ARM vs. STM: Arm Holdings vs. STMicroelectronics Stock Comparison

November 11, 2026

How do Arm Holdings (ARM) and STMicroelectronics (STM) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Arm Holdings (ARM) and STMicroelectronics (STM) are both classified in the Semiconductors sub-industry within the broader Semiconductors & Semiconductor Equipment industry, placing them in the closest GICS peer bucket.

STMicroelectronics (STM) has more than two decades of public-market history since December 8, 1994, whereas Arm Holdings (ARM) listed on September 14, 2023 and has a much shorter record to draw on.

Both Arm Holdings (ARM) and STMicroelectronics (STM) trade as ADRs — their core financials are comparable, but keep FX, depositary-program fees, and dividend withholding in view for each.

Company profile comparison for Arm Holdings (ARM) and STMicroelectronics (STM)
Profile Item	ARM	STM
Name	Arm Holdings plc ADR	STMicroelectronics N.V.
Country/Region	United Kingdom	Switzerland
GICS Sector	Information Technology	Information Technology
GICS Industry Group	Semiconductors & Semiconductor Equipment	Semiconductors & Semiconductor Equipment
GICS Industry	Semiconductors & Semiconductor Equipment	Semiconductors & Semiconductor Equipment
GICS Sub-Industry	Semiconductors	Semiconductors
Market Capitalization	186.84 billion USD	37.30 billion USD
Currency	USD	USD
Exchange	Nasdaq	NYSE
Listing Date	September 14, 2023	December 8, 1994
Security Type	ADR	ADR

Price Performance

Cumulative Growth

ARM

STM

GSPC

Arm Holdings (ARM) vs. STMicroelectronics (STM), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…

Trailing total returns for Arm Holdings (ARM) and STMicroelectronics (STM). Returns over one year are annualized.

Calendar-Year Returns

Loading price history…

Calendar-year total returns for Arm Holdings (ARM) and STMicroelectronics (STM). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Arm Holdings (ARM) and STMicroelectronics (STM)
Metric	ARM	STM
Total Return (1Y)	23.60%	90.64%
Total Return (3Y, Annualized)	53.99%	4.24%
Total Return (5Y, Annualized)	--	-1.95%

Risk Profile

Drawdown History

ARM

STM

GSPC

Arm Holdings (ARM) vs. STMicroelectronics (STM), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

Loading price history…

Distribution of monthly total returns for Arm Holdings (ARM) and STMicroelectronics (STM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Arm Holdings (ARM) and STMicroelectronics (STM)
Metric	ARM	STM
Volatility (1Y, Annualized)	82.24%	62.24%
Beta (5Y)	3.92	2.00
Max Drawdown (5Y)	-62.06%	-66.66%
Avg. Volume (3M)	5.05M	9.18M

Risk-Adjusted Performance

Risk-Return Positioning

ARM and STM are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Arm Holdings (ARM) and STMicroelectronics (STM)
Metric	ARM	STM
Sharpe Ratio (1Y)	0.23	1.39
Sortino Ratio (1Y)	0.38	2.07

Profitability

ROE (TTM)

Both Arm Holdings (ARM) at 11.35% and STMicroelectronics (STM) at 2.95% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

ARM

Semiconductors & Semiconductor Equipment industry group

11.35%

Max: 52.82%
Q3: 22.26%
ARM: 11.35%
Median: 10.58%
Q1: 1.29%
Min: -16.89%

STM

Semiconductors & Semiconductor Equipment industry group

2.95%

Max: 52.82%
Q3: 22.26%
Median: 10.58%
STM: 2.95%
Q1: 1.29%
Min: -16.89%

Arm Holdings (ARM) vs. STMicroelectronics (STM): A comparison of their ROE against the Semiconductors & Semiconductor Equipment industry group benchmark.

