ARM vs. QXO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARM and QXO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ARM’s market capitalization of 163.93 billion USD is substantially larger than QXO’s 12.71 billion USD, indicating a significant difference in their market valuations.
ARM’s beta of 4.10 points to significantly higher volatility compared to QXO (beta: 2.34), suggesting ARM has greater potential for both gains and losses relative to market movements.
ARM trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, QXO is a standard domestic listing.
| Symbol | ARM | QXO |
|---|---|---|
| Company Name | Arm Holdings plc American Depositary Shares | QXO Inc |
| Country | GB | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Software - Application |
| CEO | Rene Anthony Andrada Haas | Bradley S. Jacobs |
| Price | 155.09 USD | 21.98 USD |
| Market Cap | 163.93 billion USD | 12.71 billion USD |
| Beta | 4.10 | 2.34 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | September 14, 2023 | April 17, 2012 |
| ADR | Yes | No |
Historical Performance
This chart compares the performance of ARM and QXO 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.
Profitability
Return on Equity
ARM
12.71%
Semiconductors Industry
- Max
- 41.84%
- Q3
- 15.81%
- Median
- 6.31%
- Q1
- -5.54%
- Min
- -30.12%
ARM’s Return on Equity of 12.71% is on par with the norm for the Semiconductors industry, indicating its profitability relative to shareholder equity is typical for the sector.
QXO
0.91%
Software - Application Industry
- Max
- 59.01%
- Q3
- 17.85%
- Median
- 4.73%
- Q1
- -10.56%
- Min
- -52.94%
QXO’s Return on Equity of 0.91% is on par with the norm for the Software - Application industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
ARM
11.37%
Semiconductors Industry
- Max
- 30.91%
- Q3
- 11.34%
- Median
- 4.08%
- Q1
- -2.17%
- Min
- -19.59%
In the upper quartile for the Semiconductors industry, ARM’s Return on Invested Capital of 11.37% signifies a highly effective use of its capital to generate profits when compared to its peers.
QXO
-1.18%
Software - Application Industry
- Max
- 35.07%
- Q3
- 9.72%
- Median
- 0.76%
- Q1
- -8.68%
- Min
- -34.12%
QXO has a negative Return on Invested Capital of -1.18%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
Net Profit Margin
ARM
19.77%
Semiconductors Industry
- Max
- 51.69%
- Q3
- 19.67%
- Median
- 8.56%
- Q1
- -5.44%
- Min
- -38.60%
A Net Profit Margin of 19.77% places ARM in the upper quartile for the Semiconductors industry, signifying strong profitability and more effective cost management than most of its peers.
QXO
65.39%
Software - Application Industry
- Max
- 48.14%
- Q3
- 16.07%
- Median
- 1.83%
- Q1
- -9.60%
- Min
- -45.64%
QXO’s Net Profit Margin of 65.39% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin
ARM
20.74%
Semiconductors Industry
- Max
- 58.03%
- Q3
- 22.12%
- Median
- 8.40%
- Q1
- -3.73%
- Min
- -36.14%
ARM’s Operating Profit Margin of 20.74% is around the midpoint for the Semiconductors industry, indicating that its efficiency in managing core business operations is typical for the sector.
QXO
-197.54%
Software - Application Industry
- Max
- 51.67%
- Q3
- 15.35%
- Median
- 1.79%
- Q1
- -12.42%
- Min
- -45.17%
QXO has a negative Operating Profit Margin of -197.54%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | ARM | QXO |
|---|---|---|
| Return on Equity (TTM) | 12.71% | 0.91% |
| Return on Assets (TTM) | 8.87% | 0.72% |
| Return on Invested Capital (TTM) | 11.37% | -1.18% |
| Net Profit Margin (TTM) | 19.77% | 65.39% |
| Operating Profit Margin (TTM) | 20.74% | -197.54% |
| Gross Profit Margin (TTM) | 95.83% | 40.51% |
Financial Strength
Current Ratio
ARM
5.20
Semiconductors Industry
- Max
- 9.10
- Q3
- 5.23
- Median
- 3.09
- Q1
- 2.49
- Min
- 1.02
ARM’s Current Ratio of 5.20 aligns with the median group of the Semiconductors industry, indicating that its short-term liquidity is in line with its sector peers.
