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

Updated on August 22, 2025

Here’s a clear look at ARM and NTES, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

Both ARM and NTES are American Depositary Receipts (ADRs). This provides U.S. investors with straightforward access to investing in these foreign-listed companies.

Symbol	ARM	NTES
Company Name	Arm Holdings plc	NetEase, Inc.
Country	United Kingdom	China
GICS Sector	Information Technology	Communication Services
GICS Industry	Semiconductors & Semiconductor Equipment	Entertainment
Market Capitalization	138.93 billion USD	83.01 billion USD
Exchange	NasdaqGS	NasdaqGS
Listing Date	September 14, 2023	June 30, 2000
Security Type	ADR	ADR

Historical Performance

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

Historical Performance at a Glance

Symbol	ARM	NTES
5-Day Price Return	-5.36%	0.66%
13-Week Price Return	-1.43%	9.59%
26-Week Price Return	-13.77%	24.53%
52-Week Price Return	2.85%	41.03%
Month-to-Date Return	-5.21%	0.17%
Year-to-Date Return	8.63%	46.31%
10-Day Avg. Volume	4.00M	1.03M
3-Month Avg. Volume	5.00M	1.02M
3-Month Volatility	46.58%	24.86%
Beta	2.73	0.66

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.

NTES

24.25%

Entertainment Industry

Max: 42.50%
Q3: 22.75%
Median: 12.88%
Q1: 7.15%
Min: -6.84%

In the upper quartile for the Entertainment industry, NTES’s Return on Equity of 24.25% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

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

NTES

31.19%

Entertainment Industry

Max: 45.25%
Q3: 23.93%
Median: 14.60%
Q1: 4.89%
Min: -22.94%

A Net Profit Margin of 31.19% places NTES in the upper quartile for the Entertainment industry, signifying strong profitability and more effective cost management than most of its peers.

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

NTES

31.43%

Entertainment Industry

Max: 46.83%
Q3: 28.87%
Median: 15.26%
Q1: 8.95%
Min: -5.53%

An Operating Profit Margin of 31.43% places NTES in the upper quartile for the Entertainment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

Symbol	ARM	NTES
Return on Equity (TTM)	10.64%	24.25%
Return on Assets (TTM)	8.01%	17.31%
Net Profit Margin (TTM)	16.96%	31.19%
Operating Profit Margin (TTM)	18.51%	31.43%
Gross Profit Margin (TTM)	97.14%	63.17%

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.

NTES

3.23

Entertainment Industry

Max: 6.80
Q3: 3.77
Median: 1.87
Q1: 0.86
Min: 0.39

NTES’s Current Ratio of 3.23 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

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

NTES

0.08

Entertainment Industry

Max: 1.65
Q3: 0.71
Median: 0.14
Q1: 0.04
Min: 0.00

NTES’s Debt-to-Equity Ratio of 0.08 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

NTES

161.13

Entertainment Industry

Max: 62.11
Q3: 31.19
Median: 7.50
Q1: 2.02
Min: -6.33

With an Interest Coverage Ratio of 161.13, NTES demonstrates a superior capacity to service its debt, placing it well above the typical range for the Entertainment industry. This stems from either robust earnings or a conservative debt load.

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

Financial Strength at a Glance

Symbol	ARM	NTES
Current Ratio (MRQ)	4.99	3.23
Quick Ratio (MRQ)	4.77	3.10
Debt-to-Equity Ratio (MRQ)	0.00	0.08
Interest Coverage Ratio (TTM)	6.95	161.13

Growth

Revenue Growth

ARM vs. NTES: 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. NTES: 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.

NTES

2.18%

Entertainment Industry

Max: 2.54%
Q3: 1.29%
Median: 0.61%
Q1: 0.00%
Min: 0.00%

With a Dividend Yield of 2.18%, NTES offers a more attractive income stream than most of its peers in the Entertainment industry, signaling a strong commitment to shareholder returns.

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

NTES

36.90%

Entertainment Industry

Max: 82.30%
Q3: 45.76%
Median: 29.16%
Q1: 0.00%
Min: 0.00%

NTES’s Dividend Payout Ratio of 36.90% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

Symbol	ARM	NTES
Dividend Yield (TTM)	0.00%	2.18%
Dividend Payout Ratio (TTM)	0.00%	36.90%

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.

NTES

16.94

Entertainment Industry

Max: 53.51
Q3: 45.31
Median: 33.16
Q1: 18.21
Min: 3.89

In the lower quartile for the Entertainment industry, NTES’s P/E Ratio of 16.94 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

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

NTES

5.28

Entertainment Industry

Max: 12.81
Q3: 7.20
Median: 4.68
Q1: 3.32
Min: 0.79

NTES’s P/S Ratio of 5.28 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

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

NTES

4.09

Entertainment Industry

Max: 17.11
Q3: 8.38
Median: 5.24
Q1: 2.18
Min: 0.67

NTES’s P/B Ratio of 4.09 is within the conventional range for the Entertainment 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. NTES: A comparison of their Price-to-Book Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Entertainment industry benchmarks.

Valuation at a Glance

Symbol	ARM	NTES
Price-to-Earnings Ratio (TTM)	203.03	16.94
Price-to-Sales Ratio (TTM)	34.44	5.28
Price-to-Book Ratio (MRQ)	24.45	4.09
Price-to-Free Cash Flow Ratio (TTM)	199.60	13.09