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

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Here’s a clear look at ARM and SONY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

Both ARM and SONY are American Depositary Receipts (ADRs). This provides U.S. investors with straightforward access to investing in these foreign-listed companies.

SymbolARMSONY
Company NameArm Holdings plcSony Group Corporation
CountryUnited KingdomJapan
GICS SectorInformation TechnologyConsumer Discretionary
GICS IndustrySemiconductors & Semiconductor EquipmentHousehold Durables
Market Capitalization138.93 billion USD168.52 billion USD
ExchangeNasdaqGSNYSE
Listing DateSeptember 14, 2023February 21, 1973
Security TypeADRADR

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.

ARM vs. SONY: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolARMSONY
5-Day Price Return-5.36%0.92%
13-Week Price Return-1.43%15.46%
26-Week Price Return-13.77%19.67%
52-Week Price Return2.85%13.72%
Month-to-Date Return-5.21%13.20%
Year-to-Date Return8.63%23.72%
10-Day Avg. Volume4.00M18.73M
3-Month Avg. Volume5.00M14.80M
3-Month Volatility46.58%31.61%
Beta2.731.33

Profitability

Return on Equity (TTM)

ARM

10.64%

Semiconductors & Semiconductor Equipment Industry

Max
52.74%
Q3
23.49%
Median
11.60%
Q1
3.23%
Min
-20.69%

ARM’s Return on Equity of 10.64% is on par with the norm for the Semiconductors & Semiconductor Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

SONY

14.17%

Household Durables Industry

Max
26.99%
Q3
17.28%
Median
12.66%
Q1
7.34%
Min
0.07%

SONY’s Return on Equity of 14.17% is on par with the norm for the Household Durables industry, indicating its profitability relative to shareholder equity is typical for the sector.

ARM vs. SONY: A comparison of their Return on Equity (TTM) against their respective Semiconductors & Semiconductor Equipment and Household Durables industry benchmarks.

Net Profit Margin (TTM)

ARM

16.96%

Semiconductors & Semiconductor Equipment Industry

Max
44.17%
Q3
22.38%
Median
11.95%
Q1
3.21%
Min
-25.16%

ARM’s Net Profit Margin of 16.96% is aligned with the median group of its peers in the Semiconductors & Semiconductor Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.

SONY

9.13%

Household Durables Industry

Max
15.50%
Q3
8.99%
Median
6.57%
Q1
4.33%
Min
-0.49%

A Net Profit Margin of 9.13% places SONY in the upper quartile for the Household Durables industry, signifying strong profitability and more effective cost management than most of its peers.

ARM vs. SONY: A comparison of their Net Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and Household Durables industry benchmarks.

Operating Profit Margin (TTM)

ARM

18.51%

Semiconductors & Semiconductor Equipment Industry

Max
58.03%
Q3
27.84%
Median
12.45%
Q1
5.15%
Min
-28.61%

ARM’s Operating Profit Margin of 18.51% is around the midpoint for the Semiconductors & Semiconductor Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

SONY

11.68%

Household Durables Industry

Max
20.22%
Q3
12.29%
Median
9.54%
Q1
6.30%
Min
-1.92%

SONY’s Operating Profit Margin of 11.68% is around the midpoint for the Household Durables industry, indicating that its efficiency in managing core business operations is typical for the sector.

ARM vs. SONY: A comparison of their Operating Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and Household Durables industry benchmarks.

Profitability at a Glance

SymbolARMSONY
Return on Equity (TTM)10.64%14.17%
Return on Assets (TTM)8.01%3.26%
Net Profit Margin (TTM)16.96%9.13%
Operating Profit Margin (TTM)18.51%11.68%
Gross Profit Margin (TTM)97.14%31.29%

Financial Strength

Current Ratio (MRQ)

ARM

4.99

Semiconductors & Semiconductor Equipment Industry

Max
8.42
Q3
4.70
Median
2.75
Q1
2.07
Min
1.04

ARM’s Current Ratio of 4.99 is in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

SONY

1.09

Household Durables Industry

Max
9.23
Q3
4.50
Median
2.35
Q1
1.29
Min
0.70

SONY’s Current Ratio of 1.09 falls into the lower quartile for the Household Durables industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ARM vs. SONY: A comparison of their Current Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Household Durables industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ARM

0.00

Semiconductors & Semiconductor Equipment Industry

Max
1.09
Q3
0.45
Median
0.22
Q1
0.01
Min
0.00

Falling into the lower quartile for the Semiconductors & Semiconductor Equipment industry, ARM’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.

