exchanges.
| Symbol | ARM | ASML |
|---|---|---|
| Company Name | Arm Holdings plc American Depositary Shares | ASML Holding N.V. |
| Country | GB | NL |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| CEO | Mr. Rene Anthony Andrada Haas | Mr. Christophe D. Fouquet |
| Price | 130.45 USD | 737.17 USD |
| Market Cap | 137.89 billion USD | 289.86 billion USD |
| Beta | 4.41 | 1.22 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | September 14, 2023 | March 15, 1995 |
| ADR | Yes | Yes |
Performance Comparison
This chart compares the performance of ARM and ASML 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 ARM and ASML based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- ARM stands out with a premium P/E of 170.26, while ASML at 29.38 remains within a more conventional earnings multiple.
| Symbol | ARM | ASML |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 170.26 | 29.38 |
| Forward PEG Ratio (TTM) | 6.09 | 1.80 |
| Price-to-Sales Ratio (P/S, TTM) | 37.33 | 8.35 |
| Price-to-Book Ratio (P/B, TTM) | 21.38 | 14.61 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 220.26 | 27.61 |
| EV-to-EBITDA (TTM) | 221.33 | 21.83 |
| EV-to-Sales (TTM) | 36.85 | 8.17 |
| EV-to-Free Cash Flow (TTM) | 217.45 | 27.02 |
Dividend Comparison
ARM offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while ASML provides a 0.98% dividend yield, giving investors a steady income stream.
| Symbol | ARM | ASML |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.98% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ARM and ASML, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- Neither ARM nor ASML records interest coverage (both “--”), indicating virtually no interest expense—usually a sign of negligible debt.
| Symbol | ARM | ASML |
|---|---|---|
| Current Ratio (TTM) | 4.96 | 1.52 |
| Quick Ratio (TTM) | 4.96 | 0.91 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 0.21 |
| Debt-to-Assets Ratio (TTM) | 0.03 | 0.08 |
| Interest Coverage Ratio (TTM) | -- | -- |