Seek Returns logo

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

Updated on

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

SymbolARMGRAB
Company NameArm Holdings plcGrab Holdings Limited
CountryUnited KingdomSingapore
GICS SectorInformation TechnologyIndustrials
GICS IndustrySemiconductors & Semiconductor EquipmentGround Transportation
Market Capitalization145.94 billion USD20.91 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateSeptember 14, 2023December 1, 2020
Security TypeADRCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolARMGRAB
5-Day Price Return2.81%-0.79%
13-Week Price Return6.57%1.01%
26-Week Price Return-10.74%-6.18%
52-Week Price Return6.21%56.56%
Month-to-Date Return-2.54%2.45%
Year-to-Date Return11.69%6.14%
10-Day Avg. Volume3.92M23.85M
3-Month Avg. Volume4.94M34.63M
3-Month Volatility46.77%38.95%
Beta2.730.86

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.

GRAB

1.73%

Ground Transportation Industry

Max
22.11%
Q3
13.84%
Median
9.66%
Q1
7.55%
Min
0.36%

GRAB’s Return on Equity of 1.73% is in the lower quartile for the Ground Transportation industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

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

GRAB

3.61%

Ground Transportation Industry

Max
32.20%
Q3
18.59%
Median
7.11%
Q1
4.13%
Min
-10.38%

Falling into the lower quartile for the Ground Transportation industry, GRAB’s Net Profit Margin of 3.61% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

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

GRAB

-1.63%

Ground Transportation Industry

Max
41.31%
Q3
23.16%
Median
11.33%
Q1
6.82%
Min
-12.08%

GRAB has a negative Operating Profit Margin of -1.63%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

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

Profitability at a Glance

SymbolARMGRAB
Return on Equity (TTM)10.64%1.73%
Return on Assets (TTM)8.01%1.13%
Net Profit Margin (TTM)16.96%3.61%
Operating Profit Margin (TTM)18.51%-1.63%
Gross Profit Margin (TTM)97.14%42.87%

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.

GRAB

1.88

Ground Transportation Industry

Max
2.03
Q3
1.26
Median
0.89
Q1
0.73
Min
0.38

GRAB’s Current Ratio of 1.88 is in the upper quartile for the Ground Transportation industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

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

GRAB

0.30

Ground Transportation Industry

Max
2.51
Q3
1.51
Median
1.06
Q1
0.47
Min
0.00

Falling into the lower quartile for the Ground Transportation industry, GRAB’s Debt-to-Equity Ratio of 0.30 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

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

GRAB

-3.80

Ground Transportation Industry

Max
51.07
Q3
22.54
Median
7.94
Q1
2.72
Min
-24.57

GRAB has a negative Interest Coverage Ratio of -3.80. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

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

Financial Strength at a Glance

SymbolARMGRAB
Current Ratio (MRQ)4.991.88
Quick Ratio (MRQ)4.771.82
Debt-to-Equity Ratio (MRQ)0.000.30
Interest Coverage Ratio (TTM)6.95-3.80

Growth

Revenue Growth

ARM vs. GRAB: 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. GRAB: 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.

GRAB

0.00%

Ground Transportation Industry

Max
5.44%
Q3
2.49%
Median
1.53%
Q1
0.39%
Min
0.00%

GRAB 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.

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

GRAB

0.00%

Ground Transportation Industry

Max
137.07%
Q3
74.71%
Median
41.16%
Q1
15.12%
Min
0.00%

GRAB 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.

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

Dividend at a Glance

SymbolARMGRAB
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

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.

GRAB

184.71

Ground Transportation Industry

Max
42.59
Q3
24.86
Median
16.38
Q1
12.79
Min
4.37

At 184.71, GRAB’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Ground Transportation 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. GRAB: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Ground Transportation 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.

GRAB

6.67

Ground Transportation Industry

Max
4.02
Q3
2.20
Median
1.23
Q1
0.87
Min
0.22

With a P/S Ratio of 6.67, GRAB trades at a valuation that eclipses even the highest in the Ground Transportation industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

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

GRAB

3.22

Ground Transportation Industry

Max
4.95
Q3
2.78
Median
1.38
Q1
1.17
Min
0.64

GRAB’s P/B Ratio of 3.22 is in the upper tier for the Ground Transportation industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

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

Valuation at a Glance

SymbolARMGRAB
Price-to-Earnings Ratio (TTM)203.03184.71
Price-to-Sales Ratio (TTM)34.446.67
Price-to-Book Ratio (MRQ)24.453.22
Price-to-Free Cash Flow Ratio (TTM)199.6033.67