Arm Holdings plc American Depositary Shares (ARM)vsIntuitive Surgical Inc (ISRG)
ARM
Arm Holdings plc American Depositary Shares
$157.07
+16.38%
TECHNOLOGY · Cap: $143.33B
ISRG
Intuitive Surgical Inc
$469.98
-0.41%
HEALTHCARE · Cap: $167.61B
Smart Verdict
WallStSmart Research — data-driven comparison
Intuitive Surgical Inc generates 115% more annual revenue ($10.06B vs $4.67B). ISRG leads profitability with a 28.4% profit margin vs 17.2%. ARM appears more attractively valued with a PEG of 1.90. ISRG earns a higher WallStSmart Score of 62/100 (C+).
ARM
Buy52
out of 100
Grade: C-
ISRG
Buy62
out of 100
Grade: C+
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
-78.8%
Fair Value
$262.88
Current Price
$469.98
$207.10 premium
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 30.2%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
18.8% revenue growth
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 21.4x book value
Earnings declined 12.3%
Expensive relative to growth rate
Trading at 9.4x book value
Premium valuation, high expectations priced in
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 : ISRG
The strongest argument for ISRG centers on Operating Margin, Altman Z-Score, Market Cap. Profitability is solid with margins at 28.4% and operating margin at 30.2%. Revenue growth of 18.8% demonstrates continued momentum.
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 : ISRG
The primary concerns for ISRG are PEG Ratio, Price/Book, P/E Ratio. A P/E of 59.9x leaves little room for execution misses.
Key Dynamics to Monitor
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.
ISRG generates stronger free cash flow (730M), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ISRG scores higher overall (62/100 vs 52/100), backed by strong 28.4% margins and 18.8% revenue growth. 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.
Intuitive Surgical Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
Intuitive Surgical, Inc. is an American corporation that develops, manufactures, and markets robotic products designed to improve clinical outcomes of patients through minimally invasive surgery, most notably with the da Vinci Surgical System.
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