SONY

0.19

Household Durables Industry

Max
1.84
Q3
0.90
Median
0.34
Q1
0.19
Min
0.00

SONY’s Debt-to-Equity Ratio of 0.19 is typical for the Household Durables industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ARM vs. SONY: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Household Durables industry benchmarks.

Interest Coverage Ratio (TTM)

ARM

6.95

Semiconductors & Semiconductor Equipment Industry

Max
174.00
Q3
81.10
Median
27.22
Q1
7.28
Min
-4.26

In the lower quartile for the Semiconductors & Semiconductor Equipment industry, ARM’s Interest Coverage Ratio of 6.95 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

SONY

104.18

Household Durables Industry

Max
140.40
Q3
77.14
Median
24.53
Q1
5.69
Min
-17.01

SONY’s Interest Coverage Ratio of 104.18 is in the upper quartile for the Household Durables industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ARM vs. SONY: A comparison of their Interest Coverage Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Household Durables industry benchmarks.

Financial Strength at a Glance

SymbolARMSONY
Current Ratio (MRQ)4.991.09
Quick Ratio (MRQ)4.771.03
Debt-to-Equity Ratio (MRQ)0.000.19
Interest Coverage Ratio (TTM)6.95104.18

Growth

Revenue Growth

ARM vs. SONY: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ARM vs. SONY: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ARM

0.00%

Semiconductors & Semiconductor Equipment Industry

Max
4.16%
Q3
1.78%
Median
0.74%
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

0.47%

Household Durables Industry

Max
8.95%
Q3
4.19%
Median
1.88%
Q1
0.03%
Min
0.00%

SONY’s Dividend Yield of 0.47% is consistent with its peers in the Household Durables industry, providing a dividend return that is standard for its sector.

ARM vs. SONY: A comparison of their Dividend Yield (TTM) against their respective Semiconductors & Semiconductor Equipment and Household Durables industry benchmarks.

Dividend Payout Ratio (TTM)

ARM

0.00%

Semiconductors & Semiconductor Equipment Industry

Max
196.12%
Q3
87.72%
Median
26.57%
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

10.52%

Household Durables Industry

Max
125.12%
Q3
62.43%
Median
39.18%
Q1
5.55%
Min
0.00%

SONY’s Dividend Payout Ratio of 10.52% is within the typical range for the Household Durables industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ARM vs. SONY: A comparison of their Dividend Payout Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Household Durables industry benchmarks.

Dividend at a Glance

SymbolARMSONY
Dividend Yield (TTM)0.00%0.47%
Dividend Payout Ratio (TTM)0.00%10.52%

Valuation

Price-to-Earnings Ratio (TTM)

ARM

203.03

Semiconductors & Semiconductor Equipment Industry

Max
109.37
Q3
57.11
Median
28.95
Q1
22.13
Min
11.14

At 203.03, ARM’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors & Semiconductor Equipment 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

22.21

Household Durables Industry

Max
29.75
Q3
18.88
Median
13.25
Q1
9.26
Min
6.32

A P/E Ratio of 22.21 places SONY in the upper quartile for the Household Durables industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

ARM vs. SONY: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Household Durables industry benchmarks.

Price-to-Sales Ratio (TTM)

ARM

34.44

Semiconductors & Semiconductor Equipment Industry

Max
16.09
Q3
10.10
Median
4.82
Q1
2.60
Min
0.93

With a P/S Ratio of 34.44, ARM trades at a valuation that eclipses even the highest in the Semiconductors & Semiconductor Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

SONY

2.03

Household Durables Industry

Max
2.12
Q3
1.21
Median
0.83
Q1
0.51
Min
0.18

SONY’s P/S Ratio of 2.03 is in the upper echelon for the Household Durables industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

ARM vs. SONY: A comparison of their Price-to-Sales Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Household Durables industry benchmarks.

Price-to-Book Ratio (MRQ)

ARM

24.45

Semiconductors & Semiconductor Equipment Industry

Max
13.56
Q3
6.75
Median
3.68
Q1
1.89
Min
0.60

At 24.45, ARM’s P/B Ratio is at an extreme premium to the Semiconductors & Semiconductor Equipment 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

2.77

Household Durables Industry

Max
4.21
Q3
2.29
Median
1.34
Q1
0.98
Min
0.59

SONY’s P/B Ratio of 2.77 is in the upper tier for the Household Durables industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

ARM vs. SONY: A comparison of their Price-to-Book Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Household Durables industry benchmarks.

Valuation at a Glance

SymbolARMSONY
Price-to-Earnings Ratio (TTM)203.0322.21
Price-to-Sales Ratio (TTM)34.442.03
Price-to-Book Ratio (MRQ)24.452.77
Price-to-Free Cash Flow Ratio (TTM)199.6012.66