Arm Holdings plc American Depositary Shares (ARM)vsCVS Health Corp (CVS)
ARM
Arm Holdings plc American Depositary Shares
$342.93
+4.91%
TECHNOLOGY · Cap: $365.53B
CVS
CVS Health Corp
$95.93
+1.17%
HEALTHCARE · Cap: $128.46B
Smart Verdict
WallStSmart Research — data-driven comparison
CVS Health Corp generates 8144% more annual revenue ($405.62B vs $4.92B). ARM leads profitability with a 18.4% profit margin vs 0.7%. CVS appears more attractively valued with a PEG of 0.28. CVS earns a higher WallStSmart Score of 65/100 (C+).
ARM
Buy63
out of 100
Grade: C+
CVS
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ARM.
Margin of Safety
+45.3%
Fair Value
$140.72
Current Price
$95.93
$44.79 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Strong operational efficiency at 29.5%
Revenue surging 20.1% year-over-year
Earnings expanding 47.9% YoY
Growing faster than its price suggests
Earnings expanding 63.1% YoY
Large-cap with strong market position
Reasonable price relative to book value
Generating 3.4B in free cash flow
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 44.0x book value
ROE of 3.8% — below average capital efficiency
0.7% margin — thin
Operating margin of 4.1%
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : ARM
The strongest argument for ARM centers on Market Cap, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 18.4% and operating margin at 29.5%. Revenue growth of 20.1% demonstrates continued momentum.
Bull Case : CVS
The strongest argument for CVS centers on PEG Ratio, EPS Growth, Market Cap. PEG of 0.28 suggests the stock is reasonably priced for its growth.
Bear Case : ARM
The primary concerns for ARM are Piotroski F-Score, PEG Ratio, P/E Ratio. A P/E of 397.9x leaves little room for execution misses.
Bear Case : CVS
The primary concerns for CVS are Return on Equity, Profit Margin, Operating Margin. A P/E of 44.2x leaves little room for execution misses. Thin 0.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
ARM profiles as a growth stock while CVS is a value play — different risk/reward profiles.
ARM carries more volatility with a beta of 3.79 — expect wider price swings.
ARM is growing revenue faster at 20.1% — sustainability is the question.
CVS generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
CVS scores higher overall (65/100 vs 63/100). 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.
CVS Health Corp
HEALTHCARE · HEALTHCARE PLANS · USA
CVS Health (previously CVS Corporation and CVS Caremark Corporation) is an American healthcare company that owns CVS Pharmacy, a retail pharmacy chain; CVS Caremark, a pharmacy benefits manager; Aetna, a health insurance provider, among many other brands. The company's headquarters is in Woonsocket, Rhode Island.
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