ARM vs. CSCO: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARM and CSCO, 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
CSCO stands out with 251.43 billion USD in market value—about 1.82× ARM’s market cap of 137.89 billion USD.
ARM’s beta of 4.41 points to much larger expected swings compared to CSCO’s calmer 0.89, suggesting both higher upside and downside potential.
ARM trades as an ADR, giving U.S. investors a simple on-ramp to its foreign shares, while CSCO remains a standard domestic listing.
| Symbol | ARM | CSCO |
|---|---|---|
| Company Name | Arm Holdings plc American Depositary Shares | Cisco Systems, Inc. |
| Country | GB | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Communication Equipment |
| CEO | Mr. Rene Anthony Andrada Haas | Mr. Charles H. Robbins |
| Price | 130.45 USD | 63.2 USD |
| Market Cap | 137.89 billion USD | 251.43 billion USD |
| Beta | 4.41 | 0.89 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | September 14, 2023 | February 16, 1990 |
| ADR | Yes | No |
Performance Comparison
This chart compares the performance of ARM and CSCO 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 CSCO 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 CSCO at 25.69 remains within a more conventional earnings multiple.
| Symbol | ARM | CSCO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 170.26 | 25.69 |
| Forward PEG Ratio (TTM) | 6.09 | 3.65 |
| Price-to-Sales Ratio (P/S, TTM) | 37.33 | 4.52 |
| Price-to-Book Ratio (P/B, TTM) | 21.38 | 5.48 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 220.26 | 18.64 |
| EV-to-EBITDA (TTM) | 221.33 | 25.92 |
| EV-to-Sales (TTM) | 36.85 | 4.90 |
| EV-to-Free Cash Flow (TTM) | 217.45 | 20.20 |
Dividend Comparison
ARM offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while CSCO provides a 2.55% dividend yield, giving investors a steady income stream.
| Symbol | ARM | CSCO |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.55% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ARM and CSCO, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- CSCO’s current ratio of 0.95 indicates its assets may not cover near-term debts, whereas ARM at 4.96 maintains healthy liquidity.
- ARM shows “--” (minimal interest expense), but CSCO is in the red with interest coverage -13.99, signaling a net operating loss.
| Symbol | ARM | CSCO |
|---|---|---|
| Current Ratio (TTM) | 4.96 | 0.95 |
| Quick Ratio (TTM) | 4.96 | 0.87 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 0.64 |
| Debt-to-Assets Ratio (TTM) | 0.03 | 0.24 |
| Interest Coverage Ratio (TTM) | -- | -13.99 |