Arm Holdings plc American Depositary Shares (ARM)vsBank of Montreal (BMO)
ARM
Arm Holdings plc American Depositary Shares
$157.07
+16.38%
TECHNOLOGY · Cap: $143.33B
BMO
Bank of Montreal
$136.39
-0.53%
FINANCIAL SERVICES · Cap: $94.86B
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 1.46. BMO earns a higher WallStSmart Score of 75/100 (B+).
ARM
Buy52
out of 100
Grade: C-
BMO
Strong Buy75
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
+57.3%
Fair Value
$336.32
Current Price
$136.39
$199.93 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
Strong operational efficiency at 39.9%
Large-cap with strong market position
Keeps 27 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Generating 7.0B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 21.4x book value
Earnings declined 12.3%
No major concerns identified
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 : 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%. PEG of 1.46 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 : BMO
No major red flags identified for BMO, but monitor valuation.
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 4.13 — 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 (75/100 vs 52/100), 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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