ARM vs. STX: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARM and STX, 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 STX’s 22.16 billion USD by roughly 6.22×.
ARM’s beta of 4.41 points to much larger expected swings compared to STX’s calmer 1.34, 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 STX remains a standard domestic listing.
| Symbol | ARM | STX |
|---|---|---|
| Company Name | Arm Holdings plc American Depositary Shares | Seagate Technology Holdings plc |
| Country | GB | IE |
| Sector | Technology | Technology |
| Industry | Semiconductors | Computer Hardware |
| CEO | Mr. Rene Anthony Andrada Haas | Dr. William David Mosley Ph.D. |
| Price | 130.45 USD | 104.43 USD |
| Market Cap | 137.89 billion USD | 22.16 billion USD |
| Beta | 4.41 | 1.34 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | September 14, 2023 | December 11, 2002 |
| ADR | Yes | No |
Performance Comparison
This chart compares the performance of ARM and STX 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 STX based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- ARM stands out with a premium P/E of 170.26, while STX at 14.82 remains within a more conventional earnings multiple.
- STX shows a negative forward PEG of -6.15, signaling expected earnings contraction, while ARM at 6.09 maintains analysts’ projections for stable or improved profits.
- STX carries a sub-zero price-to-book ratio of -26.71, indicating negative equity. In contrast, ARM (P/B 21.38) has positive book value.
| Symbol | ARM | STX |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 170.26 | 14.82 |
| Forward PEG Ratio (TTM) | 6.09 | -6.15 |
| Price-to-Sales Ratio (P/S, TTM) | 37.33 | 2.60 |
| Price-to-Book Ratio (P/B, TTM) | 21.38 | -26.71 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 220.26 | 23.21 |
| EV-to-EBITDA (TTM) | 221.33 | 10.44 |
| EV-to-Sales (TTM) | 36.85 | 2.50 |
| EV-to-Free Cash Flow (TTM) | 217.45 | 22.35 |
Dividend Comparison
ARM offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while STX provides a 2.72% dividend yield, giving investors a steady income stream.
| Symbol | ARM | STX |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.72% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ARM and STX, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- STX posts a quick ratio of 0.75, indicating limited coverage of short-term debts from its most liquid assets—while ARM at 4.96 enjoys stronger liquidity resilience.
- ARM shows “--” (minimal interest expense), but STX is in the red with interest coverage -9.96, signaling a net operating loss.
| Symbol | ARM | STX |
|---|---|---|
| Current Ratio (TTM) | 4.96 | 1.36 |
| Quick Ratio (TTM) | 4.96 | 0.75 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 0.00 |
| Debt-to-Assets Ratio (TTM) | 0.03 | 0.00 |
| Interest Coverage Ratio (TTM) | -- | -9.96 |