ARM vs. SWKS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARM and SWKS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
ARM trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, SWKS is a standard domestic listing.
| Symbol | ARM | SWKS |
|---|---|---|
| Company Name | Arm Holdings plc | Skyworks Solutions, Inc. |
| Country | United Kingdom | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Semiconductors & Semiconductor Equipment | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 165.48 billion USD | 11.42 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | September 14, 2023 | September 7, 1984 |
| Security Type | ADR | Common Stock |
Historical Performance
This chart compares the performance of ARM and SWKS 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.
Historical Performance at a Glance
| Symbol | ARM | SWKS |
|---|---|---|
| 5-Day Price Return | 10.41% | -0.09% |
| 13-Week Price Return | 6.36% | 0.95% |
| 26-Week Price Return | 46.03% | 19.02% |
| 52-Week Price Return | 13.01% | -20.49% |
| Month-to-Date Return | 10.41% | -0.09% |
| Year-to-Date Return | 26.64% | -13.27% |
| 10-Day Avg. Volume | 4.21M | 1.93M |
| 3-Month Avg. Volume | 4.66M | 2.80M |
| 3-Month Volatility | 48.15% | 27.82% |
| Beta | 2.59 | 1.29 |
Profitability
Return on Equity (TTM)
ARM
10.64%
Semiconductors & Semiconductor Equipment Industry
- Max
- 47.13%
- Q3
- 23.50%
- Median
- 9.94%
- Q1
- 0.86%
- 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.
SWKS
6.51%
Semiconductors & Semiconductor Equipment Industry
- Max
- 47.13%
- Q3
- 23.50%
- Median
- 9.94%
- Q1
- 0.86%
- Min
- -20.69%
SWKS’s Return on Equity of 6.51% is on par with the norm for the Semiconductors & Semiconductor Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
ARM
16.96%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.41%
- Q3
- 23.88%
- Median
- 10.17%
- Q1
- 1.21%
- Min
- -32.15%
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.
SWKS
9.88%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.41%
- Q3
- 23.88%
- Median
- 10.17%
- Q1
- 1.21%
- Min
- -32.15%
SWKS’s Net Profit Margin of 9.88% 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.
Operating Profit Margin (TTM)
ARM
18.51%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.09%
- Q3
- 27.54%
- Median
- 11.18%
- Q1
- 3.31%
- Min
- -28.36%
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.
SWKS
11.18%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.09%
- Q3
- 27.54%
- Median
- 11.18%
- Q1
- 3.31%
- Min
- -28.36%
SWKS’s Operating Profit Margin of 11.18% is around the midpoint for the Semiconductors & Semiconductor Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ARM | SWKS |
|---|---|---|
| Return on Equity (TTM) | 10.64% | 6.51% |
| Return on Assets (TTM) | 8.01% | 4.92% |
| Net Profit Margin (TTM) | 16.96% | 9.88% |
| Operating Profit Margin (TTM) | 18.51% | 11.18% |
| Gross Profit Margin (TTM) | 97.14% | 41.49% |
Financial Strength
Current Ratio (MRQ)
ARM
4.99
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.58
- Q3
- 4.24
- Median
- 2.73
- Q1
- 2.13
- Min
- 1.02
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.
SWKS
2.39
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.58
- Q3
- 4.24
- Median
- 2.73
- Q1
- 2.13
- Min
- 1.02
SWKS’s Current Ratio of 2.39 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
ARM
0.00
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.09
- Q3
- 0.48
- Median
- 0.25
- 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.
SWKS
0.18
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.09
- Q3
- 0.48
- Median
- 0.25
- Q1
- 0.01
- Min
- 0.00
SWKS’s Debt-to-Equity Ratio of 0.18 is typical for the Semiconductors & Semiconductor Equipment 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 (TTM)
ARM
6.95
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 74.71
- Median
- 26.06
- Q1
- 6.43
- Min
- -7.80
ARM’s Interest Coverage Ratio of 6.95 is positioned comfortably within the norm for the Semiconductors & Semiconductor Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
SWKS
21.73
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 74.71
- Median
- 26.06
- Q1
- 6.43
- Min
- -7.80
SWKS’s Interest Coverage Ratio of 21.73 is positioned comfortably within the norm for the Semiconductors & Semiconductor Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ARM | SWKS |
|---|---|---|
| Current Ratio (MRQ) | 4.99 | 2.39 |
| Quick Ratio (MRQ) | 4.77 | 1.64 |
| Debt-to-Equity Ratio (MRQ) | 0.00 | 0.18 |
| Interest Coverage Ratio (TTM) | 6.95 | 21.73 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
ARM
0.00%
Semiconductors & Semiconductor Equipment Industry
- Max
- 3.72%
- Q3
- 1.51%
- Median
- 0.69%
- 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.
SWKS
3.90%
Semiconductors & Semiconductor Equipment Industry
- Max
- 3.72%
- Q3
- 1.51%
- Median
- 0.69%
- Q1
- 0.00%
- Min
- 0.00%
SWKS’s Dividend Yield of 3.90% is exceptionally high, placing it well above the typical range for the Semiconductors & Semiconductor Equipment industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio (TTM)
ARM
0.00%
Semiconductors & Semiconductor Equipment Industry
- Max
- 205.27%
- Q3
- 88.01%
- Median
- 27.13%
- 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.
SWKS
110.80%
Semiconductors & Semiconductor Equipment Industry
- Max
- 205.27%
- Q3
- 88.01%
- Median
- 27.13%
- Q1
- 0.00%
- Min
- 0.00%
SWKS’s Dividend Payout Ratio of 110.80% is in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ARM | SWKS |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 3.90% |
| Dividend Payout Ratio (TTM) | 0.00% | 110.80% |
Valuation
Price-to-Earnings Ratio (TTM)
ARM
231.25
Semiconductors & Semiconductor Equipment Industry
- Max
- 106.30
- Q3
- 61.93
- Median
- 38.96
- Q1
- 23.71
- Min
- 13.06
At 231.25, 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.
SWKS
28.44
Semiconductors & Semiconductor Equipment Industry
- Max
- 106.30
- Q3
- 61.93
- Median
- 38.96
- Q1
- 23.71
- Min
- 13.06
SWKS’s P/E Ratio of 28.44 is within the middle range for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
ARM
39.22
Semiconductors & Semiconductor Equipment Industry
- Max
- 19.99
- Q3
- 10.21
- Median
- 5.23
- Q1
- 2.88
- Min
- 1.13
With a P/S Ratio of 39.22, 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.
SWKS
2.81
Semiconductors & Semiconductor Equipment Industry
- Max
- 19.99
- Q3
- 10.21
- Median
- 5.23
- Q1
- 2.88
- Min
- 1.13
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, SWKS’s P/S Ratio of 2.81 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio (MRQ)
ARM
24.45
Semiconductors & Semiconductor Equipment Industry
- Max
- 14.22
- Q3
- 6.94
- Median
- 4.29
- Q1
- 1.99
- Min
- 0.67
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.
SWKS
1.99
Semiconductors & Semiconductor Equipment Industry
- Max
- 14.22
- Q3
- 6.94
- Median
- 4.29
- Q1
- 1.99
- Min
- 0.67
SWKS’s P/B Ratio of 1.99 is within the conventional range for the Semiconductors & Semiconductor Equipment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | ARM | SWKS |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 231.25 | 28.44 |
| Price-to-Sales Ratio (TTM) | 39.22 | 2.81 |
| Price-to-Book Ratio (MRQ) | 24.45 | 1.99 |
| Price-to-Free Cash Flow Ratio (TTM) | 227.35 | 8.50 |