Arm Holdings plc American Depositary Shares (ARM)vsASML Holding NV ADR (ASML)
ARM
Arm Holdings plc American Depositary Shares
$157.07
+16.38%
TECHNOLOGY · Cap: $143.33B
ASML
ASML Holding NV ADR
$1,399.42
+2.18%
TECHNOLOGY · Cap: $517.23B
Smart Verdict
WallStSmart Research — data-driven comparison
ASML Holding NV ADR generates 599% more annual revenue ($32.67B vs $4.67B). ASML leads profitability with a 29.4% profit margin vs 17.2%. ARM appears more attractively valued with a PEG of 1.90. ASML earns a higher WallStSmart Score of 56/100 (C).
ARM
Buy52
out of 100
Grade: C-
ASML
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-2323.2%
Fair Value
$5.17
Current Price
$157.07
$151.90 premium
Margin of Safety
-194.2%
Fair Value
$518.82
Current Price
$1399.42
$880.60 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Large-cap with strong market position
Revenue surging 26.3% year-over-year
Mega-cap, among the largest globally
Every $100 of equity generates 51 in profit
Strong operational efficiency at 35.3%
Generating 10.6B in free cash flow
Keeps 29 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 21.4x book value
Earnings declined 12.3%
Expensive relative to growth rate
4.9% revenue growth
Premium valuation, high expectations priced in
Trading at 23.7x book value
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : ASML
The strongest argument for ASML centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 29.4% and operating margin at 35.3%.
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.
Bear Case : ASML
The primary concerns for ASML are PEG Ratio, Revenue Growth, P/E Ratio. A P/E of 46.5x leaves little room for execution misses.
Key Dynamics to Monitor
ARM profiles as a growth stock while ASML is a value play — different risk/reward profiles.
ARM carries more volatility with a beta of 4.13 — expect wider price swings.
ARM is growing revenue faster at 26.3% — sustainability is the question.
ASML generates stronger free cash flow (10.6B), providing more financial flexibility.
Bottom Line
ASML scores higher overall (56/100 vs 52/100), backed by strong 29.4% margins. Both earn "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.
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.
ASML Holding NV ADR
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
ASML Holding NV develops, produces, markets, sells and services advanced semiconductor equipment systems consisting of lithography, metrology and inspection related systems for memory and logic chip manufacturers. The company is headquartered in Veldhoven, the Netherlands.
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