Atomera (NASDAQ:ATOM) and ARM (NASDAQ:ARM) Head to Head Contrast

Atomera (NASDAQ:ATOM) and ARM (NASDAQ:ARM) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Institutional & Insider Ownership

30.8% of Atomera shares are held by institutional investors. Comparatively, 7.5% of ARM shares are held by institutional investors. 13.0% of Atomera shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Atomera and ARM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atomera	-15,555.37%	-90.84%	-78.02%
ARM	16.96%	15.56%	11.72%

Valuation and Earnings

This table compares Atomera and ARM”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atomera	$49,000.00	2,415.84	-$18.43 million	($0.67)	-5.61
ARM	$4.01 billion	37.54	$792.00 million	$0.66	215.74

ARM has higher revenue and earnings than Atomera. Atomera is trading at a lower price-to-earnings ratio than ARM, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and target prices for Atomera and ARM, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atomera	0	0	0	0	0.00
ARM	1	6	19	1	2.74

ARM has a consensus target price of $169.6667, indicating a potential upside of 19.16%. Given ARM’s stronger consensus rating and higher probable upside, analysts clearly believe ARM is more favorable than Atomera.

Volatility & Risk

Atomera has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, ARM has a beta of 4.17, meaning that its stock price is 317% more volatile than the S&P 500.

Summary

ARM beats Atomera on 12 of the 15 factors compared between the two stocks.

About Atomera

Atomera Incorporated engages in the developing, commercializing, and licensing proprietary processes and technologies for the semiconductor industry in North America and the Asia Pacific. The company's lead technology is the Mears Silicon Technology, a thin film of reengineered silicon that can be applied as a transistor channel enhancement to CMOS-type transistors. Its customers include foundries, integrated device manufacturers, fabless semiconductor manufacturers, original equipment manufacturers, and electronic design automation companies. The company was formerly known as Mears Technologies, Inc. and changed its name to Atomera Incorporated in January 2016. Atomera Incorporated was founded in 2001 and is headquartered in Los Gatos, California.

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.