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

Company Overview

MSFT towers over ARM with a market cap of 3,363.74 billion USD, roughly 24.40 times the 137.89 billion USD of its peer.

ARM rides a wilder wave with a beta of 4.41, hinting at bigger swings than MSFT’s steadier 0.98.

Worth noting: ARM flies the ADR flag, tying it to a foreign outfit on U.S. soil, while MSFT sticks to plain-vanilla U.S. listing.

Performance Comparison

This chart compares the performance of ARM and MSFT 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 MSFT based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

• ARM stands out with a P/E of 170.26, far exceeding conventional benchmarks. This elevated figure means its stock price is disproportionately large compared to its earnings over the past twelve months, often reflecting strong investor optimism about its future. Meanwhile, MSFT at 34.82 aligns with more typical earnings multiples.

Dividend Comparison

ARM pays no dividends, focusing all profits on growth, appealing to capital-gains investors. Meanwhile, MSFT’s 0.72% yield rewards shareholders, showing financial confidence while supporting objectives—a contrast to ARM’s growth-only approach.

Financial Strength Metrics Comparison

This section dives into the financial resilience of ARM and MSFT, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

• ARM posts an interest coverage of “--”, hinting at interest costs so low they’re negligible—often from scant debt or dirt-cheap rates—while MSFT at 49.43 handles interest with solid earnings.