Quick verdict: APH vs ARM in 2026

Amphenol Corporation (APH) appears to hold an overall edge in this stock comparison, outperforming Arm Holdings plc (ARM) across a majority of key financial metrics as of 2026-03-31. APH demonstrates stronger momentum as the growth leader, offers more attractive figures as the value leader, and exhibits superior operating efficiency as the margin leader. While ARM is undeniably an analyst favorite with a higher percentage of “Buy” ratings, APH presents a considerably higher price target upside according to consensus estimates. 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 2026-03-31.

APH vs ARM valuation comparison

When examining the APH vs ARM valuation, Amphenol Corporation (APH) appears to offer a significantly more attractive entry point based on traditional valuation metrics as of March 31, 2026. APH trades at a P/E ratio of 34.2x, which is considerably lower than Arm Holdings plc (ARM)’s P/E of 181.59x. This stark difference suggests that investors are paying a substantially higher premium for ARM’s earnings compared to APH’s. Similarly, APH’s Price-to-Book (P/B) ratio stands at 10.89x, which is also more favorable than ARM’s 18.65x.

Furthermore, a Discounted Cash Flow (DCF) analysis reveals a substantial difference in implied overvaluation. APH’s DCF suggests a -24.7% downside, indicating a moderate overvaluation. In contrast, ARM’s DCF points to a staggering -95.0% downside, implying extreme overvaluation based on its current cash flow generation capabilities relative to its stock price. While both stocks appear overvalued by this metric, APH presents a much less concerning valuation profile. Therefore, for investors prioritizing a more reasonable valuation, APH is clearly the cheaper option in this APH vs ARM valuation comparison.

APH vs ARM growth comparison

In the APH vs ARM growth comparison, Amphenol Corporation (APH) exhibits stronger revenue momentum. APH reported an impressive year-over-year revenue growth of +51.7%, significantly outpacing Arm Holdings plc (ARM), which posted a revenue growth of +23.9%. This indicates that APH has been more successful in expanding its top-line sales over the past year. While ARM’s 23.9% growth is still respectable, particularly for a company of its scale and market position, APH’s performance highlights a more aggressive expansion or a period of strong demand for its products and services.

Looking at profitability in relation to growth, APH also maintains a superior Net Margin of 18.49% and an EBITDA Margin of 29.84%, compared to ARM’s Net Margin of 17.15% and EBITDA Margin of 22.41%. While ARM boasts an exceptionally high Gross Margin of 95.43% – indicative of its intellectual property licensing model – APH’s ability to translate its higher revenue growth into stronger operating and net profitability margins suggests more efficient cost management post-gross profit. For investors seeking companies with robust growth and strong profitability, APH demonstrates a more compelling profile across these metrics.

APH vs ARM profitability

When assessing APH vs ARM profitability, Amphenol Corporation (APH) generally demonstrates stronger financial efficiency. APH records a Net Margin of 18.49%, which is slightly higher than Arm Holdings plc (ARM)’s 17.15%. This indicates that APH is more effective at converting its revenue into net income for shareholders. Furthermore, APH’s EBITDA margin of 29.84% significantly outpaces ARM’s 22.41%, suggesting superior operational efficiency before interest, taxes, depreciation, and amortization. While both companies have ROE listed as N/A%, making a direct comparison difficult on that front, other metrics paint a clear picture.

More importantly, in terms of generating cash, APH exhibits a considerably higher Free Cash Flow (FCF) yield of 2.99% compared to ARM’s 0.67%. This substantial difference implies that APH generates a much greater amount of cash flow relative to its market capitalization, providing more flexibility for investments, debt reduction, or shareholder returns. This strong FCF yield is a key indicator of a company’s ability to self-fund its operations and growth. Therefore, in the APH vs ARM profitability analysis, Amphenol appears to be the more profitable and cash-generative enterprise.

Analyst ratings: APH vs ARM

The analyst community holds a “Buy” consensus for both Amphenol Corporation (APH) and Arm Holdings plc (ARM), yet their individual sentiments and price targets reveal differing levels of conviction. For APH, 29 analysts cover the stock, with 48.3% issuing a “Buy” rating. The consensus price target for APH is $173.11, representing a substantial potential upside of +45.3% from its current price of $119.15. This suggests that while not the overwhelming majority, a significant portion of analysts see considerable appreciation potential in APH.

In comparison, ARM garners a higher percentage of “Buy” ratings, with 77.8% of the 27 covering analysts recommending a buy. This indicates a stronger overall positive sentiment from the analyst community towards ARM. However, the consensus price target for ARM is $156.25, which offers a more modest potential upside of +14.1% from its current price of $136.96. While analysts appear to “prefer” ARM in terms of outright buy recommendations, APH currently offers a much greater implied return potential based on the average price target. This divergence highlights that while ARM may be broadly favored, APH might present a more compelling risk-reward scenario for investors specifically looking for upside according to analyst projections.

Should I buy APH or ARM stock in 2026?

Deciding whether you should buy APH or ARM stock in 2026 depends heavily on your investment objectives and risk tolerance, considering their distinct financial profiles. For growth-oriented investors, Amphenol Corporation (APH) appears to be the more compelling choice due to its robust revenue growth of +51.7% year-over-year, which significantly outpaces Arm Holdings plc (ARM)’s +23.9%. This suggests APH has stronger momentum in expanding its market share and top line. APH also translates this growth into better operating profitability, with superior Net and EBITDA margins.

For value investors, the APH vs ARM stock comparison strongly favors APH. Amphenol trades at a P/E ratio of 34.2x and a P/B ratio of 10.89x, which are considerably more attractive than ARM’s P/E of 181.59x and P/B of 18.65x. Furthermore, APH’s Discounted Cash Flow (DCF) analysis, while indicating overvaluation, is far less severe at -24.7% compared to ARM’s -95.0%. This suggests that ARM is significantly more overvalued based on its intrinsic value, making APH a more prudent option for those focused on fundamentals and valuation.

Regarding income, neither APH nor ARM are strong contenders for dividend investors. APH offers a negligible dividend yield of 0.01%, providing almost no income return. Arm Holdings plc (ARM) does not currently offer a dividend, with a 0% yield. Therefore, if generating income from your investments is a primary concern, both stocks would be unsuitable. Investors should consider their individual financial goals when evaluating “should I buy aph or arm stock in 2026.” This is not investment advice.

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FAQ: APH vs ARM