Arm Holdings plc American Depositary Shares (ARM)vsRaytheon Technologies Corp (RTX)
ARM
Arm Holdings plc American Depositary Shares
$213.27
-0.02%
TECHNOLOGY · Cap: $252.01B
RTX
Raytheon Technologies Corp
$176.09
-0.39%
INDUSTRIALS · Cap: $238.07B
Smart Verdict
WallStSmart Research — data-driven comparison
Raytheon Technologies Corp generates 1835% more annual revenue ($90.37B vs $4.67B). ARM leads profitability with a 17.2% profit margin vs 8.0%. RTX appears more attractively valued with a PEG of 2.43. RTX earns a higher WallStSmart Score of 59/100 (C).
ARM
Buy51
out of 100
Grade: C-
RTX
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ARM.
Margin of Safety
-51.9%
Fair Value
$116.35
Current Price
$176.09
$59.74 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
Earnings expanding 32.5% YoY
Generating 1.2B 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%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
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 : RTX
The strongest argument for RTX centers on Market Cap, EPS Growth, Free Cash Flow.
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 : RTX
The primary concerns for RTX are PEG Ratio, P/E Ratio, Altman Z-Score.
Key Dynamics to Monitor
ARM profiles as a growth stock while RTX 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.
RTX generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
RTX scores higher overall (59/100 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.
Raytheon Technologies Corp
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. It is one of the largest aerospace, intelligence services providers, and defense manufacturers in the world by revenue and market capitalization. Raytheon Technologies (RTX) researches, develops, and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones.
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