WallStSmart

Applovin Corp (APP)vsArm Holdings plc American Depositary Shares (ARM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Applovin Corp generates 32% more annual revenue ($6.16B vs $4.67B). APP leads profitability with a 64.3% profit margin vs 17.2%. APP appears more attractively valued with a PEG of 1.33. APP earns a higher WallStSmart Score of 77/100 (B+).

APP

Strong Buy

77

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 4.0Quality: 7.5
Piotroski: 5/9Altman Z: 3.74

ARM

Buy

51

out of 100

Grade: C-

Growth: 6.7Profit: 7.0Value: 3.7Quality: 7.8
Piotroski: 4/9Altman Z: 3.93
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

APPSignificantly Overvalued (-56.9%)

Margin of Safety

-56.9%

Fair Value

$242.94

Current Price

$468.55

$225.61 premium

UndervaluedFair: $242.94Overvalued

Intrinsic value data unavailable for ARM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

APP6 strengths · Avg: 10.0/10
Return on EquityProfitability
266.4%10/10

Every $100 of equity generates 266 in profit

Profit MarginProfitability
64.3%10/10

Keeps 64 of every $100 in revenue as profit

Operating MarginProfitability
78.1%10/10

Strong operational efficiency at 78.1%

Revenue GrowthGrowth
59.0%10/10

Revenue surging 59.0% year-over-year

EPS GrowthGrowth
113.0%10/10

Earnings expanding 113.0% YoY

Altman Z-ScoreHealth
3.7410/10

Safe zone — low bankruptcy risk

ARM3 strengths · Avg: 9.3/10
Market CapQuality
$252.01B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.9310/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
26.3%8/10

Revenue surging 26.3% year-over-year

Areas to Watch

APP3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.663/10

Elevated debt levels

P/E RatioValuation
43.3x2/10

Premium valuation, high expectations priced in

Price/BookValuation
74.3x2/10

Trading at 74.3x book value

ARM4 concerns · Avg: 2.5/10
PEG RatioValuation
2.454/10

Expensive relative to growth rate

P/E RatioValuation
279.2x2/10

Premium valuation, high expectations priced in

Price/BookValuation
29.1x2/10

Trading at 29.1x book value

EPS GrowthGrowth
-12.3%2/10

Earnings declined 12.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : APP

The strongest argument for APP centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 64.3% and operating margin at 78.1%. Revenue growth of 59.0% demonstrates continued momentum.

Bull Case : ARM

The strongest argument for ARM centers on Market Cap, Altman Z-Score, 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 : APP

The primary concerns for APP are Debt/Equity, P/E Ratio, Price/Book. A P/E of 43.3x leaves little room for execution misses. Debt-to-equity of 1.66 is elevated, increasing financial risk.

Bear Case : ARM

The primary concerns for ARM are PEG Ratio, P/E Ratio, Price/Book. A P/E of 279.2x leaves little room for execution misses.

Key Dynamics to Monitor

ARM carries more volatility with a beta of 3.41 — expect wider price swings.

APP is growing revenue faster at 59.0% — sustainability is the question.

APP generates stronger free cash flow (1.3B), providing more financial flexibility.

Monitor ADVERTISING AGENCIES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

APP scores higher overall (77/100 vs 51/100), backed by strong 64.3% margins and 59.0% 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.

Applovin Corp

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

AppLovin Corporation is committed to creating a software-based platform for mobile application developers to improve the marketing and monetization of their applications globally. The company is headquartered in Palo Alto, California.

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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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