ARM vs. RGTI: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARM and RGTI, comparing key factors like performance, valuation metrics, dividends, and financial strength.
Company Overview
ARM’s market capitalization of 143.28 billion USD is substantially larger than RGTI’s 3.33 billion USD, indicating a significant difference in their market valuations.
RGTI carries a higher beta at 1.51, indicating it’s more sensitive to market moves, while ARM (beta: 0.27) exhibits greater stability.
ARM trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, RGTI is a standard domestic listing.
| Symbol | ARM | RGTI |
|---|---|---|
| Company Name | Arm Holdings plc American Depositary Shares | Rigetti Computing, Inc. |
| Country | GB | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Computer Hardware |
| CEO | Mr. Rene Anthony Andrada Haas | Dr. Subodh K. Kulkarni Ph.D. |
| Price | 135.55 USD | 11.4 USD |
| Market Cap | 143.28 billion USD | 3.33 billion USD |
| Beta | 0.27 | 1.51 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | September 14, 2023 | April 22, 2021 |
| ADR | Yes | No |
Performance Comparison
This chart compares the performance of ARM and RGTI over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
- ARM: $8456.55 (-15.43%)
- RGTI: $109615.38 (996.15%)
Valuation Metrics Comparison
This section compares the market valuation of ARM and RGTI. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.
- ARM’s Price-to-Earnings (P/E) ratio of 180.56 is very high, indicating its stock trades at a significant premium to its earnings, possibly due to strong investor sentiment or high growth expectations. RGTI’s P/E ratio of -23.59 is negative, signaling it is currently unprofitable.
- ARM’s Forward PEG ratio of 6.77 and RGTI’s Forward PEG ratio of 2.79 are both considered very high. For ARM, this elevated ratio implies its stock price may incorporate highly optimistic growth assumptions that could be challenging to realize. RGTI’s very high PEG also suggests its valuation is quite rich relative to its expected earnings growth, potentially indicating overvaluation.
- ARM’s Price-to-Book (P/B) ratio of 20.91 and RGTI’s P/B ratio of 15.67 are both very high. For ARM, this typically means the market assigns a much greater value to the company than its net accounting worth, often due to factors like robust intangible assets or superior growth prospects. RGTI’s high P/B also suggests investors have high expectations for its future performance and are pricing it well above its book value.
| Symbol | ARM | RGTI |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 180.56 | -23.59 |
| Forward PEG Ratio (TTM) | 6.77 | 2.79 |
| Price-to-Sales Ratio (P/S, TTM) | 35.76 | 361.98 |
| Price-to-Book Ratio (P/B, TTM) | 20.91 | 15.67 |
| EV-to-EBITDA (TTM) | 189.23 | -16.99 |
| EV-to-Sales (TTM) | 35.33 | 358.86 |
Dividend Comparison
Neither ARM nor RGTI currently pays a dividend; this often suggests they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.
| Symbol | ARM | RGTI |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
Financial Strength Metrics Comparison
Explore the financial strength details for ARM and RGTI in the table below.
| Symbol | ARM | RGTI |
|---|---|---|
| Current Ratio (TTM) | 5.20 | 18.82 |
| Quick Ratio (TTM) | 5.20 | 18.82 |
| Debt-to-Equity Ratio (TTM) | 0.05 | 0.04 |
| Debt-to-Asset Ratio (TTM) | 0.04 | 0.03 |
| Net Debt-to-EBITDA Ratio (TTM) | -2.31 | 0.15 |
| Interest Coverage Ratio (TTM) | -- | -34.24 |