How this ARM vs MU comparison is calculated

All metrics are based on trailing twelve months (TTM) financial data, consensus analyst estimates, and standardized valuation ratios. Data is sourced from Financial Modeling Prep and SEC EDGAR. Figures are normalized to ensure a fair comparison between Arm Holdings plc American Depositary Shares and Micron Technology, Inc.. Analyst price targets and ratings are aggregated from Wall Street consensus as of 2026-06-25.

Quick verdict: Arm Holdings plc American Depositary Shares vs Micron Technology, Inc. in 2026

Micron Technology, Inc. (MU) stands out as the growth leader, showcasing robust revenue expansion and superior profitability margins compared to Arm Holdings plc American Depositary Shares. For investors prioritizing valuation, MU presents a more attractive earnings multiple and a less pronounced DCF discount. Furthermore, Micron Technology, Inc. is the clear analyst favorite, boasting a higher buy rating percentage and substantial projected upside from current levels. Not investment advice.

Arm Holdings plc American Depositary Shares vs Micron Technology, Inc.: key metrics side by side

A full side-by-side look at Arm Holdings plc American Depositary Shares (ARM) and Micron Technology, Inc. (MU) across earnings multiples, profitability, revenue momentum, and analyst sentiment — data updated 2026-06-25.

Relative valuation: ARM vs MU

When assessing the relative valuation between Arm Holdings plc American Depositary Shares and Micron Technology, Inc., a stark difference in earnings multiples immediately becomes apparent. ARM trades at an exceptionally high P/E ratio of 427.48x, reflecting significant investor optimism or expectations of future explosive growth. This elevated earnings multiple stands in sharp contrast to MU’s more grounded P/E ratio of 23.39x, suggesting that Micron Technology, Inc. offers a considerable fundamental discount compared to its peer, based on current consensus data. Beyond earnings, the price-to-book ratio further solidifies this divergence: Arm Holdings plc American Depositary Shares carries a P/B of 46.07x, while MU’s equivalent metric is 11.72x, reinforcing the perception of ARM as a premium-priced equity.

Furthermore, a discounted cash flow (DCF) analysis reveals a substantial implied overvaluation for both companies, but with differing magnitudes. Arm Holdings plc American Depositary Shares shows a DCF upside of -98.0%, indicating its intrinsic value is considerably lower than its current trading price. Micron Technology, Inc. also shows a negative DCF upside of -57.5%, but this represents a significantly less aggressive implied overvaluation than ARM. Consequently, for value-conscious investors, MU appears to carry a more attractive valuation and a lower implied downside risk from a DCF perspective, suggesting a more sensible entry point compared to the richly valued ARM stock.

Revenue momentum: Arm Holdings plc American Depositary Shares vs Micron Technology, Inc.

Examining the revenue momentum, Micron Technology, Inc. exhibits a markedly stronger topline expansion. MU reported a year-over-year revenue growth of 48.9%, which indicates robust market demand and effective business execution in its segments. In comparison, Arm Holdings plc American Depositary Shares achieved a revenue growth of 22.8%. While ARM’s figure is healthy, it is less than half the pace set by Micron Technology, Inc., suggesting that MU currently possesses a more dynamic growth trajectory within the technology sector. This substantial difference in revenue increases highlights varying operational dynamics and market positions between the two companies.

Beyond just sales figures, the operational efficiency metrics further underscore this performance gap. Micron Technology, Inc. demonstrates a compelling EBITDA margin of 49.81%, reflecting strong control over its core operating costs relative to its revenue. Arm Holdings plc American Depositary Shares, while respectable, shows an EBITDA margin of 28.58%. This indicates that MU converts a significantly larger portion of its revenue into earnings before interest, taxes, depreciation, and amortization. While Micron Technology, Inc. currently boasts superior growth and operational profitability, it is important to acknowledge that this gap may not persist indefinitely, as market conditions and competitive landscapes can evolve rapidly for both ARM and MU.

