Arm Holdings plc American Depositary Shares (ARM)vsNorthrop Grumman Corporation (NOC)
ARM
Arm Holdings plc American Depositary Shares
$213.27
-0.02%
TECHNOLOGY · Cap: $252.01B
NOC
Northrop Grumman Corporation
$549.52
-0.50%
INDUSTRIALS · Cap: $78.44B
Smart Verdict
WallStSmart Research — data-driven comparison
Northrop Grumman Corporation generates 807% more annual revenue ($42.37B vs $4.67B). ARM leads profitability with a 17.2% profit margin vs 10.8%. ARM appears more attractively valued with a PEG of 2.45. NOC earns a higher WallStSmart Score of 63/100 (C+).
ARM
Buy51
out of 100
Grade: C-
NOC
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ARM.
Margin of Safety
-60.9%
Fair Value
$421.87
Current Price
$549.52
$127.65 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
Earnings expanding 84.9% YoY
Large-cap with strong market position
Every $100 of equity generates 29 in profit
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 29.1x book value
Earnings declined 12.3%
4.4% revenue growth
Grey zone — moderate risk
Elevated debt levels
Weak financial health signals
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 : NOC
The strongest argument for NOC centers on EPS Growth, Market Cap, Return on Equity.
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 : NOC
The primary concerns for NOC are Revenue Growth, Altman Z-Score, Debt/Equity.
Key Dynamics to Monitor
ARM profiles as a growth stock while NOC 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
NOC scores higher overall (63/100 vs 51/100). 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.
Northrop Grumman Corporation
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Northrop Grumman Corporation (NYSE: NOC) is an American multinational aerospace and defense technology company.
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