Analog Devices Inc (ADI)vsArm Holdings plc American Depositary Shares (ARM)
ADI
Analog Devices Inc
$322.03
+0.06%
TECHNOLOGY · Cap: $157.12B
ARM
Arm Holdings plc American Depositary Shares
$157.07
+16.38%
TECHNOLOGY · Cap: $143.33B
Smart Verdict
WallStSmart Research — data-driven comparison
Analog Devices Inc generates 152% more annual revenue ($11.76B vs $4.67B). ADI leads profitability with a 23.0% profit margin vs 17.2%. ADI appears more attractively valued with a PEG of 0.77. ADI earns a higher WallStSmart Score of 75/100 (B).
ADI
Strong Buy75
out of 100
Grade: B
ARM
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-25.8%
Fair Value
$256.00
Current Price
$322.03
$66.03 premium
Margin of Safety
-2323.2%
Fair Value
$5.17
Current Price
$157.07
$151.90 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.1%
Revenue surging 30.4% year-over-year
Earnings expanding 116.7% YoY
Large-cap with strong market position
Keeps 23 of every $100 in revenue as profit
Growing faster than its price suggests
Safe zone — low bankruptcy risk
Large-cap with strong market position
Revenue surging 26.3% year-over-year
Areas to Watch
ROE of 7.9% — below average capital efficiency
Premium valuation, high expectations priced in
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 21.4x book value
Earnings declined 12.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : ADI
The strongest argument for ADI centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 23.0% and operating margin at 33.1%. Revenue growth of 30.4% demonstrates continued momentum.
Bull Case : ARM
The strongest argument for ARM centers on Altman Z-Score, Market Cap, Revenue Growth. Profitability is solid with margins at 17.2% and operating margin at 15.4%. Revenue growth of 26.3% demonstrates continued momentum.
Bear Case : ADI
The primary concerns for ADI are Return on Equity, P/E Ratio. A P/E of 58.8x leaves little room for execution misses.
Bear Case : ARM
The primary concerns for ARM are PEG Ratio, P/E Ratio, Price/Book. A P/E of 177.6x leaves little room for execution misses.
Key Dynamics to Monitor
ARM carries more volatility with a beta of 4.13 — expect wider price swings.
ADI is growing revenue faster at 30.4% — sustainability is the question.
ADI generates stronger free cash flow (1.3B), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ADI scores higher overall (75/100 vs 52/100), backed by strong 23.0% margins and 30.4% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Analog Devices Inc
TECHNOLOGY · SEMICONDUCTORS · USA
Analog Devices, Inc. (ADI), also known simply as Analog, is an American multinational semiconductor company specializing in data conversion, signal processing and power management technology, headquartered in Wilmington, Massachusetts.
Arm Holdings plc American Depositary Shares
TECHNOLOGY · SEMICONDUCTORS · USA
Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products.
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