ARM vs. TTWO: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARM and TTWO, 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 TTWO’s 40.02 billion USD by roughly 3.45×.
ARM’s beta of 4.41 points to much larger expected swings compared to TTWO’s calmer 1.09, 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 TTWO remains a standard domestic listing.
| Symbol | ARM | TTWO |
|---|---|---|
| Company Name | Arm Holdings plc American Depositary Shares | Take-Two Interactive Software, Inc. |
| Country | GB | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Electronic Gaming & Multimedia |
| CEO | Mr. Rene Anthony Andrada Haas | Mr. Strauss H. Zelnick Esq., J.D. |
| Price | 130.45 USD | 226.76 USD |
| Market Cap | 137.89 billion USD | 40.02 billion USD |
| Beta | 4.41 | 1.09 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | September 14, 2023 | April 15, 1997 |
| ADR | Yes | No |
Performance Comparison
This chart compares the performance of ARM and TTWO 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 TTWO based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- ARM trades at a lofty P/E of 170.26, implying strong growth expectations, in contrast to TTWO’s negative P/E of -8.95 driven by recent losses.
- TTWO shows a negative forward PEG of -0.30, signaling expected earnings contraction, while ARM at 6.09 maintains analysts’ projections for stable or improved profits.
- TTWO reports a negative Price-to-Free Cash Flow ratio of -80.92, showing a cash flow shortfall that could threaten its operational sustainability, while ARM at 220.26 maintains positive cash flow.
| Symbol | ARM | TTWO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 170.26 | -8.95 |
| Forward PEG Ratio (TTM) | 6.09 | -0.30 |
| Price-to-Sales Ratio (P/S, TTM) | 37.33 | 7.10 |
| Price-to-Book Ratio (P/B, TTM) | 21.38 | 18.75 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 220.26 | -80.92 |
| EV-to-EBITDA (TTM) | 221.33 | -11.55 |
| EV-to-Sales (TTM) | 36.85 | 7.13 |
| EV-to-Free Cash Flow (TTM) | 217.45 | -81.17 |
Dividend Comparison
Neither ARM nor TTWO 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 | TTWO |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ARM and TTWO, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- TTWO’s current ratio of 0.78 indicates its assets may not cover near-term debts, whereas ARM at 4.96 maintains healthy liquidity.
- TTWO posts a quick ratio of 0.78, 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 TTWO is in the red with interest coverage -86.19, signaling a net operating loss.
| Symbol | ARM | TTWO |
|---|---|---|
| Current Ratio (TTM) | 4.96 | 0.78 |
| Quick Ratio (TTM) | 4.96 | 0.78 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 0.75 |
| Debt-to-Assets Ratio (TTM) | 0.03 | 0.17 |
| Interest Coverage Ratio (TTM) | -- | -86.19 |