ARM vs. MSI: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARM and MSI, 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 MSI’s 71.18 billion USD by roughly 1.94×.
ARM’s beta of 4.41 points to much larger expected swings compared to MSI’s calmer 0.99, 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 MSI remains a standard domestic listing.
| Symbol | ARM | MSI |
|---|---|---|
| Company Name | Arm Holdings plc American Depositary Shares | Motorola Solutions, Inc. |
| Country | GB | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Communication Equipment |
| CEO | Mr. Rene Anthony Andrada Haas | Mr. Gregory Q. Brown |
| Price | 130.45 USD | 426.44 USD |
| Market Cap | 137.89 billion USD | 71.18 billion USD |
| Beta | 4.41 | 0.99 |
| Exchange | NASDAQ | NYSE |
| IPO Date | September 14, 2023 | March 17, 1980 |
| ADR | Yes | No |
Performance Comparison
This chart compares the performance of ARM and MSI 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 MSI 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 premium P/E of 170.26, while MSI at 34.79 remains within a more conventional earnings multiple.
| Symbol | ARM | MSI |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 170.26 | 34.79 |
| Forward PEG Ratio (TTM) | 6.09 | 4.13 |
| Price-to-Sales Ratio (P/S, TTM) | 37.33 | 6.50 |
| Price-to-Book Ratio (P/B, TTM) | 21.38 | 43.37 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 220.26 | 31.34 |
| EV-to-EBITDA (TTM) | 221.33 | 24.12 |
| EV-to-Sales (TTM) | 36.85 | 6.95 |
| EV-to-Free Cash Flow (TTM) | 217.45 | 33.53 |
Dividend Comparison
ARM offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while MSI provides a 0.97% dividend yield, giving investors a steady income stream.
| Symbol | ARM | MSI |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.97% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ARM and MSI, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- MSI is highly leveraged (debt-to-equity ratio 3.98), elevating both potential gains and risks, compared to ARM at 0.04, which maintains a steadier capital structure.
- ARM shows “--” for interest coverage, hinting at negligible interest costs, whereas MSI (at 11.80) covers its interest obligations.
| Symbol | ARM | MSI |
|---|---|---|
| Current Ratio (TTM) | 4.96 | 1.20 |
| Quick Ratio (TTM) | 4.96 | 1.03 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 3.98 |
| Debt-to-Assets Ratio (TTM) | 0.03 | 0.45 |
| Interest Coverage Ratio (TTM) | -- | 11.80 |