ARM vs. TTD: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARM and TTD, 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 TTD’s 36.60 billion USD by roughly 3.77×.
ARM’s beta of 4.41 points to much larger expected swings compared to TTD’s calmer 1.29, 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 TTD remains a standard domestic listing.
| Symbol | ARM | TTD |
|---|---|---|
| Company Name | Arm Holdings plc American Depositary Shares | The Trade Desk, Inc. |
| Country | GB | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Software - Application |
| CEO | Mr. Rene Anthony Andrada Haas | Mr. Jeffrey Terry Green |
| Price | 130.45 USD | 74.47 USD |
| Market Cap | 137.89 billion USD | 36.60 billion USD |
| Beta | 4.41 | 1.29 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | September 14, 2023 | September 21, 2016 |
| ADR | Yes | No |
Performance Comparison
This chart compares the performance of ARM and TTD 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 TTD 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 TTD at 89.44 remains within a more conventional earnings multiple.
| Symbol | ARM | TTD |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 170.26 | 89.44 |
| Forward PEG Ratio (TTM) | 6.09 | 3.54 |
| Price-to-Sales Ratio (P/S, TTM) | 37.33 | 14.24 |
| Price-to-Book Ratio (P/B, TTM) | 21.38 | 13.57 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 220.26 | 52.84 |
| EV-to-EBITDA (TTM) | 221.33 | 71.92 |
| EV-to-Sales (TTM) | 36.85 | 13.94 |
| EV-to-Free Cash Flow (TTM) | 217.45 | 51.71 |
Dividend Comparison
Neither ARM nor TTD currently pays a dividend yield; this often indicates they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.
| Symbol | ARM | TTD |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ARM and TTD, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- Neither ARM nor TTD records interest coverage (both “--”), indicating virtually no interest expense—usually a sign of negligible debt.
| Symbol | ARM | TTD |
|---|---|---|
| Current Ratio (TTM) | 4.96 | 1.81 |
| Quick Ratio (TTM) | 4.96 | 1.81 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 0.12 |
| Debt-to-Assets Ratio (TTM) | 0.03 | 0.06 |
| Interest Coverage Ratio (TTM) | -- | -- |