ARM vs. TEL: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARM and TEL, comparing key factors like performance, valuation metrics, dividends, and financial strength.
Company Overview
ARM’s market capitalization of 136.93 billion USD is substantially larger than TEL’s 48.14 billion USD, indicating a significant difference in their market valuations.
ARM’s beta of 4.10 points to significantly higher volatility compared to TEL (beta: 1.22), suggesting ARM has greater potential for both gains and losses relative to market movements.
ARM trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, TEL is a standard domestic listing.
| Symbol | ARM | TEL |
|---|---|---|
| Company Name | Arm Holdings plc American Depositary Shares | TE Connectivity Ltd. |
| Country | GB | CH |
| Sector | Technology | Technology |
| Industry | Semiconductors | Hardware, Equipment & Parts |
| CEO | Mr. Rene Anthony Andrada Haas | Mr. Terrence R. Curtin CPA |
| Price | 129.55 USD | 162.32 USD |
| Market Cap | 136.93 billion USD | 48.14 billion USD |
| Beta | 4.10 | 1.22 |
| Exchange | NASDAQ | NYSE |
| IPO Date | September 14, 2023 | June 14, 2007 |
| ADR | Yes | No |
Performance Comparison
This chart compares the performance of ARM and TEL over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
- ARM: $9485.98 (-5.14%)
- TEL: $11070.04 (10.70%)
Valuation Metrics Comparison
This section compares the market valuation of ARM and TEL. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.
- ARM’s Price-to-Earnings (P/E) ratio of 169.09 is very high. This often means that its current market price reflects high investor confidence in its future earnings potential, but it could also suggest the stock is expensive relative to its current earnings power.
- ARM’s Forward PEG ratio of 6.34 and TEL’s Forward PEG ratio of 3.19 are both considered very high. For ARM, this elevated ratio implies its stock price may incorporate highly optimistic growth assumptions that could be challenging to realize. TEL’s very high PEG also suggests its valuation is quite rich relative to its expected earnings growth, potentially indicating overvaluation.
- ARM’s Price-to-Book (P/B) ratio of 21.23 is very high. This often indicates that the market values the company significantly above its net asset value, usually reflecting strong profitability, valuable intangible assets (like brand or patents), or high expectations for future growth.
| Symbol | ARM | TEL |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 169.09 | 34.80 |
| Forward PEG Ratio (TTM) | 6.34 | 3.19 |
| Price-to-Sales Ratio (P/S, TTM) | 37.07 | 3.00 |
| Price-to-Book Ratio (P/B, TTM) | 21.23 | 4.00 |
| EV-to-EBITDA (TTM) | 219.79 | 13.54 |
| EV-to-Sales (TTM) | 36.59 | 3.19 |
Dividend Comparison
ARM currently offers no dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while TEL provides a 1.64% dividend yield, offering investors a component of income return.
| Symbol | ARM | TEL |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.64% |
Financial Strength Metrics Comparison
Explore the financial strength details for ARM and TEL in the table below.
| Symbol | ARM | TEL |
|---|---|---|
| Current Ratio (TTM) | 4.96 | 1.51 |
| Quick Ratio (TTM) | 4.96 | 1.08 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 0.46 |
| Debt-to-Asset Ratio (TTM) | 0.03 | 0.24 |
| Net Debt-to-EBITDA Ratio (TTM) | -2.87 | 0.81 |
| Interest Coverage Ratio (TTM) | -- | 55.98 |