Quick verdict: APH vs ARM in 2026

Amphenol Corporation (APH) appears to have a significant edge in this aph vs arm stock comparison 2026, showcasing superior metrics across valuation, growth, and profitability. While Arm Holdings (ARM) benefits from stronger analyst sentiment in terms of “Buy” ratings, APH offers a more compelling investment case based on its fundamentals and projected upside. Investors looking for a balanced combination of strong growth, reasonable valuation, and solid profitability may find APH more attractive. Not investment advice.

APH vs ARM: key metrics side by side

Full side-by-side comparison of APH and ARM across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-30.

APH vs ARM valuation comparison

When considering APH vs ARM valuation, Amphenol Corporation (APH) presents a significantly more appealing picture based on traditional metrics. APH currently trades at a P/E ratio of 42.59x, which, while not low, is considerably more grounded than ARM’s astronomical 267.41x P/E ratio. This vast difference suggests that ARM’s stock price incorporates extremely high growth expectations, making it highly susceptible to any deviations from those lofty projections. Similarly, APH’s Price-to-Book (P/B) ratio of 13.01x is far more reasonable than ARM’s 27.47x, further highlighting APH as the more attractively valued stock.

The Discounted Cash Flow (DCF) analysis reinforces APH’s stronger valuation. APH’s DCF suggests an undervaluation of -44.3%, indicating that its current price is less inflated compared to its intrinsic value. In stark contrast, ARM’s DCF points to a staggering -96.0% undervaluation, implying that its current market price is profoundly disconnected from its fundamental cash flow generating potential. This disparity makes APH clearly the cheaper option, offering a better margin of safety for investors focused on aph vs arm fundamentals and valuation, especially considering the aph vs arm pe ratio.

APH vs ARM growth comparison

In terms of growth, APH demonstrates significantly stronger momentum. Amphenol Corporation reported a robust year-over-year revenue growth of +51.7%, showcasing its ability to expand its top line at an impressive pace. This figure dwarfs Arm Holdings’ revenue growth of +23.9% over the same period, indicating that APH is currently accelerating faster in its market segments. APH, with a market capitalization of $182.42B, is a substantial player, yet still manages to deliver high growth, reflecting strong demand for its diversified portfolio of interconnect products.

While ARM’s revenue growth of 23.9% is respectable for its $214.19B market cap and its critical role in the semiconductor intellectual property space, it lags behind APH’s explosive expansion. Forward estimates, generally influenced by current trajectories and market positioning, would likely project APH to maintain a more aggressive growth curve given its current performance. This makes APH the clear leader for investors prioritizing growth in this aph vs arm stock comparison 2026, especially for those interested in aph vs arm earnings growth comparison and overall revenue expansion.

APH vs ARM profitability

Analyzing the aph vs arm profitability, Amphenol Corporation (APH) generally exhibits stronger metrics across several key indicators. APH boasts a net margin of 18.49%, slightly outperforming ARM’s net margin of 17.15%. This indicates that APH is more efficient at converting its revenue into actual profit for shareholders. Furthermore, APH’s EBITDA margin stands at an impressive 29.84%, significantly higher than ARM’s 22.41%, showcasing APH’s superior operational efficiency before interest, taxes, depreciation, and amortization.

While the Return on Equity (ROE) for both companies is listed as N/A%, the Free Cash Flow (FCF) yield provides further insight into their cash-generating capabilities. APH’s FCF yield of 2.54% is considerably higher than ARM’s 0.45%. This suggests that APH generates substantially more free cash flow relative to its market capitalization, providing greater financial flexibility for investments, debt reduction, or potential shareholder returns. Overall, APH generates more cash and demonstrates better profitability, a crucial factor for investors examining aph vs arm dividend and margins analysis.

Analyst ratings: APH vs ARM

When it comes to analyst sentiment, there’s a nuanced picture for APH vs ARM. Amphenol Corporation (APH) has been covered by 29 analysts, with 51.7% issuing a “Buy” rating. The consensus among analysts for APH is a “Buy,” with a collective target price of $176.88. This target implies a significant potential upside of +19.2% from its current price of $148.38, suggesting confidence in its future performance and potential for capital appreciation.

Arm Holdings (ARM), while covered by a slightly fewer 27 analysts, commands a higher percentage of “Buy” ratings at 74.1%. Despite this stronger “Buy” sentiment, the consensus target price for ARM is $163.75, which actually represents a downside of -18.8% from its current price of $201.69. This discrepancy indicates that while many analysts like ARM’s long-term prospects, its current valuation might be considered stretched. Therefore, while analysts generally prefer ARM in terms of buy percentage, APH offers tangible upside according to target prices, making APH more attractive for investors looking at aph vs arm analyst ratings and recommendations and aph vs arm target price comparison 2026.

Should I buy APH or ARM stock in 2026?

For growth-oriented investors, the decision on whether to buy APH or ARM stock in 2026 involves weighing current performance against future potential embedded in valuation. APH currently boasts a robust revenue growth of 51.7% year-over-year, significantly outperforming ARM’s 23.9%. This suggests APH has stronger current momentum and a proven ability to scale rapidly. While ARM operates in the exciting and indispensable semiconductor IP sector, its current valuation metrics are exceptionally high, making it a riskier bet purely on future, unproven growth acceleration. Investors seeking strong, demonstrable growth today might lean towards APH.

From a value perspective, APH clearly stands out. Its P/E ratio of 42.59x and P/B ratio of 13.01x are considerably lower than ARM’s 267.41x P/E and 27.47x P/B. The DCF analysis further supports APH as the more undervalued stock, suggesting a -44.3% disconnect from its intrinsic value compared to ARM’s -96.0%. This indicates that APH offers a more reasonable entry point and a greater margin of safety for value investors. For those focused on aph vs arm fundamentals and valuation, APH appears to be the better choice if considering which is better investment aph or arm.

For income investors, neither APH nor ARM are primary choices, but APH offers a minimal dividend yield of 0.01% compared to ARM’s 0%. This makes APH marginally better for those who appreciate even a token dividend, though it’s not a significant factor in this aph vs arm stock comparison 2026. Ultimately, for investors considering the long-term investment outlook, APH provides a more compelling blend of strong current growth, superior profitability, and a more attractive valuation in 2026. This is not investment advice; always conduct your own comprehensive research before making any investment decisions.

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FAQ: APH vs ARM