Profitability and cash generation: ARM vs MU

In terms of bottom-line efficiency, Micron Technology, Inc. clearly outpaces Arm Holdings plc American Depositary Shares. MU recorded an impressive net margin of 55.91%, demonstrating its ability to convert a substantial portion of its revenue into profit for shareholders. This reflects strong cost management and potentially higher-margin product offerings or market pricing power. Conversely, ARM’s net margin stands at 18.37%, a solid figure in its own right, but significantly lower than that of Micron Technology, Inc. This discrepancy suggests that MU retains a greater percentage of each dollar of sales after all expenses, including taxes, are accounted for. Both companies report N/A% for Return on Equity (ROE), indicating that this metric is currently not applicable or available based on the provided data.

Moving to cash generation, the free cash flow (FCF) yield provides further insight into how effectively each company turns its operations into cash relative to its stock price. Micron Technology, Inc. boasts an FCF yield of 3.87%, signaling a healthy amount of cash generated per share that is available to shareholders or for reinvestment. Arm Holdings plc American Depositary Shares, on the other States, has a much lower free cash flow yield of 0.25%. This indicates that MU is far more efficient at converting its earnings into actual cash flow that can be used for debt reduction, dividends, or share buybacks. The superior cash conversion capacity of Micron Technology, Inc. positions it more favorably from a financial health and flexibility standpoint.

Wall Street view: Arm Holdings plc American Depositary Shares vs Micron Technology, Inc. analyst ratings

The sentiment from Wall Street analysts for Arm Holdings plc American Depositary Shares appears moderately optimistic, but with a cautious price objective. Out of 27 analysts covering ARM, 74.1% have issued a “Buy” rating, reflecting a general belief in the company’s long-term prospects. However, their consensus price target stands at $301, which implies a potential downside of -16.2% from its current trading price of $359.08. This suggests that while analysts like the company, they believe its current stock price may be ahead of its fair value or future growth expectations at this moment.

In contrast, Micron Technology, Inc. garners a stronger analyst preference and a more favorable price target. A significant 81.4% of the 70 analysts covering MU recommend a “Buy” rating, indicating a higher level of conviction in the stock. The consensus price target for Micron Technology, Inc. is $1353.18, which represents a substantial upside of +29.1% from its current price of $1048.51. This strong positive outlook on MU suggests analysts foresee significant appreciation. It is important to remember that these price objectives and ratings may vary depending on future estimate revisions and shifts in market conditions for both Arm Holdings plc American Depositary Shares and MU.

Which investor profile fits ARM vs MU?

For a growth investor, Micron Technology, Inc. (MU) presents a more compelling profile currently. With a robust year-over-year revenue growth of 48.9% and an impressive EBITDA margin of 49.81%, MU demonstrates strong topline momentum and operational efficiency. While Arm Holdings plc American Depositary Shares also shows growth at 22.8%, it trails significantly behind Micron Technology, Inc. The higher revenue expansion and profitability suggest MU is better positioned to deliver aggressive growth, assuming current trends in the semiconductor market persist. Therefore, those seeking high-growth opportunities might find MU more aligned with their investment strategy.

From the perspective of a value investor, Micron Technology, Inc. (MU) appears to offer a more attractive proposition. Its P/E ratio of 23.39x is vastly lower than ARM’s exceptionally high 427.48x earnings multiple, indicating that MU trades at a considerable discount relative to its earnings. Similarly, Micron Technology, Inc.’s price-to-book ratio of 11.72x is also significantly more palatable than Arm Holdings plc American Depositary Shares’ 46.07x. Furthermore, while both companies show negative DCF upsides, MU’s -57.5% is considerably less severe than ARM’s -98.0%, implying a smaller perceived overvaluation. These metrics suggest that MU offers a better fundamental discount for value-oriented portfolios.

For income investors, neither Arm Holdings plc American Depositary Shares nor Micron Technology, Inc. would be suitable choices. Both companies have a dividend yield of 0%, meaning they do not distribute any portion of their earnings to shareholders in the form of regular dividends. This is typical for many high-growth technology companies that choose to reinvest all profits back into the business for future expansion. Therefore, investors prioritizing regular income streams should look elsewhere, as ARM and MU are focused on capital appreciation rather than dividend payouts. This is not investment advice. Always do your own research.

More Arm Holdings plc American Depositary Shares and Micron Technology, Inc. comparisons

Arm Holdings plc American Depositary Shares (ARM) full stock analysis · Micron Technology, Inc. (MU) full stock analysis · All stock comparisons