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

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

Company Overview

ARM’s market capitalization of 163.93 billion USD is substantially larger than FIS’s 42.96 billion USD, indicating a significant difference in their market valuations.

ARM’s beta of 4.10 points to significantly higher volatility compared to FIS (beta: 1.08), suggesting ARM has greater potential for both gains and losses relative to market movements.

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

SymbolARMFIS
Company NameArm Holdings plc American Depositary SharesFidelity National Information Services, Inc.
CountryGBUS
SectorTechnologyTechnology
IndustrySemiconductorsConsumer Electronics
CEORene Anthony Andrada HaasStephanie L. Ferris
Price155.09 USD81.77 USD
Market Cap163.93 billion USD42.96 billion USD
Beta4.101.08
ExchangeNASDAQNYSE
IPO DateSeptember 14, 2023June 20, 2001
ADRYesNo

Historical Performance

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

Profitability

Return on Equity

ARM

12.71%

Semiconductors Industry

Max
41.84%
Q3
15.81%
Median
6.31%
Q1
-5.54%
Min
-30.12%

ARM’s Return on Equity of 12.71% is on par with the norm for the Semiconductors industry, indicating its profitability relative to shareholder equity is typical for the sector.

FIS

5.13%

Consumer Electronics Industry

Max
14.30%
Q3
14.30%
Median
5.13%
Q1
-15.88%
Min
-27.23%

FIS’s Return on Equity of 5.13% is on par with the norm for the Consumer Electronics industry, indicating its profitability relative to shareholder equity is typical for the sector.

ARM vs. FIS: A comparison of their ROE against their respective Semiconductors and Consumer Electronics industry benchmarks.

Return on Invested Capital

ARM

11.37%

Semiconductors Industry

Max
30.91%
Q3
11.34%
Median
4.08%
Q1
-2.17%
Min
-19.59%

In the upper quartile for the Semiconductors industry, ARM’s Return on Invested Capital of 11.37% signifies a highly effective use of its capital to generate profits when compared to its peers.

FIS

4.09%

Consumer Electronics Industry

Max
4.18%
Q3
4.18%
Median
4.09%
Q1
-0.34%
Min
-0.34%

FIS’s Return on Invested Capital of 4.09% is in line with the norm for the Consumer Electronics industry, reflecting a standard level of efficiency in generating profits from its capital base.

ARM vs. FIS: A comparison of their ROIC against their respective Semiconductors and Consumer Electronics industry benchmarks.

Net Profit Margin

ARM

19.77%

Semiconductors Industry

Max
51.69%
Q3
19.67%
Median
8.56%
Q1
-5.44%
Min
-38.60%

A Net Profit Margin of 19.77% places ARM in the upper quartile for the Semiconductors industry, signifying strong profitability and more effective cost management than most of its peers.

FIS

8.10%

Consumer Electronics Industry

Max
24.30%
Q3
8.81%
Median
8.10%
Q1
-4.74%
Min
-7.22%

FIS’s Net Profit Margin of 8.10% is aligned with the median group of its peers in the Consumer Electronics industry. This indicates its ability to convert revenue into profit is typical for the sector.

ARM vs. FIS: A comparison of their Net Profit Margin against their respective Semiconductors and Consumer Electronics industry benchmarks.

Operating Profit Margin

ARM

20.74%

Semiconductors Industry

Max
58.03%
Q3
22.12%
Median
8.40%
Q1
-3.73%
Min
-36.14%

ARM’s Operating Profit Margin of 20.74% is around the midpoint for the Semiconductors industry, indicating that its efficiency in managing core business operations is typical for the sector.

FIS

16.77%

Consumer Electronics Industry

Max
31.81%
Q3
16.77%
Median
10.95%
Q1
-0.21%
Min
-4.78%

FIS’s Operating Profit Margin of 16.77% is around the midpoint for the Consumer Electronics industry, indicating that its efficiency in managing core business operations is typical for the sector.

ARM vs. FIS: A comparison of their Operating Margin against their respective Semiconductors and Consumer Electronics industry benchmarks.

Profitability at a Glance

SymbolARMFIS
Return on Equity (TTM)12.71%5.13%
Return on Assets (TTM)8.87%2.51%
Return on Invested Capital (TTM)11.37%4.09%
Net Profit Margin (TTM)19.77%8.10%
Operating Profit Margin (TTM)20.74%16.77%
Gross Profit Margin (TTM)95.83%37.13%

Financial Strength

Current Ratio

ARM

5.20

Semiconductors Industry

Max
9.10
Q3
5.23
Median
3.09
Q1
2.49
Min
1.02

ARM’s Current Ratio of 5.20 aligns with the median group of the Semiconductors industry, indicating that its short-term liquidity is in line with its sector peers.

FIS

0.63

Consumer Electronics Industry

Max
0.82
Q3
0.82
Median
0.70
Q1
0.64
Min
0.63

FIS’s Current Ratio of 0.63 falls into the lower quartile for the Consumer Electronics industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ARM vs. FIS: A comparison of their Current Ratio against their respective Semiconductors and Consumer Electronics industry benchmarks.

Debt-to-Equity Ratio

ARM

0.05

Semiconductors Industry

Max
0.97
Q3
0.46
Median
0.21
Q1
0.05
Min
0.00

ARM’s Debt-to-Equity Ratio of 0.05 is typical for the Semiconductors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

FIS

0.80

Consumer Electronics Industry

Max
2.23
Q3
1.47
Median
0.80
Q1
0.51
Min
0.16

FIS’s Debt-to-Equity Ratio of 0.80 is typical for the Consumer Electronics industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ARM vs. FIS: A comparison of their D/E Ratio against their respective Semiconductors and Consumer Electronics industry benchmarks.

