ARM (NASDAQ:ARM – Get Free Report) and Silicon Motion Technology (NASDAQ:SIMO – Get Free Report) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.
Valuation and Earnings
This table compares ARM and Silicon Motion Technology’s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
ARM | $2.70 billion | 36.53 | N/A | N/A | N/A |
Silicon Motion Technology | $639.14 million | 3.75 | $52.87 million | $1.58 | 45.93 |
Silicon Motion Technology has lower revenue, but higher earnings than ARM.
Insider and Institutional Ownership
Profitability
This table compares ARM and Silicon Motion Technology’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
ARM | N/A | 17.51% | 11.49% |
Silicon Motion Technology | 8.27% | 7.01% | 5.49% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for ARM and Silicon Motion Technology, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
ARM | 1 | 12 | 14 | 0 | 2.48 |
Silicon Motion Technology | 0 | 0 | 6 | 0 | 3.00 |
Silicon Motion Technology has a consensus target price of $87.57, indicating a potential upside of 20.67%. Given Silicon Motion Technology’s stronger consensus rating and higher possible upside, analysts clearly believe Silicon Motion Technology is more favorable than ARM.
About ARM
Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. It offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services. Its products are used in various markets, such as automotive, computing infrastructure, consumer technologies, and Internet of things. The company operates in the United States, the People's Republic of China, Taiwan, South Korea, and internationally. The company was founded in 1990 and is headquartered in Cambridge, the United Kingdom. Arm Holdings plc operates as a subsidiary of Kronos II LLC.
About Silicon Motion Technology
Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. The company offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications. It markets its controllers under the SMI brand; enterprise-grade SSDs under the Shannon Systems brand; and single-chip industrial-grade SSDs under the FerriSSD, Ferri-eMMC, and Ferri-UFS brands. The company markets and sells its products through direct sales personnel and independent electronics distributors to NAND flash makers, module makers, hyperscalers, and OEMs. It operates in Taiwan, the United States, Korea, China, Malaysia, Singapore, and internationally. The company was founded in 1995 and is based in Hong Kong, Hong Kong.
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