ARM Holdings PLC Sponsored ADR (ARM) vs NVIDIA Corporation (NVDA)

ARM Holdings PLC Sponsored ADR and NVIDIA Corporation are both Semiconductors companies. NVIDIA Corporation is the larger, with a market value of $5.24T against $261.4B — 20.0× the size. NVIDIA Corporation trades at the lower P/E: 26.9× against 235×. NVIDIA Corporation grew revenue faster over the last twelve months: 83.4% against 25.1%. NVIDIA Corporation has the higher net margin (63.7% vs 20.3%) and the higher return on invested capital (76.2% vs 11.6%). Across the 22 metrics below, NVIDIA Corporation leads on 18 and ARM Holdings PLC Sponsored ADR on 4.

Valuation

Metric ARM NVDA Semiconductors median
P/E 234.85 26.93 45.58
P/S 47.10 17.10 7.63
P/B 28.14 22.62 4.90
Price to free cash flow 164.97 40.78 48.34
EV/EBITDA 209.42 25.40 28.36
EV/Sales 46.34 16.88 7.15
Earnings yield 0.43% 3.71% 0.75%
Free cash flow yield 0.61% 2.45% 0.67%

Profitability

Metric ARM NVDA Semiconductors median
Gross margin 97.54% 74.67% 52.28%
Operating margin 17.01% 65.21% 4.76%
Net margin 20.25% 63.66% 4.26%
Free cash flow margin 28.55% 41.92% 8.47%
Return on equity 13.35% 117.21% 2.59%
Return on assets 10.14% 83.68% 1.78%
Return on invested capital 11.56% 76.24% 2.27%

Growth

Metric ARM NVDA Semiconductors median
Revenue growth (TTM) 25.12% 83.38% 16.92%
EPS growth (last fiscal year) 13.33% 66.67% 27.17%
Revenue growth, 5-year CAGR 12.73% 66.90% 5.83%
Net income growth, 5-year CAGR 10.49% 94.33% 0.00%

Health

Metric ARM NVDA Semiconductors median
Debt to equity 0.00 0.14 0.05
Current ratio 5.25 4.59 3.28
Net debt to EBITDA (3.13) (0.41) 0.58

Dividend

Metric ARM NVDA Semiconductors median
Dividend yield — 0.24% 1.19%
Payout ratio — 0.07 0.40

Size

Metric ARM NVDA Semiconductors median
Market cap 261.44b 5.24t 5.43b

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