Arm Holdings plc American Depositary Shares (ARM)vsBank of America Corp (BAC)
ARM
Arm Holdings plc American Depositary Shares
$157.07
+16.38%
TECHNOLOGY · Cap: $143.33B
BAC
Bank of America Corp
$48.75
+1.27%
FINANCIAL SERVICES · Cap: $351.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Bank of America Corp generates 2200% more annual revenue ($107.42B vs $4.67B). BAC leads profitability with a 28.4% profit margin vs 17.2%. BAC appears more attractively valued with a PEG of 0.89. BAC earns a higher WallStSmart Score of 80/100 (B+).
ARM
Buy52
out of 100
Grade: C-
BAC
Strong Buy80
out of 100
Grade: B+
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
+68.6%
Fair Value
$155.14
Current Price
$48.75
$106.39 discount
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
Reasonable price relative to book value
Strong operational efficiency at 41.6%
Keeps 28 of every $100 in revenue as profit
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 21.4x book value
Earnings declined 12.3%
Elevated debt levels
Negative free cash flow — burning cash
Distress zone — elevated risk
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 : BAC
The strongest argument for BAC centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 28.4% and operating margin at 41.6%. PEG of 0.89 suggests the stock is reasonably priced for its growth.
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 : BAC
The primary concerns for BAC are Debt/Equity, Free Cash Flow, Altman Z-Score.
Key Dynamics to Monitor
ARM profiles as a growth stock while BAC is a mature 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.
ARM generates stronger free cash flow (186M), providing more financial flexibility.
Bottom Line
BAC scores higher overall (80/100 vs 52/100), backed by strong 28.4% margins. 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.
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.
Bank of America Corp
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
The Bank of America Corporation is an American multinational investment bank and financial services holding company headquartered in Charlotte, North Carolina. Founded in San Francisco, Bank of America was formed through NationsBank's acquisition of BankAmerica in 1998. It is the second largest banking institution in the United States, after JPMorgan Chase, and the eighth largest bank in the world. Bank of America is one of the Big Four banking institutions of the United States. It services approximately 10 percent of all American bank deposits, in direct competition with JPMorgan Chase, Citigroup and Wells Fargo. Its primary financial services revolve around commercial banking, wealth management, and investment banking.
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