ARM vs. KLAC: Arm Holdings vs. KLA Stock Comparison

November 11, 2026

How do Arm Holdings (ARM) and KLA (KLAC) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Arm Holdings (ARM) and KLA (KLAC) both belong to the Semiconductors & Semiconductor Equipment industry, though ARM is classified under Semiconductors while KLAC falls under Semiconductor Materials & Equipment.

KLA (KLAC) has more than two decades of public-market history since October 8, 1980, whereas Arm Holdings (ARM) listed on September 14, 2023 and has a much shorter record to draw on.

KLA (KLAC) trades as ordinary local shares, while Arm Holdings (ARM) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for Arm Holdings (ARM) and KLA (KLAC)
Profile Item	ARM	KLAC
Name	Arm Holdings plc ADR	KLA Corporation
Country/Region	United Kingdom	United States
GICS Sector	Information Technology	Information Technology
GICS Industry Group	Semiconductors & Semiconductor Equipment	Semiconductors & Semiconductor Equipment
GICS Industry	Semiconductors & Semiconductor Equipment	Semiconductors & Semiconductor Equipment
GICS Sub-Industry	Semiconductors	Semiconductor Materials & Equipment
Market Capitalization	186.84 billion USD	180.45 billion USD
Currency	USD	USD
Exchange	Nasdaq	Nasdaq
Listing Date	September 14, 2023	October 8, 1980
Security Type	ADR	Common Stock

Price Performance

Cumulative Growth

ARM

KLAC

GSPC

Arm Holdings (ARM) vs. KLA (KLAC), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Arm Holdings (ARM) and KLA (KLAC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Arm Holdings (ARM) and KLA (KLAC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Arm Holdings (ARM) and KLA (KLAC)
Metric	ARM	KLAC
Total Return (1Y)	23.60%	26.92%
Total Return (3Y, Annualized)	53.99%	44.97%
Total Return (5Y, Annualized)	--	30.55%

Risk Profile

Drawdown History

ARM

KLAC

GSPC

Arm Holdings (ARM) vs. KLA (KLAC), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Arm Holdings (ARM) and KLA (KLAC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Arm Holdings (ARM) and KLA (KLAC)
Metric	ARM	KLAC
Volatility (1Y, Annualized)	82.24%	63.92%
Beta (5Y)	3.92	1.51
Max Drawdown (5Y)	-62.06%	-56.93%
Avg. Volume (3M)	5.05M	10.66M

Risk-Adjusted Performance

Risk-Return Positioning

ARM and KLAC are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Arm Holdings (ARM) and KLA (KLAC)
Metric	ARM	KLAC
Sharpe Ratio (1Y)	0.23	0.35
Sortino Ratio (1Y)	0.38	0.50

Profitability

ROE (TTM)

KLA (KLAC) at 91.38% clears its industry range for ROE, a sharper capital-efficiency signal than Arm Holdings (ARM) at 11.35%, which is closer to a typical peer reading.

ARM

Semiconductors & Semiconductor Equipment industry group

11.35%

Max: 52.82%
Q3: 22.26%
ARM: 11.35%
Median: 10.58%
Q1: 1.29%
Min: -16.89%

KLAC

Semiconductors & Semiconductor Equipment industry group

91.38%

KLAC: 91.38%
Max: 52.82%
Q3: 22.26%
Median: 10.58%
Q1: 1.29%
Min: -16.89%

Arm Holdings (ARM) vs. KLA (KLAC): A comparison of their ROE against the Semiconductors & Semiconductor Equipment industry group benchmark.

Net Margin (TTM)

KLA (KLAC) at 36.25% retains a top-quartile share of revenue as profit, ahead of Arm Holdings (ARM) at 17.13%, which keeps about the industry-typical share.

