Head-To-Head Contrast: ams-OSRAM (OTCMKTS:AMSSY) vs. ARM (NASDAQ:ARM)

ARM (NASDAQ:ARM) and ams-OSRAM (OTCMKTS:AMSSY) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of current ratings for ARM and ams-OSRAM, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARM	0	8	18	1	2.74
ams-OSRAM	1	1	0	0	1.50

ARM presently has a consensus target price of $179.80, suggesting a potential upside of 29.18%. Given ARM’s stronger consensus rating and higher possible upside, equities research analysts plainly believe ARM is more favorable than ams-OSRAM.

Profitability

This table compares ARM and ams-OSRAM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARM	18.81%	15.03%	11.39%
ams-OSRAM	-4.86%	2.56%	0.45%

Earnings and Valuation

This table compares ARM and ams-OSRAM”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARM	$4.01 billion	36.70	$792.00 million	$0.78	178.45
ams-OSRAM	$3.71 billion	0.26	-$850.53 million	($0.90)	-5.38

ARM has higher revenue and earnings than ams-OSRAM. ams-OSRAM is trading at a lower price-to-earnings ratio than ARM, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

7.5% of ARM shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

ARM has a beta of 4.23, meaning that its stock price is 323% more volatile than the S&P 500. Comparatively, ams-OSRAM has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Summary

ARM beats ams-OSRAM on 14 of the 14 factors compared between the two stocks.

About ARM

Arm Holdings Plc engages in the licensing, marketing, research, and development of microprocessors, systems IP, graphics processing units, physical IP and associated systems IP, software, and tools. It operates through the following geographical segments: United Kingdom, United States, and Other Countries. The company was founded on November 12, 1990 and is headquartered in Cambridge, the United Kingdom.

About ams-OSRAM

ams-OSRAM AG designs, manufactures, and sells LED and optical sensor solutions in Europe, the Middle East, Africa, the Americas, and Asia/Pacific. The company operates in Semiconductors and Lamps & Systems segments. The Semiconductors segment offers semiconductor-based products and solutions, such as high-performance LEDs, lasers, and optical sensors for automotive, consumer, and industrial and medical technology end markets. The Lamps & Systems segment provides lamps and lighting systems for the automotive, industrial, and medical end markets. The company was formerly known as ams AG and changed its name to ams-OSRAM AG in January 2022. ams-OSRAM AG is headquartered in Premstätten, Austria.