WallStSmart

Arm Holdings plc American Depositary Shares (ARM)vsBank of Montreal (BMO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Bank of Montreal generates 617% more annual revenue ($33.48B vs $4.67B). BMO leads profitability with a 27.1% profit margin vs 17.2%. BMO appears more attractively valued with a PEG of 1.56. BMO earns a higher WallStSmart Score of 73/100 (B).

ARM

Buy

51

out of 100

Grade: C-

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

BMO

Strong Buy

73

out of 100

Grade: B

Growth: 8.0Profit: 7.5Value: 5.7Quality: 5.0

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

BMO6 strengths · Avg: 8.7/10
Operating MarginProfitability
39.9%10/10

Strong operational efficiency at 39.9%

Market CapQuality
$109.28B9/10

Large-cap with strong market position

Profit MarginProfitability
27.1%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
17.6x8/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$6.95B8/10

Generating 7.0B in free cash flow

Areas to Watch

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%

BMO1 concerns · Avg: 4.0/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : BMO

The strongest argument for BMO centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 27.1% and operating margin at 39.9%.

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.

Bear Case : BMO

The primary concerns for BMO are PEG Ratio.

Key Dynamics to Monitor

ARM profiles as a growth stock while BMO is a mature play — different risk/reward profiles.

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

ARM is growing revenue faster at 26.3% — sustainability is the question.

BMO generates stronger free cash flow (7.0B), providing more financial flexibility.

Bottom Line

BMO scores higher overall (73/100 vs 51/100), backed by strong 27.1% 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 Montreal

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Bank of Montreal offers diversified financial services primarily in North America. The company is headquartered in Montreal, Canada.

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