ARM vs. CTSH: A Head-to-Head Stock Comparison

Updated on August 23, 2025

Here’s a clear look at ARM and CTSH, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

ARM trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, CTSH is a standard domestic listing.

Symbol	ARM	CTSH
Company Name	Arm Holdings plc	Cognizant Technology Solutions Corporation
Country	United Kingdom	United States
GICS Sector	Information Technology	Information Technology
GICS Industry	Semiconductors & Semiconductor Equipment	IT Services
Market Capitalization	138.93 billion USD	34.43 billion USD
Exchange	NasdaqGS	NasdaqGS
Listing Date	September 14, 2023	June 19, 1998
Security Type	ADR	Common Stock

Historical Performance

This chart compares the performance of ARM and CTSH 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.

ARM vs. CTSH: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	ARM	CTSH
5-Day Price Return	-5.36%	1.61%
13-Week Price Return	-1.43%	-13.58%
26-Week Price Return	-13.77%	-21.31%
52-Week Price Return	2.85%	-7.24%
Month-to-Date Return	-5.21%	-1.77%
Year-to-Date Return	8.63%	-8.34%
10-Day Avg. Volume	4.00M	4.07M
3-Month Avg. Volume	5.00M	3.71M
3-Month Volatility	46.58%	21.70%
Beta	2.73	0.97

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.

CTSH

16.50%

IT Services Industry

Max: 29.51%
Q3: 16.98%
Median: 13.47%
Q1: 7.93%
Min: -3.97%

CTSH’s Return on Equity of 16.50% is on par with the norm for the IT Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

ARM vs. CTSH: A comparison of their Return on Equity (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

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.

CTSH

11.89%

IT Services Industry

Max: 19.82%
Q3: 11.49%
Median: 6.67%
Q1: 3.61%
Min: -4.62%

A Net Profit Margin of 11.89% places CTSH in the upper quartile for the IT Services industry, signifying strong profitability and more effective cost management than most of its peers.

ARM vs. CTSH: A comparison of their Net Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

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.

CTSH

15.42%

IT Services Industry

Max: 21.69%
Q3: 14.50%
Median: 10.06%
Q1: 6.98%
Min: 0.06%

An Operating Profit Margin of 15.42% places CTSH in the upper quartile for the IT Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ARM vs. CTSH: A comparison of their Operating Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Profitability at a Glance

Symbol	ARM	CTSH
Return on Equity (TTM)	10.64%	16.50%
Return on Assets (TTM)	8.01%	12.14%
Net Profit Margin (TTM)	16.96%	11.89%
Operating Profit Margin (TTM)	18.51%	15.42%
Gross Profit Margin (TTM)	97.14%	34.18%

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.

CTSH

2.41

IT Services Industry

Max: 2.42
Q3: 1.81
Median: 1.47
Q1: 1.09
Min: 0.44

CTSH’s Current Ratio of 2.41 is in the upper quartile for the IT Services industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

ARM vs. CTSH: A comparison of their Current Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

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.

CTSH

0.04

IT Services Industry

Max: 2.33
Q3: 1.17
Median: 0.54
Q1: 0.15
Min: 0.00

Falling into the lower quartile for the IT Services industry, CTSH’s Debt-to-Equity Ratio of 0.04 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ARM vs. CTSH: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

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.

CTSH

100.81

IT Services Industry

Max: 144.50
Q3: 84.49
Median: 13.76
Q1: 2.59
Min: -28.13

CTSH’s Interest Coverage Ratio of 100.81 is in the upper quartile for the IT Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ARM vs. CTSH: A comparison of their Interest Coverage Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Financial Strength at a Glance

Symbol	ARM	CTSH
Current Ratio (MRQ)	4.99	2.41
Quick Ratio (MRQ)	4.77	2.41
Debt-to-Equity Ratio (MRQ)	0.00	0.04
Interest Coverage Ratio (TTM)	6.95	100.81

Growth

Revenue Growth

ARM vs. CTSH: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ARM vs. CTSH: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

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.

CTSH

1.75%

IT Services Industry

Max: 2.80%
Q3: 1.74%
Median: 0.62%
Q1: 0.00%
Min: 0.00%

With a Dividend Yield of 1.75%, CTSH offers a more attractive income stream than most of its peers in the IT Services industry, signaling a strong commitment to shareholder returns.

ARM vs. CTSH: A comparison of their Dividend Yield (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

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.

CTSH

24.92%

IT Services Industry

Max: 147.75%
Q3: 63.58%
Median: 24.63%
Q1: 0.00%
Min: 0.00%

CTSH’s Dividend Payout Ratio of 24.92% is within the typical range for the IT Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ARM vs. CTSH: A comparison of their Dividend Payout Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Dividend at a Glance

Symbol	ARM	CTSH
Dividend Yield (TTM)	0.00%	1.75%
Dividend Payout Ratio (TTM)	0.00%	24.92%

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.

CTSH

14.21

IT Services Industry

Max: 41.55
Q3: 31.54
Median: 23.25
Q1: 18.12
Min: 6.57

In the lower quartile for the IT Services industry, CTSH’s P/E Ratio of 14.21 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ARM vs. CTSH: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

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.

CTSH

1.69

IT Services Industry

Max: 6.61
Q3: 4.37
Median: 2.02
Q1: 1.20
Min: 0.19

CTSH’s P/S Ratio of 1.69 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ARM vs. CTSH: A comparison of their Price-to-Sales Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

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.

CTSH

2.52

IT Services Industry

Max: 11.19
Q3: 6.38
Median: 3.47
Q1: 2.31
Min: 0.96

CTSH’s P/B Ratio of 2.52 is within the conventional range for the IT Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

ARM vs. CTSH: A comparison of their Price-to-Book Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Valuation at a Glance

Symbol	ARM	CTSH
Price-to-Earnings Ratio (TTM)	203.03	14.21
Price-to-Sales Ratio (TTM)	34.44	1.69
Price-to-Book Ratio (MRQ)	24.45	2.52
Price-to-Free Cash Flow Ratio (TTM)	199.60	15.17