Arm Holdings plc American Depositary Shares (ARM)vsPhilip Morris International Inc (PM)
ARM
Arm Holdings plc American Depositary Shares
$157.07
+16.38%
TECHNOLOGY · Cap: $143.33B
PM
Philip Morris International Inc
$165.50
+0.99%
CONSUMER DEFENSIVE · Cap: $255.09B
Smart Verdict
WallStSmart Research — data-driven comparison
Philip Morris International Inc generates 770% more annual revenue ($40.65B vs $4.67B). PM leads profitability with a 27.9% profit margin vs 17.2%. PM appears more attractively valued with a PEG of 1.86. PM earns a higher WallStSmart Score of 70/100 (B-).
ARM
Buy52
out of 100
Grade: C-
PM
Strong Buy70
out of 100
Grade: B-
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
+17.9%
Fair Value
$201.54
Current Price
$165.50
$36.04 discount
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
Mega-cap, among the largest globally
Strong operational efficiency at 32.9%
Keeps 28 of every $100 in revenue as profit
Generating 4.3B in free cash flow
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
ROE of 0.0% — below average capital efficiency
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 : PM
The strongest argument for PM centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 27.9% and operating margin at 32.9%.
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 : PM
The primary concerns for PM are PEG Ratio, Return on Equity.
Key Dynamics to Monitor
ARM profiles as a growth stock while PM is a mature play — different risk/reward profiles.
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.
PM generates stronger free cash flow (4.3B), providing more financial flexibility.
Bottom Line
PM scores higher overall (70/100 vs 52/100), backed by strong 27.9% margins. 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.
Philip Morris International Inc
CONSUMER DEFENSIVE · TOBACCO · USA
Philip Morris International Inc. (PMI) is a Swiss-American multinational cigarette and tobacco manufacturing company, with products sold in over 180 countries. The most recognized and best selling product of the company is Marlboro.
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