ARM Holdings PLC Sponsored ADR (ARM) vs Monolithic Power Systems, Inc. (MPWR)

ARM Holdings PLC Sponsored ADR and Monolithic Power Systems, Inc. are both Semiconductors companies. ARM Holdings PLC Sponsored ADR is the larger, with a market value of $204.8B against $61.5B — 3.3× the size. Monolithic Power Systems, Inc. trades at the lower P/E: 68.5× against 197×. Monolithic Power Systems, Inc. grew revenue faster over the last twelve months: 40.5% against 25.1%. Monolithic Power Systems, Inc. has the higher net margin (23.9% vs 20.3%) and the higher return on invested capital (26.1% vs 11.6%). Across the 21 metrics below, Monolithic Power Systems, Inc. leads on 14 and ARM Holdings PLC Sponsored ADR on 7.

Valuation

Metric ARM MPWR Semiconductors median
P/E 196.76 68.48 44.75
P/S 39.46 16.37 7.21
P/B 23.58 16.39 4.87
Price to free cash flow 138.22 159.35 49.60
EV/EBITDA 174.91 60.18 26.59
EV/Sales 38.71 16.08 6.30
Earnings yield 0.51% 1.46% 0.76%
Free cash flow yield 0.72% 0.63% 0.74%

Profitability

Metric ARM MPWR Semiconductors median
Gross margin 97.54% 55.26% 52.21%
Operating margin 17.01% 29.50% 5.48%
Net margin 20.25% 23.93% 4.26%
Free cash flow margin 28.55% 0.00% 8.00%
Return on equity 13.35% 24.51% 3.17%
Return on assets 10.14% 20.15% 2.03%
Return on invested capital 11.56% 26.08% 2.80%

Growth

Metric ARM MPWR Semiconductors median
Revenue growth (TTM) 25.12% 40.49% 15.93%
EPS growth (last fiscal year) 13.33% (60.89%) 26.67%
Revenue growth, 5-year CAGR 12.73% 27.00% 5.60%
Net income growth, 5-year CAGR 10.49% 30.47% 0.00%

Health

Metric ARM MPWR Semiconductors median
Debt to equity 0.00 0.00 0.07
Current ratio 5.25 3.70 3.29
Net debt to EBITDA (3.13) (1.62) 0.53

Dividend

Metric ARM MPWR Semiconductors median
Dividend yield — 0.61% 1.29%
Payout ratio — 0.42 0.38

Size

Metric ARM MPWR Semiconductors median
Market cap 204.84b 61.53b 5.67b

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