Net Margin (TTM)

Both Arm Holdings (ARM) at 17.13% and STMicroelectronics (STM) at 3.80% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

ARM

Semiconductors & Semiconductor Equipment industry group

17.13%

Max: 63.80%
Q3: 28.36%
ARM: 17.13%
Median: 11.44%
Q1: 0.90%
Min: -37.77%

STM

Semiconductors & Semiconductor Equipment industry group

3.80%

Max: 63.80%
Q3: 28.36%
Median: 11.44%
STM: 3.80%
Q1: 0.90%
Min: -37.77%

Arm Holdings (ARM) vs. STMicroelectronics (STM): A comparison of their net margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Operating Margin (TTM)

Both Arm Holdings (ARM) at 13.93% and STMicroelectronics (STM) at 11.10% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

ARM

Semiconductors & Semiconductor Equipment industry group

13.93%

Max: 58.66%
Q3: 30.23%
Median: 15.91%
ARM: 13.93%
Q1: 7.54%
Min: -25.74%

STM

Semiconductors & Semiconductor Equipment industry group

11.10%

Max: 58.66%
Q3: 30.23%
Median: 15.91%
STM: 11.10%
Q1: 7.54%
Min: -25.74%

Arm Holdings (ARM) vs. STMicroelectronics (STM): A comparison of their operating margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Profitability Metrics

Profitability metrics for Arm Holdings (ARM) and STMicroelectronics (STM)
Metric	ARM	STM
ROE (TTM)	11.35%	2.95%
ROA (TTM)	5.50%	2.63%
Net Margin (TTM)	17.13%	3.80%
Operating Margin (TTM)	13.93%	11.10%
Gross Margin (TTM)	97.44%	35.53%

Growth

Revenue Growth

Arm Holdings (ARM) at 22.79% is around its peer norm for revenue growth, while STMicroelectronics (STM) at -11.07% drops into the bottom quartile, signaling weaker demand or pricing momentum.

Arm Holdings (ARM) vs. STMicroelectronics (STM): A comparison of their Revenue Growth across different time periods.

EPS Growth

Arm Holdings (ARM) at 13.33% is around its peer norm for EPS growth, while STMicroelectronics (STM) at -89.16% drops into the bottom quartile, signaling weaker earnings momentum.

Arm Holdings (ARM) vs. STMicroelectronics (STM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Arm Holdings (ARM) and STMicroelectronics (STM)
Metric	ARM	STM
Revenue Growth (YoY)	22.79%	-11.07%
Revenue Growth (3Y CAGR)	22.46%	-9.89%
EPS Growth (YoY)	13.33%	-89.16%
EPS Growth (3Y CAGR)	18.51%	-66.39%

Financial Strength

Current Ratio (MRQ)

STMicroelectronics (STM) at 3.13 keeps current ratio within its industry’s typical mid-range, while Arm Holdings (ARM) at 6.35 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

ARM

Semiconductors & Semiconductor Equipment industry group

6.35

Max: 10.33
ARM: 6.35
Q3: 5.62
Median: 3.33
Q1: 2.35
Min: 1.03

STM

Semiconductors & Semiconductor Equipment industry group

3.13

Max: 10.33
Q3: 5.62
Median: 3.33
STM: 3.13
Q1: 2.35
Min: 1.03

Arm Holdings (ARM) vs. STMicroelectronics (STM): A comparison of their current ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Debt / Equity (MRQ)

Both Arm Holdings (ARM) at 0.06 and STMicroelectronics (STM) at 0.19 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

ARM

Semiconductors & Semiconductor Equipment industry group

0.06

Max: 1.46
Q3: 0.65
Median: 0.27
ARM: 0.06
Q1: 0.04
Min: 0.00

STM

Semiconductors & Semiconductor Equipment industry group

0.19

Max: 1.46
Q3: 0.65
Median: 0.27
STM: 0.19
Q1: 0.04
Min: 0.00

Arm Holdings (ARM) vs. STMicroelectronics (STM): A comparison of their debt-to-equity ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Arm Holdings (ARM) and STMicroelectronics (STM)
Metric	ARM	STM
Current Ratio (MRQ)	6.35	3.13
Debt / Equity (MRQ)	0.06	0.19
Net Debt / EBITDA	-2.77	-0.63

Dividends

Dividend Yield (TTM)

Arm Holdings (ARM) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile STMicroelectronics (STM) reports a yield of 0.90%, ranking against industry peers normally.

