Arm Holdings plc American Depositary Shares (ARM)vsNovartis AG ADR (NVS)
ARM
Arm Holdings plc American Depositary Shares
$213.27
-0.02%
TECHNOLOGY · Cap: $252.01B
NVS
Novartis AG ADR
$146.03
+0.44%
HEALTHCARE · Cap: $277.42B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 1111% more annual revenue ($56.58B vs $4.67B). NVS leads profitability with a 23.9% profit margin vs 17.2%. ARM appears more attractively valued with a PEG of 2.45. NVS earns a higher WallStSmart Score of 51/100 (C-).
ARM
Buy51
out of 100
Grade: C-
NVS
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ARM.
Margin of Safety
-51.8%
Fair Value
$110.12
Current Price
$146.03
$35.91 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 35 in profit
Strong operational efficiency at 30.5%
Keeps 24 of every $100 in revenue as profit
Generating 2.9B 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%
Grey zone — moderate risk
Expensive relative to growth rate
Revenue declined 0.7%
Earnings declined 9.3%
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 : NVS
The strongest argument for NVS centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 23.9% and operating margin at 30.5%.
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 : NVS
The primary concerns for NVS are Altman Z-Score, PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
ARM profiles as a growth stock while NVS is a declining 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.
NVS generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
ARM scores higher overall (51/100 vs 51/100), backed by strong 17.2% margins and 26.3% 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.
Novartis AG ADR
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Novartis AG researches, develops, manufactures and markets medical devices worldwide. The company is headquartered in Basel, Switzerland.
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