ARM vs. VRSN: A Head-to-Head Stock Comparison

Company Overview

ARM dominates in value with a market cap of 137.89 billion USD, eclipsing VRSN’s 26.39 billion USD by roughly 5.22×.

ARM’s beta of 4.41 points to much larger expected swings compared to VRSN’s calmer 0.80, 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 VRSN remains a standard domestic listing.

Performance Comparison

This chart compares the performance of ARM and VRSN 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 VRSN 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 VRSN at 33.62 remains within a more conventional earnings multiple.
• VRSN shows a negative forward PEG of -0.34, signaling expected earnings contraction, while ARM at 6.09 maintains analysts’ projections for stable or improved profits.
• VRSN carries a sub-zero price-to-book ratio of -18.93, indicating negative equity. In contrast, ARM (P/B 21.38) has positive book value.

Dividend Comparison

ARM offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while VRSN provides a 0.27% dividend yield, giving investors a steady income stream.

Financial Strength Metrics Comparison

This section dives into the financial resilience of ARM and VRSN, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

• VRSN’s current ratio of 0.56 indicates its assets may not cover near-term debts, whereas ARM at 4.96 maintains healthy liquidity.
• VRSN posts a quick ratio of 0.56, indicating limited coverage of short-term debts from its most liquid assets—while ARM at 4.96 enjoys stronger liquidity resilience.
• VRSN has negative equity (debt-to-equity ratio -1.28), suggesting asset shortfalls, whereas ARM at 0.04 preserves healthier equity coverage.
• VRSN carries a debt-to-assets ratio of 1.24, suggesting substantial asset funding via debt, while ARM at 0.03 opts for a more conservative financing structure.
• ARM shows “--” for interest coverage, hinting at negligible interest costs, whereas VRSN (at 13.94) covers its interest obligations.