Seek Returns logo

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

Updated on

Here’s a clear look at ARM and DOX, 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, DOX is a standard domestic listing.

SymbolARMDOX
Company NameArm Holdings plcAmdocs Limited
CountryUnited KingdomUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySemiconductors & Semiconductor EquipmentIT Services
Market Capitalization145.94 billion USD9.59 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateSeptember 14, 2023June 19, 1998
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of ARM and DOX 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. DOX: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolARMDOX
5-Day Price Return2.81%-0.29%
13-Week Price Return6.57%-4.82%
26-Week Price Return-10.74%-2.68%
52-Week Price Return6.21%2.88%
Month-to-Date Return-2.54%2.16%
Year-to-Date Return11.69%2.42%
10-Day Avg. Volume3.92M0.81M
3-Month Avg. Volume4.94M0.71M
3-Month Volatility46.77%20.25%
Beta2.730.53

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.

DOX

15.59%

IT Services Industry

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

DOX’s Return on Equity of 15.59% 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. DOX: 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.

DOX

11.39%

IT Services Industry

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

DOX’s Net Profit Margin of 11.39% is aligned with the median group of its peers in the IT Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

ARM vs. DOX: 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.

DOX

14.42%

IT Services Industry

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

DOX’s Operating Profit Margin of 14.42% is around the midpoint for the IT Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

SymbolARMDOX
Return on Equity (TTM)10.64%15.59%
Return on Assets (TTM)8.01%8.56%
Net Profit Margin (TTM)16.96%11.39%
Operating Profit Margin (TTM)18.51%14.42%
Gross Profit Margin (TTM)97.14%36.55%

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.

DOX

1.16

IT Services Industry

Max
2.42
Q3
1.81
Median
1.47
Q1
1.09
Min
0.44

DOX’s Current Ratio of 1.16 aligns with the median group of the IT Services industry, indicating that its short-term liquidity is in line with its sector peers.

ARM vs. DOX: 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.

DOX

0.19

IT Services Industry

Max
2.33
Q3
1.17
Median
0.54
Q1
0.15
Min
0.00

DOX’s Debt-to-Equity Ratio of 0.19 is typical for the IT Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ARM vs. DOX: 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.

DOX

20.28

IT Services Industry

Max
144.50
Q3
84.49
Median
13.76
Q1
2.59
Min
-28.13

DOX’s Interest Coverage Ratio of 20.28 is positioned comfortably within the norm for the IT Services industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

SymbolARMDOX
Current Ratio (MRQ)4.991.16
Quick Ratio (MRQ)4.770.96
Debt-to-Equity Ratio (MRQ)0.000.19
Interest Coverage Ratio (TTM)6.9520.28

Growth

Revenue Growth

ARM vs. DOX: 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. DOX: 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.

DOX

2.24%

IT Services Industry

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

With a Dividend Yield of 2.24%, DOX 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. DOX: 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.

DOX

40.30%

IT Services Industry

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

DOX’s Dividend Payout Ratio of 40.30% is within the typical range for the IT Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolARMDOX
Dividend Yield (TTM)0.00%2.24%
Dividend Payout Ratio (TTM)0.00%40.30%

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.

DOX

17.95

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, DOX’s P/E Ratio of 17.95 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ARM vs. DOX: 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.

DOX

2.04

IT Services Industry

Max
6.61
Q3
4.37
Median
2.02
Q1
1.20
Min
0.19

DOX’s P/S Ratio of 2.04 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. DOX: 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.

DOX

2.97

IT Services Industry

Max
11.19
Q3
6.38
Median
3.47
Q1
2.31
Min
0.96

DOX’s P/B Ratio of 2.97 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. DOX: A comparison of their Price-to-Book Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Valuation at a Glance

SymbolARMDOX
Price-to-Earnings Ratio (TTM)203.0317.95
Price-to-Sales Ratio (TTM)34.442.04
Price-to-Book Ratio (MRQ)24.452.97
Price-to-Free Cash Flow Ratio (TTM)199.6016.14