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

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

SymbolARMFTV
Company NameArm Holdings plcFortive Corporation
CountryUnited KingdomUnited States
GICS SectorInformation TechnologyIndustrials
GICS IndustrySemiconductors & Semiconductor EquipmentMachinery
Market Capitalization138.93 billion USD16.25 billion USD
ExchangeNasdaqGSNYSE
Listing DateSeptember 14, 2023July 5, 2016
Security TypeADRCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolARMFTV
5-Day Price Return-5.36%0.50%
13-Week Price Return-1.43%-33.85%
26-Week Price Return-13.77%-41.18%
52-Week Price Return2.85%-31.92%
Month-to-Date Return-5.21%0.23%
Year-to-Date Return8.63%-35.95%
10-Day Avg. Volume4.00M4.68M
3-Month Avg. Volume5.00M3.81M
3-Month Volatility46.58%54.38%
Beta2.731.09

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.

FTV

7.44%

Machinery Industry

Max
34.68%
Q3
19.06%
Median
13.13%
Q1
8.53%
Min
-4.87%

FTV’s Return on Equity of 7.44% is in the lower quartile for the Machinery industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

ARM vs. FTV: A comparison of their Return on Equity (TTM) against their respective Semiconductors & Semiconductor Equipment and Machinery 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.

FTV

12.51%

Machinery Industry

Max
19.74%
Q3
11.24%
Median
8.13%
Q1
5.38%
Min
-1.11%

A Net Profit Margin of 12.51% places FTV in the upper quartile for the Machinery industry, signifying strong profitability and more effective cost management than most of its peers.

ARM vs. FTV: A comparison of their Net Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and Machinery 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.

FTV

17.22%

Machinery Industry

Max
26.63%
Q3
16.15%
Median
11.27%
Q1
7.72%
Min
-4.91%

An Operating Profit Margin of 17.22% places FTV in the upper quartile for the Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

SymbolARMFTV
Return on Equity (TTM)10.64%7.44%
Return on Assets (TTM)8.01%4.40%
Net Profit Margin (TTM)16.96%12.51%
Operating Profit Margin (TTM)18.51%17.22%
Gross Profit Margin (TTM)97.14%59.78%

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.

FTV

0.98

Machinery Industry

Max
3.83
Q3
2.32
Median
1.72
Q1
1.28
Min
0.78

FTV’s Current Ratio of 0.98 falls into the lower quartile for the Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ARM vs. FTV: A comparison of their Current Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Machinery 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.

FTV

0.46

Machinery Industry

Max
1.49
Q3
0.75
Median
0.44
Q1
0.26
Min
0.00

FTV’s Debt-to-Equity Ratio of 0.46 is typical for the Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ARM vs. FTV: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Machinery 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.

FTV

6.04

Machinery Industry

Max
67.55
Q3
33.79
Median
13.87
Q1
7.97
Min
-1.43

In the lower quartile for the Machinery industry, FTV’s Interest Coverage Ratio of 6.04 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

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

Financial Strength at a Glance

SymbolARMFTV
Current Ratio (MRQ)4.990.98
Quick Ratio (MRQ)4.770.77
Debt-to-Equity Ratio (MRQ)0.000.46
Interest Coverage Ratio (TTM)6.956.04

Growth

Revenue Growth

ARM vs. FTV: 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. FTV: 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.

FTV

0.67%

Machinery Industry

Max
5.32%
Q3
2.84%
Median
1.87%
Q1
1.09%
Min
0.00%

FTV’s Dividend Yield of 0.67% is in the lower quartile for the Machinery industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

ARM vs. FTV: A comparison of their Dividend Yield (TTM) against their respective Semiconductors & Semiconductor Equipment and Machinery 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.

FTV

14.22%

Machinery Industry

Max
202.17%
Q3
98.65%
Median
55.54%
Q1
29.03%
Min
0.00%

FTV’s Dividend Payout Ratio of 14.22% is in the lower quartile for the Machinery industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

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

Dividend at a Glance

SymbolARMFTV
Dividend Yield (TTM)0.00%0.67%
Dividend Payout Ratio (TTM)0.00%14.22%

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.

FTV

21.25

Machinery Industry

Max
53.66
Q3
31.29
Median
22.00
Q1
16.18
Min
7.00

FTV’s P/E Ratio of 21.25 is within the middle range for the Machinery industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ARM vs. FTV: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Machinery 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.

FTV

2.66

Machinery Industry

Max
5.04
Q3
2.72
Median
1.67
Q1
1.04
Min
0.24

FTV’s P/S Ratio of 2.66 aligns with the market consensus for the Machinery industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ARM vs. FTV: A comparison of their Price-to-Sales Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Machinery 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.

FTV

2.34

Machinery Industry

Max
7.23
Q3
3.90
Median
2.52
Q1
1.47
Min
0.49

FTV’s P/B Ratio of 2.34 is within the conventional range for the Machinery 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. FTV: A comparison of their Price-to-Book Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Machinery industry benchmarks.

Valuation at a Glance

SymbolARMFTV
Price-to-Earnings Ratio (TTM)203.0321.25
Price-to-Sales Ratio (TTM)34.442.66
Price-to-Book Ratio (MRQ)24.452.34
Price-to-Free Cash Flow Ratio (TTM)199.6011.79