ARM vs. MSTR: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARM and MSTR, 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
With ARM at 137.89 billion USD and MSTR at 110.10 billion USD, their market capitalizations sit in the same ballpark.
With betas of 4.41 for ARM and 3.81 for MSTR, both show similar volatility profiles relative to the overall market.
ARM trades as an ADR, giving U.S. investors a simple on-ramp to its foreign shares, while MSTR remains a standard domestic listing.
| Symbol | ARM | MSTR |
|---|---|---|
| Company Name | Arm Holdings plc American Depositary Shares | MicroStrategy Incorporated |
| Country | GB | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Software - Application |
| CEO | Mr. Rene Anthony Andrada Haas | Mr. Phong Q. Le |
| Price | 130.45 USD | 402.69 USD |
| Market Cap | 137.89 billion USD | 110.10 billion USD |
| Beta | 4.41 | 3.81 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | September 14, 2023 | June 11, 1998 |
| ADR | Yes | No |
Performance Comparison
This chart compares the performance of ARM and MSTR 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 MSTR 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 MSTR’s negative P/E of -19.34 driven by recent losses.
- MSTR reports a negative Price-to-Free Cash Flow ratio of -5.36, showing a cash flow shortfall that could threaten its operational sustainability, while ARM at 220.26 maintains positive cash flow.
| Symbol | ARM | MSTR |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 170.26 | -19.34 |
| Forward PEG Ratio (TTM) | 6.09 | 0.07 |
| Price-to-Sales Ratio (P/S, TTM) | 37.33 | 239.72 |
| Price-to-Book Ratio (P/B, TTM) | 21.38 | 79.17 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 220.26 | -5.36 |
| EV-to-EBITDA (TTM) | 221.33 | -14.54 |
| EV-to-Sales (TTM) | 36.85 | 239.82 |
| EV-to-Free Cash Flow (TTM) | 217.45 | -5.37 |
Dividend Comparison
Neither ARM nor MSTR currently pays a dividend yield; this often indicates they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.
| Symbol | ARM | MSTR |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ARM and MSTR, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- MSTR’s current ratio of 0.66 indicates its assets may not cover near-term debts, whereas ARM at 4.96 maintains healthy liquidity.
- MSTR posts a quick ratio of 0.66, indicating limited coverage of short-term debts from its most liquid assets—while ARM at 4.96 enjoys stronger liquidity resilience.
- ARM shows “--” (minimal interest expense), but MSTR is in the red with interest coverage -229.74, signaling a net operating loss.
| Symbol | ARM | MSTR |
|---|---|---|
| Current Ratio (TTM) | 4.96 | 0.66 |
| Quick Ratio (TTM) | 4.96 | 0.66 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 0.08 |
| Debt-to-Assets Ratio (TTM) | 0.03 | 0.00 |
| Interest Coverage Ratio (TTM) | -- | -229.74 |