In the fast-evolving semiconductor industry, Arm Holdings plc (ARM) and Marvell Technology, Inc. (MRVL) stand out as key players shaping innovation and market dynamics. Both companies develop critical chip technologies used across diverse sectors like computing, networking, and storage, making their strategies and growth prospects highly relevant to investors. This article will provide a clear comparison to help you decide which company offers the most compelling investment opportunity.
Table of contents
Companies Overview
I will begin the comparison between Arm Holdings plc and Marvell Technology, Inc. by providing an overview of these two companies and their main differences.
Arm Holdings plc Overview
Arm Holdings plc develops and licenses central processing unit products and related technologies, serving semiconductor companies and original equipment manufacturers. The company offers microprocessors, systems IPs, graphics processing units, and related software for markets including automotive, computing infrastructure, consumer technologies, and IoT. Founded in 1990 and headquartered in Cambridge, UK, Arm operates globally and is a subsidiary of Kronos II LLC.
Marvell Technology, Inc. Overview
Marvell Technology, Inc. designs, develops, and sells integrated circuits, including analog, mixed-signal, and digital signal processing chips. Its product portfolio covers Ethernet solutions, multi-core processors, ASICs, and storage controllers supporting various host system interfaces. Founded in 1995 and based in Wilmington, Delaware, Marvell has a broad international presence with operations across Asia and the US.
Key similarities and differences
Both companies operate in the semiconductor industry and provide technology solutions essential to computing and communications. Arm focuses on licensing CPU architectures and system IP, while Marvell emphasizes integrated circuit design and storage and network controllers. Geographically, Arm is UK-based with a global footprint, whereas Marvell is US-based with extensive operations in Asia. Their market caps differ significantly, with Arm valued at approximately 111B USD and Marvell at about 69B USD.
Income Statement Comparison
The table below compares key income statement metrics for Arm Holdings plc American Depositary Shares (ARM) and Marvell Technology, Inc. (MRVL) for their most recent fiscal year.
| Metric | Arm Holdings plc American Depositary Shares (ARM) | Marvell Technology, Inc. (MRVL) |
|---|---|---|
| Market Cap | 111B | 69.3B |
| Revenue | 4.01B | 5.77B |
| EBITDA | 903M | 652M |
| EBIT | 720M | -705M |
| Net Income | 792M | -885M |
| EPS | 0.75 | -1.02 |
| Fiscal Year | 2025 | 2025 |
Income Statement Interpretations
Arm Holdings plc American Depositary Shares
Arm Holdings’ revenue nearly doubled from 2.03B in 2021 to 4.01B in 2025, with net income rising from 388M to 792M. Margins remained robust, especially gross margin near 95%, indicating strong cost control. The 2025 fiscal year showed a favorable acceleration in growth, with net margin and earnings per share improving significantly, reflecting enhanced profitability and operational efficiency.
Marvell Technology, Inc.
Marvell’s revenue increased steadily from 2.97B in 2021 to 5.77B in 2025, but net income remained negative, widening from -277M to -885M. Despite a stable gross margin around 41%, EBIT and net margins were unfavorable, with losses deepening in recent years. The 2025 results indicate continued challenges in profitability, with operating income and net income both significantly negative.
Which one has the stronger fundamentals?
Arm Holdings demonstrates stronger fundamentals with favorable trends in revenue growth, profit margins, and net income, supported by effective cost management and improving earnings. In contrast, Marvell shows weaker fundamentals due to persistent net losses, negative EBIT margins, and unfavorable income statement growth metrics, despite steady revenue increases. Arm’s overall income statement evaluation is clearly more positive.