Interest Coverage Ratio

ARM

--

Semiconductors Industry

Max
36.25
Q3
29.12
Median
7.01
Q1
-1.22
Min
-18.18

Interest Coverage Ratio data for ARM is currently unavailable.

FIS

6.73

Consumer Electronics Industry

Max
14.74
Q3
8.73
Median
3.32
Q1
-40.43
Min
-114.16

FIS’s Interest Coverage Ratio of 6.73 is positioned comfortably within the norm for the Consumer Electronics industry, indicating a standard and healthy capacity to cover its interest payments.

ARM vs. FIS: A comparison of their Interest Coverage against their respective Semiconductors and Consumer Electronics industry benchmarks.

Financial Strength at a Glance

SymbolARMFIS
Current Ratio (TTM)5.200.63
Quick Ratio (TTM)5.200.63
Debt-to-Equity Ratio (TTM)0.050.80
Debt-to-Asset Ratio (TTM)0.040.37
Net Debt-to-EBITDA Ratio (TTM)-2.313.28
Interest Coverage Ratio (TTM)--6.73

Growth

The following charts compare key year-over-year (YoY) growth metrics for ARM and FIS. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ARM vs. FIS: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ARM vs. FIS: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ARM vs. FIS: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ARM

0.00%

Semiconductors Industry

Max
6.48%
Q3
0.93%
Median
0.00%
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.

FIS

1.86%

Consumer Electronics Industry

Max
1.88%
Q3
0.53%
Median
0.50%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.86%, FIS offers a more attractive income stream than most of its peers in the Consumer Electronics industry, signaling a strong commitment to shareholder returns.

ARM vs. FIS: A comparison of their Dividend Yield against their respective Semiconductors and Consumer Electronics industry benchmarks.

Dividend Payout Ratio

ARM

0.00%

Semiconductors Industry

Max
204.29%
Q3
31.85%
Median
0.00%
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.

FIS

98.30%

Consumer Electronics Industry

Max
98.30%
Q3
15.74%
Median
10.10%
Q1
0.00%
Min
0.00%

FIS’s Dividend Payout Ratio of 98.30% is in the upper quartile for the Consumer Electronics industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

ARM vs. FIS: A comparison of their Payout Ratio against their respective Semiconductors and Consumer Electronics industry benchmarks.

Dividend at a Glance

SymbolARMFIS
Dividend Yield (TTM)0.00%1.86%
Dividend Payout Ratio (TTM)0.00%98.30%

Valuation

Price-to-Earnings Ratio

ARM

206.59

Semiconductors Industry

Max
86.15
Q3
47.38
Median
27.87
Q1
18.89
Min
4.73

At 206.59, ARM’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

FIS

52.33

Consumer Electronics Industry

Max
51.71
Q3
41.35
Median
30.99
Q1
25.46
Min
19.94

At 52.33, FIS’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Consumer Electronics industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ARM vs. FIS: A comparison of their P/E Ratio against their respective Semiconductors and Consumer Electronics industry benchmarks.

Forward P/E to Growth Ratio

ARM

7.75

Semiconductors Industry

Max
4.73
Q3
2.80
Median
1.11
Q1
0.68
Min
0.01

The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.

FIS

7.25

Consumer Electronics Industry

Max
7.16
Q3
5.62
Median
3.99
Q1
2.77
Min
2.43

The Forward PEG Ratio is often not a primary valuation metric in the Consumer Electronics industry.

ARM vs. FIS: A comparison of their Forward PEG Ratio against their respective Semiconductors and Consumer Electronics industry benchmarks.

Price-to-Sales Ratio

ARM

40.91

Semiconductors Industry

Max
21.96
Q3
10.21
Median
4.45
Q1
2.32
Min
0.48

With a P/S Ratio of 40.91, ARM trades at a valuation that eclipses even the highest in the Semiconductors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

FIS

4.22

Consumer Electronics Industry

Max
7.50
Q3
4.17
Median
1.76
Q1
0.88
Min
0.16

FIS’s P/S Ratio of 4.22 is in the upper echelon for the Consumer Electronics industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

ARM vs. FIS: A comparison of their P/S Ratio against their respective Semiconductors and Consumer Electronics industry benchmarks.

Price-to-Book Ratio

ARM

23.92

Semiconductors Industry

Max
13.12
Q3
6.49
Median
3.31
Q1
1.74
Min
0.23

At 23.92, ARM’s P/B Ratio is at an extreme premium to the Semiconductors 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.

FIS

2.87

Consumer Electronics Industry

Max
3.36
Q3
3.36
Median
2.83
Q1
2.78
Min
2.78

FIS’s P/B Ratio of 2.87 is within the conventional range for the Consumer Electronics 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. FIS: A comparison of their P/B Ratio against their respective Semiconductors and Consumer Electronics industry benchmarks.

Valuation at a Glance

SymbolARMFIS
Price-to-Earnings Ratio (P/E, TTM)206.5952.33
Forward PEG Ratio (TTM)7.757.25
Price-to-Sales Ratio (P/S, TTM)40.914.22
Price-to-Book Ratio (P/B, TTM)23.922.87
Price-to-Free Cash Flow Ratio (P/FCF, TTM)1011.9127.23
EV-to-EBITDA (TTM)216.8515.75
EV-to-Sales (TTM)40.485.32