Financial Survey: Qorvo (NASDAQ:QRVO) & ARM (NASDAQ:ARM)

ARM (NASDAQ:ARM) and Qorvo (NASDAQ:QRVO) are both large-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Institutional & Insider Ownership

7.5% of ARM shares are held by institutional investors. Comparatively, 88.6% of Qorvo shares are held by institutional investors. 0.5% of Qorvo shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

ARM has a beta of 3.78, meaning that its stock price is 278% more volatile than the S&P 500. Comparatively, Qorvo has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for ARM and Qorvo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARM	1	7	18	1	2.70
Qorvo	1	14	3	0	2.11

ARM currently has a consensus target price of $303.32, indicating a potential upside of 3.76%. Qorvo has a consensus target price of $94.00, indicating a potential downside of 16.23%. Given ARM’s stronger consensus rating and higher probable upside, equities research analysts clearly believe ARM is more favorable than Qorvo.

Earnings and Valuation

This table compares ARM and Qorvo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARM	$4.92 billion	63.46	$904.00 million	$0.97	301.38
Qorvo	$3.68 billion	2.69	$338.99 million	$4.31	26.03

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

Profitability

This table compares ARM and Qorvo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARM	20.25%	12.24%	9.41%
Qorvo	10.95%	17.23%	10.06%

Summary

ARM beats Qorvo on 10 of the 15 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 Qorvo

Qorvo, Inc. engages in development and commercialization of technologies and products for wireless, wired, and power markets. It operates through three segments: High Performance Analog (HPA), Connectivity and Sensors Group (CSG), and Advanced Cellular Group (ACG). The HPA segment supplies radio frequency and power management solutions for automotive, defense and aerospace, cellular infrastructure, broadband, and other markets. The CSG segment supplies connectivity and sensor components and systems featuring various technologies, such as UWB, Matter, Bluetooth Low Energy, Zigbee, Thread, Wi-Fi, cellular IoT, and MEMS-/BAW-based sensors. It serves markets, such as smart home, industrial automation, automotive, smartphones, wearables, gaming, and industrial and enterprise access points. The ACG segment supplies cellular RF solutions for smartphones, wearables, laptops, tablets, and various other devices. The company also offers foundry services for defense primes and other defense and aerospace customers. The company sells its products directly to original equipment manufacturers and original design manufacturers, as well as through a network of sales representative firms and distributors. It operates in the United States, China, other Asian countries, Taiwan, and Europe. The company was founded in 1957 and is headquartered in Greensboro, North Carolina.