ARM

Semiconductors & Semiconductor Equipment industry group

17.13%

Max: 63.80%
Q3: 28.36%
ARM: 17.13%
Median: 11.44%
Q1: 0.90%
Min: -37.77%

KLAC

Semiconductors & Semiconductor Equipment industry group

36.25%

Max: 63.80%
KLAC: 36.25%
Q3: 28.36%
Median: 11.44%
Q1: 0.90%
Min: -37.77%

Arm Holdings (ARM) vs. KLA (KLAC): A comparison of their net margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Operating Margin (TTM)

KLA (KLAC) at 45.01% operates in the top operating margin quartile, ahead of Arm Holdings (ARM) at 13.93%, which runs around its industry’s norm.

ARM

Semiconductors & Semiconductor Equipment industry group

13.93%

Max: 58.66%
Q3: 30.23%
Median: 15.91%
ARM: 13.93%
Q1: 7.54%
Min: -25.74%

KLAC

Semiconductors & Semiconductor Equipment industry group

45.01%

Max: 58.66%
KLAC: 45.01%
Q3: 30.23%
Median: 15.91%
Q1: 7.54%
Min: -25.74%

Arm Holdings (ARM) vs. KLA (KLAC): A comparison of their operating margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Profitability Metrics

Profitability metrics for Arm Holdings (ARM) and KLA (KLAC)
Metric	ARM	KLAC
ROE (TTM)	11.35%	91.38%
ROA (TTM)	5.50%	22.27%
Net Margin (TTM)	17.13%	36.25%
Operating Margin (TTM)	13.93%	45.01%
Gross Margin (TTM)	97.44%	61.47%

Growth

Revenue Growth

Both Arm Holdings (ARM) at 22.79% and KLA (KLAC) at 11.71% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Arm Holdings (ARM) vs. KLA (KLAC): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Arm Holdings (ARM) at 13.33% and KLA (KLAC) at 20.51% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Arm Holdings (ARM) vs. KLA (KLAC): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Arm Holdings (ARM) and KLA (KLAC)
Metric	ARM	KLAC
Revenue Growth (YoY)	22.79%	11.71%
Revenue Growth (3Y CAGR)	22.46%	8.96%
EPS Growth (YoY)	13.33%	20.51%
EPS Growth (3Y CAGR)	18.51%	14.87%

Financial Strength

Current Ratio (MRQ)

KLA (KLAC) at 2.76 keeps current ratio within its industry’s typical mid-range, while Arm Holdings (ARM) at 6.35 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

ARM

Semiconductors & Semiconductor Equipment industry group

6.35

Max: 10.33
ARM: 6.35
Q3: 5.62
Median: 3.33
Q1: 2.35
Min: 1.03

KLAC

Semiconductors & Semiconductor Equipment industry group

2.76

Max: 10.33
Q3: 5.62
Median: 3.33
KLAC: 2.76
Q1: 2.35
Min: 1.03

Arm Holdings (ARM) vs. KLA (KLAC): A comparison of their current ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Debt / Equity (MRQ)

Arm Holdings (ARM) at 0.06 carries an industry-typical debt-to-equity mix, while KLA (KLAC) at 0.92 uses more debt funding than most peers.

ARM

Semiconductors & Semiconductor Equipment industry group

0.06

Max: 1.46
Q3: 0.65
Median: 0.27
ARM: 0.06
Q1: 0.04
Min: 0.00

KLAC

Semiconductors & Semiconductor Equipment industry group

0.92

Max: 1.46
KLAC: 0.92
Q3: 0.65
Median: 0.27
Q1: 0.04
Min: 0.00

Arm Holdings (ARM) vs. KLA (KLAC): A comparison of their debt-to-equity ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Arm Holdings (ARM) and KLA (KLAC)
Metric	ARM	KLAC
Current Ratio (MRQ)	6.35	2.76
Debt / Equity (MRQ)	0.06	0.92
Net Debt / EBITDA	-2.77	0.19

Dividends

Dividend Yield (TTM)

Arm Holdings (ARM) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile KLA (KLAC) reports a yield of 0.65%, ranking against industry peers normally.

