ARM vs. FICO: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARM and FICO, 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
ARM dominates in value with a market cap of 137.89 billion USD, eclipsing FICO’s 41.57 billion USD by roughly 3.32×.
ARM’s beta of 4.41 points to much larger expected swings compared to FICO’s calmer 1.40, 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 FICO remains a standard domestic listing.
| Symbol | ARM | FICO |
|---|---|---|
| Company Name | Arm Holdings plc American Depositary Shares | Fair Isaac Corporation |
| Country | GB | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Software - Application |
| CEO | Mr. Rene Anthony Andrada Haas | Mr. William J. Lansing |
| Price | 130.45 USD | 1,707.94 USD |
| Market Cap | 137.89 billion USD | 41.57 billion USD |
| Beta | 4.41 | 1.40 |
| Exchange | NASDAQ | NYSE |
| IPO Date | September 14, 2023 | July 22, 1987 |
| ADR | Yes | No |
Performance Comparison
This chart compares the performance of ARM and FICO 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 FICO 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 FICO at 72.18 remains within a more conventional earnings multiple.
- FICO carries a sub-zero price-to-book ratio of -37.06, indicating negative equity. In contrast, ARM (P/B 21.38) has positive book value.
| Symbol | ARM | FICO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 170.26 | 72.18 |
| Forward PEG Ratio (TTM) | 6.09 | 3.42 |
| Price-to-Sales Ratio (P/S, TTM) | 37.33 | 22.59 |
| Price-to-Book Ratio (P/B, TTM) | 21.38 | -37.06 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 220.26 | 60.17 |
| EV-to-EBITDA (TTM) | 221.33 | 53.04 |
| EV-to-Sales (TTM) | 36.85 | 23.90 |
| EV-to-Free Cash Flow (TTM) | 217.45 | 63.64 |
Dividend Comparison
Neither ARM nor FICO currently pays a dividend yield; this often indicates they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.
| Symbol | ARM | FICO |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ARM and FICO, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- FICO has negative equity (debt-to-equity ratio -2.27), suggesting asset shortfalls, whereas ARM at 0.04 preserves healthier equity coverage.
- FICO carries a debt-to-assets ratio of 1.39, suggesting substantial asset funding via debt, while ARM at 0.03 opts for a more conservative financing structure.
- ARM shows “--” for interest coverage, hinting at negligible interest costs, whereas FICO (at 9.57) covers its interest obligations.
| Symbol | ARM | FICO |
|---|---|---|
| Current Ratio (TTM) | 4.96 | 2.11 |
| Quick Ratio (TTM) | 4.96 | 2.11 |
| Debt-to-Equity Ratio (TTM) | 0.04 | -2.27 |
| Debt-to-Assets Ratio (TTM) | 0.03 | 1.39 |
| Interest Coverage Ratio (TTM) | -- | 9.57 |