QXO
95.23
Software - Application Industry
- Max
- 5.09
- Q3
- 2.84
- Median
- 1.70
- Q1
- 1.12
- Min
- 0.04
QXO’s Current Ratio of 95.23 is exceptionally high, placing it well outside the typical range for the Software - Application industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
Debt-to-Equity Ratio
ARM
0.05
Semiconductors Industry
- Max
- 0.97
- Q3
- 0.46
- Median
- 0.21
- Q1
- 0.05
- Min
- 0.00
ARM’s Debt-to-Equity Ratio of 0.05 is typical for the Semiconductors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
QXO
0.00
Software - Application Industry
- Max
- 1.85
- Q3
- 0.77
- Median
- 0.18
- Q1
- 0.05
- Min
- 0.00
Falling into the lower quartile for the Software - Application industry, QXO’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.
Interest Coverage Ratio
ARM
--
Semiconductors Industry
- Max
- 36.25
- Q3
- 29.12
- Median
- 7.01
- Q1
- -1.22
- Min
- -18.18
Interest Coverage Ratio data for ARM is currently unavailable.
QXO
-18,419.00
Software - Application Industry
- Max
- 39.23
- Q3
- 8.55
- Median
- 1.48
- Q1
- -14.59
- Min
- -39.97
QXO has a negative Interest Coverage Ratio of -18,419.00. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | ARM | QXO |
|---|---|---|
| Current Ratio (TTM) | 5.20 | 95.23 |
| Quick Ratio (TTM) | 5.20 | 95.23 |
| Debt-to-Equity Ratio (TTM) | 0.05 | 0.00 |
| Debt-to-Asset Ratio (TTM) | 0.04 | 0.00 |
| Net Debt-to-EBITDA Ratio (TTM) | -2.31 | -73.63 |
| Interest Coverage Ratio (TTM) | -- | -18419.00 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARM and QXO. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ARM
0.00%
Semiconductors Industry
- Max
- 6.48%
- Q3
- 0.93%
- Median
- 0.00%
- 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.
QXO
0.00%
Software - Application Industry
- Max
- 3.66%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
QXO 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.
Dividend Payout Ratio
ARM
0.00%
Semiconductors Industry
- Max
- 204.29%
- Q3
- 31.85%
- Median
- 0.00%
- 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.
QXO
197.21%
Software - Application Industry
- Max
- 81.09%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
QXO’s Dividend Payout Ratio of 197.21% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | ARM | QXO |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 197.21% |
Valuation
Price-to-Earnings Ratio
ARM
206.59
Semiconductors Industry
- Max
- 86.15
- Q3
- 47.38
- Median
- 27.87
- Q1
- 18.89
- Min
- 4.73
At 206.59, ARM’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
QXO
271.22
Software - Application Industry
- Max
- 194.31
- Q3
- 98.56
- Median
- 51.87
- Q1
- 22.76
- Min
- 1.02
At 271.22, QXO’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Software - Application industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
ARM
7.75
Semiconductors Industry
- Max
- 4.73
- Q3
- 2.80
- Median
- 1.11
- Q1
- 0.68
- Min
- 0.01
The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.
QXO
246.79
Software - Application Industry
- Max
- 15.44
- Q3
- 6.57
- Median
- 2.78
- Q1
- 0.55
- Min
- 0.00
QXO’s Forward PEG Ratio of 246.79 is exceptionally high for the Software - Application industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
Price-to-Sales Ratio
ARM
40.91
Semiconductors Industry
- Max
- 21.96
- Q3
- 10.21
- Median
- 4.45
- Q1
- 2.32
- Min
- 0.48
With a P/S Ratio of 40.91, ARM trades at a valuation that eclipses even the highest in the Semiconductors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
QXO
227.19
Software - Application Industry
- Max
- 23.49
- Q3
- 11.14
- Median
- 5.62
- Q1
- 2.84
- Min
- 0.33
With a P/S Ratio of 227.19, QXO trades at a valuation that eclipses even the highest in the Software - Application industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio
ARM
23.92
Semiconductors Industry
- Max
- 13.12
- Q3
- 6.49
- Median
- 3.31
- Q1
- 1.74
- Min
- 0.23
At 23.92, ARM’s P/B Ratio is at an extreme premium to the Semiconductors 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.
QXO
1.96
Software - Application Industry
- Max
- 21.03
- Q3
- 10.49
- Median
- 6.36
- Q1
- 2.89
- Min
- 0.12
The P/B Ratio is often not a primary valuation metric for the Software - Application industry.
Valuation at a Glance
| Symbol | ARM | QXO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 206.59 | 271.22 |
| Forward PEG Ratio (TTM) | 7.75 | 246.79 |
| Price-to-Sales Ratio (P/S, TTM) | 40.91 | 227.19 |
| Price-to-Book Ratio (P/B, TTM) | 23.92 | 1.96 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 1011.91 | 105.76 |
| EV-to-EBITDA (TTM) | 216.85 | 110.55 |
| EV-to-Sales (TTM) | 40.48 | 136.37 |