ARM vs. SONY: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARM and SONY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ARM’s market capitalization stands at 163.93 billion USD, while SONY’s is 154.12 billion USD, indicating their market valuations are broadly comparable.
ARM’s beta of 4.10 points to significantly higher volatility compared to SONY (beta: 0.77), suggesting ARM has greater potential for both gains and losses relative to market movements.
ARM and SONY are both American Depositary Receipts (ADRs). This provides U.S. investors with straightforward access to investing in these foreign-listed companies without directly engaging with overseas stock exchanges.
| Symbol | ARM | SONY |
|---|---|---|
| Company Name | Arm Holdings plc American Depositary Shares | Sony Group Corporation |
| Country | GB | JP |
| Sector | Technology | Technology |
| Industry | Semiconductors | Consumer Electronics |
| CEO | Rene Anthony Andrada Haas | Hiroki Totoki |
| Price | 155.09 USD | 25.58 USD |
| Market Cap | 163.93 billion USD | 154.12 billion USD |
| Beta | 4.10 | 0.77 |
| Exchange | NASDAQ | NYSE |
| IPO Date | September 14, 2023 | December 1, 1958 |
| ADR | Yes | Yes |
Historical Performance
This chart compares the performance of ARM and SONY 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.
SONY
14.30%
Consumer Electronics Industry
- Max
- 14.30%
- Q3
- 14.30%
- Median
- 5.13%
- Q1
- -15.88%
- Min
- -27.23%
SONY’s Return on Equity of 14.30% is on par with the norm for the Consumer Electronics 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.
SONY
4.18%
Consumer Electronics Industry
- Max
- 4.18%
- Q3
- 4.18%
- Median
- 4.09%
- Q1
- -0.34%
- Min
- -0.34%
SONY’s Return on Invested Capital of 4.18% is in line with the norm for the Consumer Electronics industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
SONY
8.81%
Consumer Electronics Industry
- Max
- 24.30%
- Q3
- 8.81%
- Median
- 8.10%
- Q1
- -4.74%
- Min
- -7.22%
SONY’s Net Profit Margin of 8.81% is aligned with the median group of its peers in the Consumer Electronics industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
SONY
10.95%
Consumer Electronics Industry
- Max
- 31.81%
- Q3
- 16.77%
- Median
- 10.95%
- Q1
- -0.21%
- Min
- -4.78%
SONY’s Operating Profit Margin of 10.95% is around the midpoint for the Consumer Electronics industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ARM | SONY |
|---|---|---|
| Return on Equity (TTM) | 12.71% | 14.30% |
| Return on Assets (TTM) | 8.87% | 3.23% |
| Return on Invested Capital (TTM) | 11.37% | 4.18% |
| Net Profit Margin (TTM) | 19.77% | 8.81% |
| Operating Profit Margin (TTM) | 20.74% | 10.95% |
| Gross Profit Margin (TTM) | 95.83% | 28.27% |
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.
SONY
0.70
Consumer Electronics Industry
- Max
- 0.82
- Q3
- 0.82
- Median
- 0.70
- Q1
- 0.64
- Min
- 0.63
SONY’s Current Ratio of 0.70 aligns with the median group of the Consumer Electronics industry, indicating that its short-term liquidity is in line with its sector peers.
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.
SONY
0.51
Consumer Electronics Industry
- Max
- 2.23
- Q3
- 1.47
- Median
- 0.80
- Q1
- 0.51
- Min
- 0.16
SONY’s Debt-to-Equity Ratio of 0.51 is typical for the Consumer Electronics industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
SONY
14.74
Consumer Electronics Industry
- Max
- 14.74
- Q3
- 8.73
- Median
- 3.32
- Q1
- -40.43
- Min
- -114.16
SONY’s Interest Coverage Ratio of 14.74 is in the upper quartile for the Consumer Electronics industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ARM | SONY |
|---|---|---|
| Current Ratio (TTM) | 5.20 | 0.70 |
| Quick Ratio (TTM) | 5.20 | 0.57 |
| Debt-to-Equity Ratio (TTM) | 0.05 | 0.51 |
| Debt-to-Asset Ratio (TTM) | 0.04 | 0.12 |
| Net Debt-to-EBITDA Ratio (TTM) | -2.31 | 0.50 |
| Interest Coverage Ratio (TTM) | -- | 14.74 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARM and SONY. 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.
SONY
0.54%
Consumer Electronics Industry
- Max
- 1.88%
- Q3
- 0.53%
- Median
- 0.50%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.54%, SONY offers a more attractive income stream than most of its peers in the Consumer Electronics industry, signaling a strong commitment to shareholder returns.
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.
SONY
10.10%
Consumer Electronics Industry
- Max
- 98.30%
- Q3
- 15.74%
- Median
- 10.10%
- Q1
- 0.00%
- Min
- 0.00%
SONY’s Dividend Payout Ratio of 10.10% is within the typical range for the Consumer Electronics industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ARM | SONY |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.54% |
| Dividend Payout Ratio (TTM) | 0.00% | 10.10% |
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.
SONY
19.47
Consumer Electronics Industry
- Max
- 51.71
- Q3
- 41.35
- Median
- 30.99
- Q1
- 25.46
- Min
- 19.94
SONY’s P/E Ratio of 19.47 is below the typical range for the Consumer Electronics industry. This may indicate that the stock is potentially undervalued, or it could reflect market concerns about the company’s future prospects.
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.
SONY
2.38
Consumer Electronics Industry
- Max
- 7.16
- Q3
- 5.62
- Median
- 3.99
- Q1
- 2.77
- Min
- 2.43
The Forward PEG Ratio is often not a primary valuation metric in the Consumer Electronics industry.
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.
SONY
1.71
Consumer Electronics Industry
- Max
- 7.50
- Q3
- 4.17
- Median
- 1.76
- Q1
- 0.88
- Min
- 0.16
SONY’s P/S Ratio of 1.71 aligns with the market consensus for the Consumer Electronics industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
SONY
2.72
Consumer Electronics Industry
- Max
- 3.36
- Q3
- 3.36
- Median
- 2.83
- Q1
- 2.78
- Min
- 2.78
SONY’s P/B Ratio of 2.72 is below the established floor for the Consumer Electronics industry. This may signal that the market is deeply pessimistic or has overlooked the company, potentially offering its asset base at a significant discount.
Valuation at a Glance
| Symbol | ARM | SONY |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 206.59 | 19.47 |
| Forward PEG Ratio (TTM) | 7.75 | 2.38 |
| Price-to-Sales Ratio (P/S, TTM) | 40.91 | 1.71 |
| Price-to-Book Ratio (P/B, TTM) | 23.92 | 2.72 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 1011.91 | 7.91 |
| EV-to-EBITDA (TTM) | 216.85 | 9.67 |
| EV-to-Sales (TTM) | 40.48 | 1.81 |