ARM vs CEVA

For growth investors, Arm Holdings plc American Depositary Shares (ARM) is the stronger pick with 23.

9% revenue growth year-over-year, versus 9. 8% for CEVA, Inc. (CEVA). Arm Holdings plc American Depositary Shares (ARM) offers the better valuation at 278. 5x trailing P/E (119. 1x forward), making it the more compelling value choice. Analysts rate Arm Holdings plc American Depositary Shares (ARM) a "Buy" — based on 27 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, CEVA, Inc.

is actually cheaper at 67. 3x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Arm Holdings plc American Depositary Shares (ARM) delivered a total return of +243.

8%, compared to -34. 0% for CEVA, Inc. (CEVA). Over 10 years, the gap is even starker: ARM returned +243. 8% versus CEVA's +29. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Arm Holdings plc American Depositary Shares (ARM) is the lower-risk stock at 2.

42β versus CEVA, Inc. 's 2. 76β — meaning CEVA is approximately 14% more volatile than ARM relative to the S&P 500. On balance sheet safety, CEVA, Inc. (CEVA) carries a lower debt/equity ratio of 2% versus 5% for Arm Holdings plc American Depositary Shares — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Arm Holdings plc American Depositary Shares (ARM) is pulling ahead at 23.

9% versus 9. 8% for CEVA, Inc. (CEVA). On earnings-per-share growth, the picture is similar: Arm Holdings plc American Depositary Shares grew EPS 158. 6% year-over-year, compared to 27. 5% for CEVA, Inc.. Over a 3-year CAGR, ARM leads at 14. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Arm Holdings plc American Depositary Shares (ARM) is the more profitable company, earning 19.

8% net margin versus -8. 2% for CEVA, Inc. — meaning it keeps 19. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ARM leads at 20. 6% versus -7. 1% for CEVA. At the gross margin level — before operating expenses — ARM leads at 94. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, CEVA, Inc.

(CEVA) trades at 67. 3x forward P/E versus 119. 1x for Arm Holdings plc American Depositary Shares — 51. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CEVA: -13. 0% to $29. 33.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Arm Holdings plc American Depositary Shares (ARM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+243.

8% 10Y return). CEVA, Inc. (CEVA) carries a higher beta of 2. 76 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ARM: +243. 8%, CEVA: +29. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: ARM is a large-cap high-growth stock; CEVA is a small-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.