WallStSmart

Arm Holdings plc American Depositary Shares (ARM)vsBP PLC ADR (BP)

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Smart Verdict

WallStSmart Research — data-driven comparison

BP PLC ADR generates 4032% more annual revenue ($193.00B vs $4.67B). ARM leads profitability with a 17.2% profit margin vs 1.7%. BP appears more attractively valued with a PEG of 0.05. BP earns a higher WallStSmart Score of 65/100 (B-).

ARM

Buy

51

out of 100

Grade: C-

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

BP

Strong Buy

65

out of 100

Grade: B-

Growth: 6.0Profit: 5.5Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ARM.

BPUndervalued (+26.9%)

Margin of Safety

+26.9%

Fair Value

$52.77

Current Price

$43.34

$9.43 discount

UndervaluedFair: $52.77Overvalued

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

BP3 strengths · Avg: 9.7/10
PEG RatioValuation
0.0510/10

Growing faster than its price suggests

EPS GrowthGrowth
474.5%10/10

Earnings expanding 474.5% YoY

Market CapQuality
$114.92B9/10

Large-cap with strong market position

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%

BP4 concerns · Avg: 3.5/10
P/E RatioValuation
36.0x4/10

Premium valuation, high expectations priced in

Price/BookValuation
8.4x4/10

Trading at 8.4x book value

Return on EquityProfitability
5.8%3/10

ROE of 5.8% — below average capital efficiency

Profit MarginProfitability
1.7%3/10

1.7% margin — thin

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 : BP

The strongest argument for BP centers on PEG Ratio, EPS Growth, Market Cap. Revenue growth of 11.6% demonstrates continued momentum. PEG of 0.05 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 279.2x leaves little room for execution misses.

Bear Case : BP

The primary concerns for BP are P/E Ratio, Price/Book, Return on Equity. Thin 1.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

ARM profiles as a growth stock while BP is a value 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.

ARM generates stronger free cash flow (186M), providing more financial flexibility.

Bottom Line

BP scores higher overall (65/100 vs 51/100) and 11.6% 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.

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.

BP PLC ADR

ENERGY · OIL & GAS INTEGRATED · USA

BP plc participates in the energy business globally. The company is headquartered in London, the United Kingdom.

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