META vs. ARM

Last updated Jun 13, 2026

META (Meta Platforms, Inc.) and ARM (Arm Holdings plc American Depositary Shares) are both stocks. META operates in Internet Content & Information (Communication Services), while ARM operates in Semiconductors (Technology). Over the past year, META returned -16.71% vs 180.94% for ARM. At a 0.38 correlation, their price movements are largely independent.

Performance

META vs. ARM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Meta Platforms, Inc. (META) and Arm Holdings plc American Depositary Shares (ARM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, META achieves a -14.03% return, which is significantly lower than ARM's 248.38% return.

META

• 1D: -0.26%
• 1M: -8.32%
• YTD: -14.03%
• 6M: -11.84%
• 1Y: -16.71%
• 3Y*: 28.18%
• 5Y*: 11.52%
• 10Y*: 17.39%

ARM

• 1D: 11.27%
• 1M: 66.66%
• YTD: 248.38%
• 6M: 190.94%
• 1Y: 180.94%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

META vs. ARM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
META Meta Platforms, Inc.	-14.03%	13.09%	66.05%	16.03%
ARM Arm Holdings plc American Depositary Shares	248.38%	-11.39%	64.16%	33.95%

Correlation

The correlation between META and ARM is 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.26
Correlation (All Time) Calculated using the full available price history since Sep 14, 2023	0.38

The correlation between META and ARM shifts across timeframes, from 0.26 (1 year) to 0.38 (all time), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap META : $1.45T ARM : $406.71B
EPS META : $27.47 ARM : $0.85
PE Ratio META : 20.64 ARM : 449.79
PEG Ratio META : 0.85 ARM : 15.43
PS Ratio META : 6.78 ARM : 82.64
PB Ratio META : 5.97 ARM : 49.08
Total Revenue (TTM) META : $214.96B ARM : $4.92B
Gross Profit (TTM) META : $176.14B ARM : $4.66B
EBITDA (TTM) META : $106.31B ARM : $1.37B

Return for Risk

META vs. ARM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

META

META Risk / Return Rank: 21
META Sharpe Ratio Rank: 20
META Sortino Ratio Rank: 20
META Omega Ratio Rank: 20
META Calmar Ratio Rank: 24
META Martin Ratio Rank: 18

ARM

ARM Risk / Return Rank: 90
ARM Sharpe Ratio Rank: 94
ARM Sortino Ratio Rank: 91
ARM Omega Ratio Rank: 90
ARM Calmar Ratio Rank: 90
ARM Martin Ratio Rank: 86

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

META vs. ARM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Meta Platforms, Inc. (META) and Arm Holdings plc American Depositary Shares (ARM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	META	ARM	Difference
Sharpe ratio: Return per unit of total volatility	-0.51	2.55	-3.06
Sortino ratio: Return per unit of downside risk	-0.54	3.16	-3.70
Omega ratio: Gain probability vs. loss probability	0.93	1.40	-0.47
Calmar ratio: Return relative to maximum drawdown	-0.54	4.24	-4.78
Martin ratio: Return relative to average drawdown	-1.12	8.33	-9.45

META vs. ARM - Sharpe Ratio Comparison

The current META Sharpe Ratio is -0.51, which is lower than the ARM Sharpe Ratio of 2.55. The chart below compares the historical Sharpe Ratios of META and ARM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

META vs. ARM - Drawdown Comparison

The maximum META drawdown since its inception was -76.74%, which is greater than ARM's maximum drawdown of -53.97%. Use the drawdown chart below to compare losses from any high point for META and ARM.

Drawdown Indicators

	META	ARM	Difference
Max Drawdown Largest peak-to-trough decline	-76.74%	-53.97%	-22.77%
Max Drawdown (1Y) Largest decline over 1 year	-33.30%	-41.47%	+8.17%
Max Drawdown (3Y) Largest decline over 3 years	-34.15%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-76.74%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-76.74%	—	—
Current Drawdown Current decline from peak	-28.06%	-7.53%	-20.53%
Average Drawdown Average peak-to-trough decline	-15.83%	-21.33%	+5.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	16.06%	21.07%	-5.01%

Volatility

META vs. ARM - Volatility Comparison

The current volatility for Meta Platforms, Inc. (META) is 10.17%, while Arm Holdings plc American Depositary Shares (ARM) has a volatility of 37.22%. This indicates that META experiences smaller price fluctuations and is considered to be less risky than ARM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	META	ARM	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.17%	37.22%	-27.05%
Volatility (6M) Calculated over the trailing 6-month period	26.91%	58.04%	-31.13%
Volatility (1Y) Calculated over the trailing 1-year period	35.52%	68.92%	-33.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	44.04%	76.58%	-32.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	38.67%	76.58%	-37.91%

Dividends

META vs. ARM - Dividend Comparison

META's dividend yield for the trailing twelve months is around 0.37%, while ARM has not paid dividends to shareholders.

Position	TTM	2025	2024
ARM Arm Holdings plc American Depositary Shares	0.00%	0.00%	0.00%
META Meta Platforms, Inc.	0.37%	0.32%	0.34%

Financials

META vs. ARM - Profitability Comparison

The chart below illustrates the profitability comparison between Meta Platforms, Inc. and Arm Holdings plc American Depositary Shares over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

META - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Meta Platforms, Inc. reported a gross profit of 46.09B and revenue of 56.31B. Therefore, the gross margin over that period was 81.9%.

ARM - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Arm Holdings plc American Depositary Shares reported a gross profit of 1.39B and revenue of 1.49B. Therefore, the gross margin over that period was 93.1%.

META - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Meta Platforms, Inc. reported an operating income of 22.87B and revenue of 56.31B, resulting in an operating margin of 40.6%.

ARM - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Arm Holdings plc American Depositary Shares reported an operating income of 440.00M and revenue of 1.49B, resulting in an operating margin of 29.5%.

META - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Meta Platforms, Inc. reported a net income of 26.77B and revenue of 56.31B, resulting in a net margin of 47.5%.

ARM - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Arm Holdings plc American Depositary Shares reported a net income of 313.00M and revenue of 1.49B, resulting in a net margin of 21.0%.

Frequently Asked Questions

Can I hold both META and ARM in my portfolio?

META and ARM have a correlation of 0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, META or ARM?

ARM has higher volatility (37.22%) compared to META (10.17%). In terms of maximum drawdown, META dropped -76.74% vs ARM's -53.97%.

Which has better risk-adjusted returns?

ARM currently has the higher Sharpe Ratio (2.55 vs -0.51), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.