Analyzing Fujifilm (OTCMKTS:FUJIY) and ARM (NASDAQ:ARM)

ARM (NASDAQ:ARM) and Fujifilm (OTCMKTS:FUJIY) are both large-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.

Risk & Volatility

ARM has a beta of 3.78, meaning that its stock price is 278% more volatile than the S&P 500. Comparatively, Fujifilm has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.

Insider and Institutional Ownership

7.5% of ARM shares are owned by institutional investors. Comparatively, 0.0% of Fujifilm shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARM	$5.16 billion	43.57	$904.00 million	$0.97	216.84
Fujifilm	$22.30 billion	1.20	$1.83 billion	$1.27	8.47

Fujifilm has higher revenue and earnings than ARM. Fujifilm 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 Fujifilm’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%
Fujifilm	7.61%	6.91%	4.38%

Analyst Recommendations

This is a summary of current ratings for ARM and Fujifilm, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARM	1	7	18	1	2.70
Fujifilm	0	1	0	0	2.00

ARM presently has a consensus target price of $303.32, indicating a potential upside of 44.21%. Given ARM’s stronger consensus rating and higher possible upside, equities analysts plainly believe ARM is more favorable than Fujifilm.

Summary

ARM beats Fujifilm on 11 of the 14 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 Fujifilm

FUJIFILM Holdings Corporation develops, manufactures, sells, and services imaging, healthcare, materials, and business innovation solutions worldwide. The company's Healthcare segment provides products and services, such as medical devices, biomedical contract development and manufacturing organization, pharmaceutical, regenerative medicine, and cosmetics and supplements in the areas of prevention, diagnosis, and treatment. Its Materials segment offers inkjet digital presses and printing plates for printing industries, as well as industrial inkjet-related products and inkjet heads; storage media and archiving services to save and manage digital data volumes; and materials for industrials, including display and touch panel, semiconductor and image sensor, and functional film materials. The company's Business Innovation segment provides devices and services used in offices, including multi-function devices and printers; and provides problem-solving document services tailored to diverse business formats and roles, including system integration, cloud service, business process outsourcing, and others. Its Imaging segment offers color films, instant cameras, developing and printing systems, color papers, photo printing services, and others; and TV and cinema lenses, surveillance cameras, industrial lenses for production line inspection, and projectors. The company was incorporated in 1934 and is headquartered in Tokyo, Japan.