ARM HOLDINGS PLC /UK vs United Microelectronics Corporation, two Semiconductors stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Both multiples look absurd on their face, 393.6 times at Arm and 213.2 times at UMC, and both are telling the truth about different things. Arm's is a growth premium on suppressed earnings, a 97.9% gross margin royalty machine spending through its income statement toward AI licensing; UMC's is a trough artifact, a trailing-edge foundry whose earnings have compressed under commodity pricing, with a 0.05% free-cash yield to prove it. Arm holds no debt and a current ratio of 6; UMC is likewise unlevered. Neither price can be read off the ratio alone. The pair is a reminder that a triple-digit multiple is a symptom, and the diagnosis matters more than the number.
Comparison updated 2026-07-10.
| Metric | ARM | UMC |
|---|---|---|
| Price | $334.54 | $25.58 |
| Market cap | $357.6B | $311.4B |
| Sector | Semiconductors | Semiconductors |
| Stage | Growth | Growth |
| P/E | 393.6 | 213.2 |
| P/B | 43.16 | 27.92 |
| P/S | 72.69 | 43.56 |
| EV/EBITDA | 369.7 | 195.8 |
| Revenue growth | +23.3% | +8.9% |
| Gross margin | 97.8% | 32.3% |
| Operating margin | 29.4% | 22.0% |
| Net margin | 18.4% | 20.8% |
| Return on equity | 10.9% | 13.3% |
| Return on assets | 8.4% | 8.7% |
| Return on invested capital | 7.1% | 12.0% |
| FCF yield | 0.3% | 0.1% |
| Debt / equity | 0.00 | 0.00 |
| Current ratio | 6.00 | 2.45 |
| Altman Z (solvency) | 7.76 | 6.96 |
| Piotroski F (quality) | 6 / 9 | 6 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.