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

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

SymbolARMLDOS
Company NameArm Holdings plcLeidos Holdings, Inc.
CountryUnited KingdomUnited States
GICS SectorInformation TechnologyIndustrials
GICS IndustrySemiconductors & Semiconductor EquipmentProfessional Services
Market Capitalization138.93 billion USD23.11 billion USD
ExchangeNasdaqGSNYSE
Listing DateSeptember 14, 2023October 17, 2006
Security TypeADRCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolARMLDOS
5-Day Price Return-5.36%0.96%
13-Week Price Return-1.43%12.93%
26-Week Price Return-13.77%37.90%
52-Week Price Return2.85%19.99%
Month-to-Date Return-5.21%12.85%
Year-to-Date Return8.63%25.06%
10-Day Avg. Volume4.00M0.84M
3-Month Avg. Volume5.00M1.14M
3-Month Volatility46.58%24.66%
Beta2.730.71

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.

LDOS

31.25%

Professional Services Industry

Max
52.17%
Q3
30.06%
Median
22.21%
Q1
11.67%
Min
-13.44%

In the upper quartile for the Professional Services industry, LDOS’s Return on Equity of 31.25% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

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

LDOS

8.22%

Professional Services Industry

Max
26.06%
Q3
13.34%
Median
7.88%
Q1
3.50%
Min
-2.93%

LDOS’s Net Profit Margin of 8.22% is aligned with the median group of its peers in the Professional Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

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

LDOS

11.95%

Professional Services Industry

Max
35.84%
Q3
19.38%
Median
12.54%
Q1
7.36%
Min
-5.21%

LDOS’s Operating Profit Margin of 11.95% is around the midpoint for the Professional Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

SymbolARMLDOS
Return on Equity (TTM)10.64%31.25%
Return on Assets (TTM)8.01%10.54%
Net Profit Margin (TTM)16.96%8.22%
Operating Profit Margin (TTM)18.51%11.95%
Gross Profit Margin (TTM)97.14%17.56%

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.

LDOS

1.62

Professional Services Industry

Max
2.45
Q3
1.65
Median
1.26
Q1
1.10
Min
0.47

LDOS’s Current Ratio of 1.62 aligns with the median group of the Professional Services industry, indicating that its short-term liquidity is in line with its sector peers.

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

LDOS

1.09

Professional Services Industry

Max
2.63
Q3
1.44
Median
0.91
Q1
0.49
Min
0.00

LDOS’s Debt-to-Equity Ratio of 1.09 is typical for the Professional Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

LDOS

11.64

Professional Services Industry

Max
39.67
Q3
20.05
Median
11.07
Q1
5.36
Min
-2.22

LDOS’s Interest Coverage Ratio of 11.64 is positioned comfortably within the norm for the Professional Services industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

SymbolARMLDOS
Current Ratio (MRQ)4.991.62
Quick Ratio (MRQ)4.771.50
Debt-to-Equity Ratio (MRQ)0.001.09
Interest Coverage Ratio (TTM)6.9511.64

Growth

Revenue Growth

ARM vs. LDOS: 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. LDOS: 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.

LDOS

0.91%

Professional Services Industry

Max
5.28%
Q3
2.51%
Median
1.63%
Q1
0.62%
Min
0.00%

LDOS’s Dividend Yield of 0.91% is consistent with its peers in the Professional Services industry, providing a dividend return that is standard for its sector.

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

LDOS

14.91%

Professional Services Industry

Max
109.23%
Q3
64.39%
Median
47.00%
Q1
20.35%
Min
0.00%

LDOS’s Dividend Payout Ratio of 14.91% is in the lower quartile for the Professional Services industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

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

Dividend at a Glance

SymbolARMLDOS
Dividend Yield (TTM)0.00%0.91%
Dividend Payout Ratio (TTM)0.00%14.91%

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.

LDOS

16.43

Professional Services Industry

Max
49.59
Q3
36.59
Median
28.13
Q1
18.55
Min
10.07

In the lower quartile for the Professional Services industry, LDOS’s P/E Ratio of 16.43 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

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

LDOS

1.35

Professional Services Industry

Max
9.54
Q3
5.11
Median
2.10
Q1
0.75
Min
0.11

LDOS’s P/S Ratio of 1.35 aligns with the market consensus for the Professional Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

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

LDOS

4.54

Professional Services Industry

Max
13.75
Q3
8.87
Median
4.35
Q1
2.43
Min
0.54

LDOS’s P/B Ratio of 4.54 is within the conventional range for the Professional Services 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. LDOS: A comparison of their Price-to-Book Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Professional Services industry benchmarks.

Valuation at a Glance

SymbolARMLDOS
Price-to-Earnings Ratio (TTM)203.0316.43
Price-to-Sales Ratio (TTM)34.441.35
Price-to-Book Ratio (MRQ)24.454.54
Price-to-Free Cash Flow Ratio (TTM)199.6017.20