ARM vs. MCHP: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARM and MCHP, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.
Company Overview
ARM dominates in value with a market cap of 137.89 billion USD, eclipsing MCHP’s 31.87 billion USD by roughly 4.33×.
ARM’s beta of 4.41 points to much larger expected swings compared to MCHP’s calmer 1.41, suggesting both higher upside and downside potential.
ARM trades as an ADR, giving U.S. investors a simple on-ramp to its foreign shares, while MCHP remains a standard domestic listing.
| Symbol | ARM | MCHP |
|---|---|---|
| Company Name | Arm Holdings plc American Depositary Shares | Microchip Technology Incorporated |
| Country | GB | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| CEO | Mr. Rene Anthony Andrada Haas | Mr. Stephen Sanghi |
| Price | 130.45 USD | 59.25 USD |
| Market Cap | 137.89 billion USD | 31.87 billion USD |
| Beta | 4.41 | 1.41 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | September 14, 2023 | March 19, 1993 |
| ADR | Yes | No |
Performance Comparison
This chart compares the performance of ARM and MCHP over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Hover over the lines to see the investment’s value and total return (%) at specific dates.
Data is adjusted for dividends and splits.
Valuation Metrics Comparison
The section examines key financial ratios to assess the valuation of ARM and MCHP based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- ARM trades at a lofty P/E of 170.26, implying strong growth expectations, in contrast to MCHP’s negative P/E of -11792.94 driven by recent losses.
- MCHP shows a negative forward PEG of -221.72, signaling expected earnings contraction, while ARM at 6.09 maintains analysts’ projections for stable or improved profits.
| Symbol | ARM | MCHP |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 170.26 | -11792.94 |
| Forward PEG Ratio (TTM) | 6.09 | -221.72 |
| Price-to-Sales Ratio (P/S, TTM) | 37.33 | 7.24 |
| Price-to-Book Ratio (P/B, TTM) | 21.38 | 5.28 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 220.26 | 34.11 |
| EV-to-EBITDA (TTM) | 221.33 | 44.38 |
| EV-to-Sales (TTM) | 36.85 | 8.65 |
| EV-to-Free Cash Flow (TTM) | 217.45 | 40.74 |
Dividend Comparison
ARM offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while MCHP provides a 2.30% dividend yield, giving investors a steady income stream.
| Symbol | ARM | MCHP |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.30% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ARM and MCHP, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- ARM shows “--” for interest coverage, hinting at negligible interest costs, whereas MCHP (at 1.59) covers its interest obligations.
| Symbol | ARM | MCHP |
|---|---|---|
| Current Ratio (TTM) | 4.96 | 2.25 |
| Quick Ratio (TTM) | 4.96 | 1.23 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 1.12 |
| Debt-to-Assets Ratio (TTM) | 0.03 | 0.43 |
| Interest Coverage Ratio (TTM) | -- | 1.59 |