ARM

Semiconductors & Semiconductor Equipment industry group

0.00%

Max: 1.37%
Q3: 0.65%
ARM: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

STM

Semiconductors & Semiconductor Equipment industry group

0.90%

Max: 1.37%
STM: 0.90%
Q3: 0.65%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Arm Holdings (ARM) vs. STMicroelectronics (STM): A comparison of their dividend yield against the Semiconductors & Semiconductor Equipment industry group benchmark.

Dividend Payout Ratio (TTM)

Arm Holdings (ARM) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile STMicroelectronics (STM) reports a payout of 63.16%, ranking against industry peers normally.

ARM

Semiconductors & Semiconductor Equipment industry group

0.00%

Max: 49.64%
Q3: 21.71%
ARM: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

STM

Semiconductors & Semiconductor Equipment industry group

63.16%

STM: 63.16%
Max: 49.64%
Q3: 21.71%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Arm Holdings (ARM) vs. STMicroelectronics (STM): A comparison of their payout ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Dividend Metrics

Dividend metrics for Arm Holdings (ARM) and STMicroelectronics (STM)
Metric	ARM	STM
Dividend Yield (TTM)	0.00%	0.90%
Dividend Payout Ratio (TTM)	0.00%	63.16%

Valuation

P/E Ratio (TTM)

Both look expensive on trailing earnings: STMicroelectronics (STM) at 73.19 sits in the richer P/E ratio quartile, and Arm Holdings (ARM) at 200.71 is richer still, above its industry range.

ARM

Semiconductors & Semiconductor Equipment industry group

200.71

ARM: 200.71
Max: 110.34
Q3: 66.81
Median: 37.02
Q1: 23.96
Min: 8.12

STM

Semiconductors & Semiconductor Equipment industry group

73.19

Max: 110.34
STM: 73.19
Q3: 66.81
Median: 37.02
Q1: 23.96
Min: 8.12

Arm Holdings (ARM) vs. STMicroelectronics (STM): A comparison of their P/E ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

P/S Ratio (TTM)

STMicroelectronics (STM) at 2.73 sits in the cheaper P/S ratio quartile while Arm Holdings (ARM) at 34.20 prices above its industry range — a wide gap in sales valuation between them.

ARM

Semiconductors & Semiconductor Equipment industry group

34.20

ARM: 34.20
Max: 21.42
Q3: 12.27
Median: 5.76
Q1: 2.73
Min: 0.00

STM

Semiconductors & Semiconductor Equipment industry group

2.73

Max: 21.42
Q3: 12.27
Median: 5.76
Q1: 2.73
STM: 2.73
Min: 0.00

Arm Holdings (ARM) vs. STMicroelectronics (STM): A comparison of their P/S ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

P/B Ratio (MRQ)

STMicroelectronics (STM) at 2.09 sits in the lower P/B ratio quartile relative to book while Arm Holdings (ARM) at 20.56 prices above its industry range — a wide valuation gap against assets.

ARM

Semiconductors & Semiconductor Equipment industry group

20.56

ARM: 20.56
Max: 14.06
Q3: 7.44
Median: 4.29
Q1: 2.30
Min: 0.20

STM

Semiconductors & Semiconductor Equipment industry group

2.09

Max: 14.06
Q3: 7.44
Median: 4.29
Q1: 2.30
STM: 2.09
Min: 0.20

Arm Holdings (ARM) vs. STMicroelectronics (STM): A comparison of their P/B ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Valuation Metrics

Valuation metrics for Arm Holdings (ARM) and STMicroelectronics (STM)
Metric	ARM	STM
P/E Ratio (TTM)	200.71	73.19
P/S Ratio (TTM)	34.20	2.73
P/B Ratio (MRQ)	20.56	2.09
Free Cash Flow Yield (TTM)	0.61%	0.29%