ARM (NASDAQ: ARMH) is one of 102 publicly-traded companies in the “Semiconductors” industry, but how does it weigh in compared to its rivals? We will compare ARM to related businesses based on the strength of its earnings, risk, institutional ownership, dividends, profitability, analyst recommendations and valuation.

Institutional and Insider Ownership

19.7% of ARM shares are held by institutional investors. Comparatively, 65.1% of shares of all “Semiconductors” companies are held by institutional investors. 3.0% of ARM shares are held by insiders. Comparatively, 6.7% of shares of all “Semiconductors” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

ARM pays an annual dividend of $0.34 per share and has a dividend yield of 0.5%. ARM pays out 35.4% of its earnings in the form of a dividend. As a group, “Semiconductors” companies pay a dividend yield of 1.4% and pay out 55.0% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares ARM and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
ARM N/A N/A 70.59
ARM Competitors $4.31 billion $520.00 million 42.25

ARM’s rivals have higher revenue and earnings than ARM. ARM is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares ARM and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ARM 33.10% 19.72% 16.87%
ARM Competitors -58.03% 1.72% 1.56%

Analyst Recommendations

This is a breakdown of recent recommendations for ARM and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ARM 0 0 1 0 3.00
ARM Competitors 943 4796 8813 368 2.58

As a group, “Semiconductors” companies have a potential upside of 12.98%. Given ARM’s rivals higher probable upside, analysts plainly believe ARM has less favorable growth aspects than its rivals.

ARM Company Profile

ARM Holdings plc (ARM) is a company engaged in designing a range of inter-related intellectual property (IP), including microprocessors, Physical IP, and supporting software and tools. Its product offering includes 16/32/64-bit reduced instruction set computing (RISC) microprocessors, data engines, graphics processors, digital libraries, embedded memories, peripherals, software and development tools, as well as analog functions and high-speed connectivity products. The Company licenses and sells its technology and products to international electronics companies, which in turn manufacture, market and sell microprocessors, application-specific integrated circuits (ASICs), application-specific standard processors (ASSPs) and microcontrollers (MCUs) based on ARM’s technology to systems companies for incorporation into a range of end products. Its principal geographic markets are Europe, the United States and Asia Pacific.

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