Financial Ratios Comparison
The table below presents the most recent key financial ratios for Arm Holdings plc (ARM) and Marvell Technology, Inc. (MRVL) based on their FY 2025 data, facilitating a straightforward comparison of their financial health and performance.
| Ratios | Arm Holdings plc (ARM) | Marvell Technology, Inc. (MRVL) |
|---|---|---|
| ROE | 11.58% | -6.59% |
| ROIC | 10.28% | -3.88% |
| P/E | 141.58 | -110.37 |
| P/B | 16.40 | 7.27 |
| Current Ratio | 5.20 | 1.54 |
| Quick Ratio | 5.20 | 1.03 |
| D/E | 0.05 | 0.32 |
| Debt-to-Assets | 3.99% | 21.50% |
| Interest Coverage | 0 | -3.80 |
| Asset Turnover | 0.45 | 0.29 |
| Fixed Asset Turnover | 5.61 | 5.56 |
| Payout Ratio | 0 | -23.45% |
| Dividend Yield | 0.00% | 0.21% |
Interpretation of the Ratios
Arm Holdings plc American Depositary Shares
Arm’s financial ratios present a mixed picture with strengths in net margin (19.77%) and low debt levels (debt-to-equity 0.05), indicating financial stability. However, unfavorable metrics such as a high PE ratio (141.58) and a low return on invested capital (10.28%) suggest valuation and efficiency concerns. The company does not pay dividends, likely focusing on reinvestment and growth.
Marvell Technology, Inc.
Marvell shows multiple unfavorable ratios, including a negative net margin (-15.35%) and return on equity (-6.59%), signaling operational and profitability challenges. Positive aspects include a reasonable current ratio (1.54) and moderate debt levels (debt-to-assets 21.5%). Marvell pays a modest dividend (0.21% yield), but coverage may be strained given negative earnings.
Which one has the best ratios?
Arm Holdings displays a slightly unfavorable overall ratio profile, while Marvell’s ratios are generally unfavorable, reflecting weaker profitability and operational performance. Arm’s stronger margin and lower leverage provide more financial stability despite valuation concerns, whereas Marvell faces greater risks with ongoing losses and dividend sustainability.
Strategic Positioning
This section compares the strategic positioning of Arm Holdings plc American Depositary Shares (ARM) and Marvell Technology, Inc. (MRVL) regarding market position, key segments, and exposure to technological disruption:
Arm Holdings plc American Depositary Shares
- Leading semiconductor IP licensor with high market cap and strong global presence but high beta indicating volatility.
- Focuses on licensing microprocessors, graphics IP, and software tools, targeting automotive, computing infrastructure, consumer tech, and IoT.
- Exposure mainly through intellectual property licensing, less direct manufacturing risk but vulnerable to shifts in semiconductor design trends.
Marvell Technology, Inc.
- Established semiconductor designer with lower market cap and moderate beta, operating in diverse global markets.
- Diverse product portfolio including Ethernet solutions, processors, ASICs, storage controllers, and networking products across multiple industries.
- Faces technological disruption risks across analog, mixed-signal, digital processing, and storage markets, requiring continuous innovation.
ARM vs MRVL Positioning
ARM’s strategy centers on licensing intellectual property with a concentrated business model in semiconductor design, offering stable yet volatile returns. MRVL pursues a diversified product approach across multiple segments, potentially spreading risks but facing challenges in maintaining profitability.
Which has the best competitive advantage?
Both companies are currently shedding value with ROIC below WACC; ARM shows stable profitability while MRVL’s profitability is declining, indicating neither presently holds a strong economic moat based on recent performance.
Stock Comparison
The stock price movements over the past 12 months highlight contrasting trajectories for Arm Holdings plc American Depositary Shares and Marvell Technology, Inc., with notable volatility and shifts in trading volumes influencing their performance.
Trend Analysis
Arm Holdings plc experienced a bearish trend over the past year with a price decline of 21.17%, showing deceleration and high volatility with a standard deviation of 19.31. The stock hit a high of 181.19 and a low of 87.19.
Marvell Technology, Inc. showed a bullish trend with an 18.94% price increase over the same period but also faced deceleration and slightly lower volatility at 16.46 standard deviation, reaching a high of 124.76 and a low of 49.43.
Comparing both, Marvell Technology, Inc. delivered the highest market performance with a positive price change, whereas Arm Holdings faced a significant decline, indicating divergent investor sentiment and market dynamics.
Target Prices
The consensus target prices for Arm Holdings plc and Marvell Technology, Inc. indicate optimistic growth potential from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Arm Holdings plc American Depositary Shares | 210 | 120 | 166 |
| Marvell Technology, Inc. | 156 | 80 | 117 |
Analysts expect Arm Holdings’ stock to rise significantly from its current price of $105.11, while Marvell Technology shows moderate upside potential above its $80.38 market price.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Arm Holdings plc American Depositary Shares (ARM) and Marvell Technology, Inc. (MRVL):
Rating Comparison
ARM Rating
- Rating: B, considered very favorable overall.