ARM

Semiconductors & Semiconductor Equipment industry group

0.00%

Max: 1.37%
Q3: 0.65%
ARM: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

KLAC

Semiconductors & Semiconductor Equipment industry group

0.65%

Max: 1.37%
Q3: 0.65%
KLAC: 0.65%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Arm Holdings (ARM) vs. KLA (KLAC): A comparison of their dividend yield against the Semiconductors & Semiconductor Equipment industry group benchmark.

Dividend Payout Ratio (TTM)

Arm Holdings (ARM) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile KLA (KLAC) reports a payout of 21.03%, ranking against industry peers normally.

ARM

Semiconductors & Semiconductor Equipment industry group

0.00%

Max: 49.64%
Q3: 21.71%
ARM: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

KLAC

Semiconductors & Semiconductor Equipment industry group

21.03%

Max: 49.64%
Q3: 21.71%
KLAC: 21.03%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Arm Holdings (ARM) vs. KLA (KLAC): A comparison of their payout ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Dividend Metrics

Dividend metrics for Arm Holdings (ARM) and KLA (KLAC)
Metric	ARM	KLAC
Dividend Yield (TTM)	0.00%	0.65%
Dividend Payout Ratio (TTM)	0.00%	21.03%

Valuation

P/E Ratio (TTM)

KLA (KLAC) at 34.71 is near its industry’s usual P/E ratio, while Arm Holdings (ARM) at 200.71 sits above its peer range — an unusually expensive price for ARM’s trailing earnings.

ARM

Semiconductors & Semiconductor Equipment industry group

200.71

ARM: 200.71
Max: 110.34
Q3: 66.81
Median: 37.02
Q1: 23.96
Min: 8.12

KLAC

Semiconductors & Semiconductor Equipment industry group

34.71

Max: 110.34
Q3: 66.81
Median: 37.02
KLAC: 34.71
Q1: 23.96
Min: 8.12

Arm Holdings (ARM) vs. KLA (KLAC): A comparison of their P/E ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

P/S Ratio (TTM)

Both look expensive on sales: KLA (KLAC) at 12.44 sits in the upper P/S ratio quartile, and Arm Holdings (ARM) at 34.20 prices even higher, above its industry range.

ARM

Semiconductors & Semiconductor Equipment industry group

34.20

ARM: 34.20
Max: 21.42
Q3: 12.27
Median: 5.76
Q1: 2.73
Min: 0.00

KLAC

Semiconductors & Semiconductor Equipment industry group

12.44

Max: 21.42
KLAC: 12.44
Q3: 12.27
Median: 5.76
Q1: 2.73
Min: 0.00

Arm Holdings (ARM) vs. KLA (KLAC): A comparison of their P/S ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

P/B Ratio (MRQ)

Measured against book value, both Arm Holdings (ARM) at 20.56 and KLA (KLAC) at 27.67 look expensive — each P/B ratio sits above its industry’s benchmark range.

ARM

Semiconductors & Semiconductor Equipment industry group

20.56

ARM: 20.56
Max: 14.06
Q3: 7.44
Median: 4.29
Q1: 2.30
Min: 0.20

KLAC

Semiconductors & Semiconductor Equipment industry group

27.67

KLAC: 27.67
Max: 14.06
Q3: 7.44
Median: 4.29
Q1: 2.30
Min: 0.20

Arm Holdings (ARM) vs. KLA (KLAC): A comparison of their P/B ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Valuation Metrics

Valuation metrics for Arm Holdings (ARM) and KLA (KLAC)
Metric	ARM	KLAC
P/E Ratio (TTM)	200.71	34.71
P/S Ratio (TTM)	34.20	12.44
P/B Ratio (MRQ)	20.56	27.67
Free Cash Flow Yield (TTM)	0.61%	1.56%