ARM vs. ORCL: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARM and ORCL, 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
ORCL towers over ARM with a market cap of 440.77 billion USD, roughly 3.20 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 ORCL’s steadier 1.28.
Worth noting: ARM flies the ADR flag, tying it to a foreign outfit on U.S. soil, while ORCL sticks to plain-vanilla U.S. listing.
| Symbol | ARM | ORCL |
|---|---|---|
| Company Name | Arm Holdings plc American Depositary Shares | Oracle Corporation |
| Country | GB | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Software - Infrastructure |
| CEO | Mr. Rene Anthony Andrada Haas | Ms. Safra Ada Catz |
| Price | 130.45 USD | 157.18 USD |
| Market Cap | 137.89 billion USD | 440.77 billion USD |
| Beta | 4.407467 | 1.276 |
| Exchange | NASDAQ | NYSE |
| IPO Date | September 14, 2023 | March 12, 1986 |
| ADR | Yes | No |
Performance Comparison
This chart compares the performance of ARM and ORCL 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 ORCL 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, ORCL at 37.21 aligns with more typical earnings multiples.
| Symbol | ARM | ORCL |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 170.26 | 37.21 |
| Forward PEG Ratio (TTM) | 6.09 | 1.58 |
| Price-to-Sales Ratio (P/S, TTM) | 37.33 | 7.90 |
| Price-to-Book Ratio (P/B, TTM) | 21.38 | 27.04 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 220.26 | 75.84 |
| EV-to-EBITDA (TTM) | 221.33 | 21.91 |
| EV-to-Sales (TTM) | 36.85 | 9.32 |
| EV-to-Free Cash Flow (TTM) | 217.45 | 89.41 |
Dividend Comparison
ARM pays no dividends, focusing all profits on growth, appealing to capital-gains investors. Meanwhile, ORCL’s 1.08% yield rewards shareholders, showing financial confidence while supporting objectives—a contrast to ARM’s growth-only approach.
| Symbol | ARM | ORCL |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.08% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ARM and ORCL, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- ORCL’s 5.75 D/E breaches 3.0, loading up on debt that could test its resilience. In contrast, ARM at 0.04 plays it closer to the vest with borrowing.
- ARM posts an interest coverage of “--”, hinting at interest costs so low they’re negligible—often from scant debt or dirt-cheap rates—while ORCL at 6.75 handles interest with solid earnings.
| Symbol | ARM | ORCL |
|---|---|---|
| Current Ratio (TTM) | 4.96 | 1.02 |
| Quick Ratio (TTM) | 4.96 | 1.02 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 5.75 |
| Debt-to-Assets Ratio (TTM) | 0.03 | 0.60 |
| Interest Coverage Ratio (TTM) | -- | 6.75 |