Arm Holdings plc American Depositary Shares (ARM)vsThe Coca-Cola Company (KO)
ARM
Arm Holdings plc American Depositary Shares
$213.27
-0.02%
TECHNOLOGY · Cap: $252.01B
KO
The Coca-Cola Company
$78.42
-0.01%
CONSUMER DEFENSIVE · Cap: $337.40B
Smart Verdict
WallStSmart Research — data-driven comparison
The Coca-Cola Company generates 955% more annual revenue ($49.28B vs $4.67B). KO leads profitability with a 27.8% profit margin vs 17.2%. ARM appears more attractively valued with a PEG of 2.45. KO earns a higher WallStSmart Score of 65/100 (B-).
ARM
Buy51
out of 100
Grade: C-
KO
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ARM.
Margin of Safety
-22.2%
Fair Value
$64.19
Current Price
$78.42
$14.23 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Revenue surging 26.3% year-over-year
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Strong operational efficiency at 35.1%
Keeps 28 of every $100 in revenue as profit
Generating 1.8B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 29.1x book value
Earnings declined 12.3%
Trading at 10.0x book value
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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 : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.8% and operating margin at 35.1%. Revenue growth of 12.1% demonstrates continued momentum.
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 : KO
The primary concerns for KO are Price/Book, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
ARM profiles as a growth stock while KO 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.
KO generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
KO scores higher overall (65/100 vs 51/100), backed by strong 27.8% margins and 12.1% 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.
The Coca-Cola Company
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
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