Financial Survey: Sparton (SPA) versus ARM (ARMH)
Sparton (NYSE: SPA) and ARM (NASDAQ:ARMH) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.
This is a summary of current recommendations and price targets for Sparton and ARM, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Earnings and Valuation
This table compares Sparton and ARM’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sparton||$397.56 million||0.57||$1.31 million||($0.17)||-136.47|
Sparton has higher revenue and earnings than ARM. Sparton is trading at a lower price-to-earnings ratio than ARM, indicating that it is currently the more affordable of the two stocks.
ARM pays an annual dividend of $0.34 per share and has a dividend yield of 0.5%. Sparton does not pay a dividend. ARM pays out 35.4% of its earnings in the form of a dividend.
Institutional & Insider Ownership
67.5% of Sparton shares are owned by institutional investors. Comparatively, 19.7% of ARM shares are owned by institutional investors. 5.0% of Sparton shares are owned by insiders. Comparatively, 3.0% of ARM shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Sparton and ARM’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
ARM beats Sparton on 7 of the 11 factors compared between the two stocks.
Sparton Corporation is a provider of design, development and manufacturing services for electromechanical devices, as well as engineered products complementary to the same electromechanical value stream. The Company operates through two segments: Manufacturing & Design Services (MDS) and Engineered Components & Products (ECP). The Company serves the medical and biotechnology, military and aerospace, and industrial and commercial markets. Its products and services include offerings for original equipment manufacturers (OEM) and emerging technology (ET) customers, which utilize microprocessor-based systems, such as transducers, printed circuit boards and assemblies, and sensors, as well as development and design engineering services. It develops and manufactures sonobuoys, which are anti-submarine warfare (ASW) devices. The Company also manufactures rugged flat panel display systems for military panel personal computer workstations, air traffic control and industrial applications.
ARM Holdings plc (ARM) is a company engaged in designing a range of inter-related intellectual property (IP), including microprocessors, Physical IP, and supporting software and tools. Its product offering includes 16/32/64-bit reduced instruction set computing (RISC) microprocessors, data engines, graphics processors, digital libraries, embedded memories, peripherals, software and development tools, as well as analog functions and high-speed connectivity products. The Company licenses and sells its technology and products to international electronics companies, which in turn manufacture, market and sell microprocessors, application-specific integrated circuits (ASICs), application-specific standard processors (ASSPs) and microcontrollers (MCUs) based on ARM’s technology to systems companies for incorporation into a range of end products. Its principal geographic markets are Europe, the United States and Asia Pacific.
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