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

Company Overview

ARM’s market capitalization of 140.70 billion USD is substantially larger than HOOD’s 66.15 billion USD, indicating a significant difference in their market valuations.

ARM’s beta of 4.10 points to significantly higher volatility compared to HOOD (beta: 2.26), 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, HOOD is a standard domestic listing.

Performance Comparison

This chart compares the performance of ARM and HOOD over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of ARM and HOOD. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• ARM’s Price-to-Earnings (P/E) ratio of 173.74 is very high. This often means that its current market price reflects high investor confidence in its future earnings potential, but it could also suggest the stock is expensive relative to its current earnings power.
• ARM’s Forward PEG ratio of 6.52 is very high, suggesting its stock might be overvalued if its price has substantially outrun its future earnings growth forecast. HOOD’s Forward PEG ratio of -0.42 is negative, often an indicator of issues such as negative current earnings or anticipated earnings contraction, which calls its fundamental valuation into question.

Dividend Comparison

Neither ARM nor HOOD currently pays a dividend; this often suggests they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.

Financial Strength Metrics Comparison

Explore the financial strength details for ARM and HOOD in the table below.