- Discounted Cash Flow Score: 3, moderate valuation.
- ROE Score: 3, moderate efficiency in equity returns.
- ROA Score: 4, favorable asset utilization.
- Debt To Equity Score: 4, favorable financial risk.
- Overall Score: 3, moderate overall financial standing.
MRVL Rating
- Rating: B+, also very favorable overall.
- Discounted Cash Flow Score: 3, moderate valuation.
- ROE Score: 4, favorable efficiency in equity returns.
- ROA Score: 5, very favorable asset utilization.
- Debt To Equity Score: 2, moderate financial risk.
- Overall Score: 3, moderate overall financial standing.
Which one is the best rated?
Based strictly on provided data, MRVL holds a slightly better rating (B+ vs. B) with higher ROE and ROA scores, indicating stronger profitability and asset use efficiency. ARM scores better on debt management, showing lower financial risk.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Arm Holdings plc and Marvell Technology, Inc.:
Arm Holdings plc Scores
- Altman Z-Score: 32.43, indicating a safe zone, very low bankruptcy risk.
- Piotroski Score: 7, categorized as strong financial health.
Marvell Technology Scores
- Altman Z-Score: 6.76, indicating a safe zone, low bankruptcy risk.
- Piotroski Score: 7, categorized as strong financial health.
Which company has the best scores?
Both Arm Holdings plc and Marvell Technology, Inc. have Altman Z-Scores in the safe zone and identical Piotroski Scores of 7, indicating strong financial health. Arm Holdings shows a notably higher Altman Z-Score, suggesting comparatively lower bankruptcy risk.
Grades Comparison
Here is the grades comparison for Arm Holdings plc American Depositary Shares and Marvell Technology, Inc.:
Arm Holdings plc American Depositary Shares Grades
The following table shows recent reliable grades from established grading companies for Arm Holdings plc ADS:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B of A Securities | Downgrade | Neutral | 2026-01-13 |
| B of A Securities | Maintain | Buy | 2025-12-16 |
| Goldman Sachs | Downgrade | Sell | 2025-12-15 |
| Loop Capital | Maintain | Buy | 2025-11-12 |
| TD Cowen | Maintain | Buy | 2025-11-06 |
| Rosenblatt | Maintain | Buy | 2025-11-06 |
| Wells Fargo | Maintain | Overweight | 2025-11-06 |
| Mizuho | Maintain | Outperform | 2025-11-06 |
| Barclays | Maintain | Overweight | 2025-11-06 |
| UBS | Maintain | Buy | 2025-11-06 |
The overall trend for Arm shows predominantly Buy and Overweight grades, with a recent downgrade to Neutral and Sell indicating some caution among analysts.
Marvell Technology, Inc. Grades
The following table presents recent reliable grades from recognized grading companies for Marvell Technology, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Rosenblatt | Maintain | Buy | 2026-01-07 |
| Melius Research | Upgrade | Buy | 2026-01-05 |
| Benchmark | Downgrade | Hold | 2025-12-08 |
| B. Riley Securities | Maintain | Buy | 2025-12-03 |
| JP Morgan | Maintain | Overweight | 2025-12-03 |
| Susquehanna | Maintain | Positive | 2025-12-03 |
| Benchmark | Maintain | Buy | 2025-12-03 |
| Oppenheimer | Maintain | Outperform | 2025-12-03 |
| Stifel | Maintain | Buy | 2025-12-03 |
| Rosenblatt | Maintain | Buy | 2025-12-03 |
Marvell displays a strong consensus of Buy and Overweight ratings with only one Hold downgrade, indicating sustained positive analyst sentiment.
Which company has the best grades?
