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

Updated

Here’s a clear look at ARM and SNOW, 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

ARM dominates in value with a market cap of 137.89 billion USD, eclipsing SNOW’s 59.76 billion USD by roughly 2.31×.

ARM’s beta of 4.41 points to much larger expected swings compared to SNOW’s calmer 1.11, suggesting both higher upside and downside potential.

ARM trades as an ADR, giving U.S. investors a simple on-ramp to its foreign shares, while SNOW remains a standard domestic listing.

SymbolARMSNOW
Company NameArm Holdings plc American Depositary SharesSnowflake Inc.
CountryGBUS
SectorTechnologyTechnology
IndustrySemiconductorsSoftware - Application
CEOMr. Rene Anthony Andrada HaasMr. Sridhar Ramaswamy Ph.D.
Price130.45 USD179.12 USD
Market Cap137.89 billion USD59.76 billion USD
Beta4.411.11
ExchangeNASDAQNYSE
IPO DateSeptember 14, 2023September 16, 2020
ADRYesNo

Performance Comparison

This chart compares the performance of ARM and SNOW 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 SNOW 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 SNOW’s negative P/E of -46.18 driven by recent losses.
  • SNOW shows a negative forward PEG of -1.25, signaling expected earnings contraction, while ARM at 6.09 maintains analysts’ projections for stable or improved profits.
SymbolARMSNOW
Price-to-Earnings Ratio (P/E, TTM)170.26-46.18
Forward PEG Ratio (TTM)6.09-1.25
Price-to-Sales Ratio (P/S, TTM)37.3316.48
Price-to-Book Ratio (P/B, TTM)21.3819.25
Price-to-Free Cash Flow Ratio (P/FCF, TTM)220.2666.40
EV-to-EBITDA (TTM)221.33-45.85
EV-to-Sales (TTM)36.8516.50
EV-to-Free Cash Flow (TTM)217.4566.46

Dividend Comparison

Neither ARM nor SNOW currently pays a dividend yield; this often indicates they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.

SymbolARMSNOW
Dividend Yield (TTM)0.00%0.00%

Financial Strength Metrics Comparison

This section dives into the financial resilience of ARM and SNOW, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • ARM shows “--” (minimal interest expense), but SNOW is in the red with interest coverage -1054.32, signaling a net operating loss.
SymbolARMSNOW
Current Ratio (TTM)4.961.78
Quick Ratio (TTM)4.961.78
Debt-to-Equity Ratio (TTM)0.040.87
Debt-to-Assets Ratio (TTM)0.030.30
Interest Coverage Ratio (TTM)---1054.32