Marvell Technology, Inc. has received generally stronger and more consistent Buy and Outperform grades compared to Arm Holdings plc, which faced recent downgrades. This suggests a more bullish analyst outlook for Marvell, potentially impacting investor confidence and portfolio positioning accordingly.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Arm Holdings plc (ARM) and Marvell Technology, Inc. (MRVL), based on their most recent financial and operational data.
| Criterion | Arm Holdings plc (ARM) | Marvell Technology, Inc. (MRVL) |
|---|---|---|
| Diversification | Moderate: Revenue mainly from Licensing and Royalties (~$4.0B total in 2025) | High: Diverse segments including Data Center ($4.16B), Carrier Infrastructure, Automotive, Consumer, Enterprise Networking |
| Profitability | Positive net margin (19.77%), but unfavorable ROIC vs WACC (-14.0%), indicating value destruction | Negative net margin (-15.35%), declining ROIC (-3.88%), signaling value destruction and deteriorating profitability |
| Innovation | Strong IP licensing business model with steady royalty growth | Innovation in diverse tech sectors, but financials reflect challenges impacting returns |
| Global presence | Extensive global licensing network supporting semiconductor designs worldwide | Global reach across multiple market segments with significant data center exposure |
| Market Share | Leading position in semiconductor IP licensing | Significant market share in data center and networking chips, but competitive pressures evident |
Key takeaways: ARM benefits from a focused licensing model with solid royalty growth but struggles to convert this into value-creating returns. MRVL shows broader market exposure and product diversification yet faces profitability challenges and declining returns, raising caution for investors. Both companies require careful risk assessment before investment.
Risk Analysis
Below is a comparative table outlining key risks for Arm Holdings plc (ARM) and Marvell Technology, Inc. (MRVL) based on the most recent data from 2025.
| Metric | Arm Holdings plc (ARM) | Marvell Technology, Inc. (MRVL) |
|---|---|---|
| Market Risk | High beta at 4.36 indicates high volatility and sensitivity to market swings. | Moderate beta at 1.95 suggests moderate market risk exposure. |
| Debt level | Very low debt-to-equity ratio at 0.05, indicating low financial leverage risk. | Moderate debt-to-equity ratio at 0.32, higher leverage but manageable. |
| Regulatory Risk | Operates globally including China and Taiwan; exposed to international regulatory changes. | Global operations including China and Southeast Asia pose regulatory compliance challenges. |
| Operational Risk | Dependence on semiconductor licensing with moderate asset turnover (0.45) and high fixed asset efficiency. | Negative net margin and return on equity reflect operational challenges and profitability risks. |
| Environmental Risk | Industry exposure to environmental regulations on semiconductor manufacturing. | Similar industry exposure with potential impact from sustainability policies. |
| Geopolitical Risk | Significant exposure to geopolitical tensions in Asia-Pacific regions. | Similar geopolitical exposure, with operations spread across multiple sensitive regions. |
In synthesis, ARM faces significant market volatility risk due to its high beta and geopolitical exposure but benefits from a very strong balance sheet with minimal debt. MRVL struggles with operational profitability and moderate leverage, making it more vulnerable to economic downturns. Both companies share geopolitical and regulatory risks tied to their global semiconductor operations, with these factors likely to have the most impactful influence on their near-term performance.
Which Stock to Choose?
Arm Holdings plc (ARM) shows strong income growth with a 23.94% revenue rise in 2025 and favorable profitability metrics, including a 19.77% net margin. Its financial ratios are mixed, with solid debt management but some unfavorable valuation multiples and asset turnover. The company holds a very favorable B rating but is shedding value according to its ROIC versus WACC assessment.
Marvell Technology, Inc. (MRVL) displays moderate revenue growth at 4.71% in 2025 but suffers from unfavorable profitability, including a -15.35% net margin and negative returns on equity and assets. Its financial ratios reveal several weaknesses, though some liquidity and leverage metrics are favorable. MRVL holds a very favorable B+ rating but exhibits a very unfavorable economic moat with declining profitability.
Investors focused on growth and income quality might find ARM’s improving income statement and stable rating more appealing, while those willing to tolerate higher risk for potential turnaround opportunities could view MRVL’s current valuation and moderate liquidity as points of interest. The choice may depend on the investor’s risk tolerance and preference for stability versus recovery potential.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Arm Holdings plc American Depositary Shares and Marvell Technology, Inc. to enhance your investment decisions:
