Arm Holdings plc American Depositary Shares (ARM)vsCharles Schwab Corp (SCHW)
ARM
Arm Holdings plc American Depositary Shares
$157.07
+16.38%
TECHNOLOGY · Cap: $143.33B
SCHW
Charles Schwab Corp
$95.68
-0.72%
FINANCIAL SERVICES · Cap: $169.34B
Smart Verdict
WallStSmart Research — data-driven comparison
Charles Schwab Corp generates 412% more annual revenue ($23.92B vs $4.67B). SCHW leads profitability with a 37.0% profit margin vs 17.2%. SCHW appears more attractively valued with a PEG of 1.12. SCHW earns a higher WallStSmart Score of 75/100 (B+).
ARM
Buy52
out of 100
Grade: C-
SCHW
Strong Buy75
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
+56.0%
Fair Value
$217.62
Current Price
$95.68
$121.94 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
Keeps 37 of every $100 in revenue as profit
Strong operational efficiency at 49.7%
Conservative balance sheet, low leverage
Large-cap with strong market position
18.9% revenue growth
Earnings expanding 41.1% YoY
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 21.4x book value
Earnings declined 12.3%
Negative free cash flow — burning cash
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 : SCHW
The strongest argument for SCHW centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 37.0% and operating margin at 49.7%. Revenue growth of 18.9% demonstrates continued momentum.
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 : SCHW
The primary concerns for SCHW are Free Cash Flow.
Key Dynamics to Monitor
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.
ARM generates stronger free cash flow (186M), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SCHW scores higher overall (75/100 vs 52/100), backed by strong 37.0% margins and 18.9% 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.
Charles Schwab Corp
FINANCIAL SERVICES · CAPITAL MARKETS · USA
The Charles Schwab Corporation is an American multinational financial services company. It offers banking, commercial banking, an electronic trading platform, and wealth management advisory services to both retail and institutional clients.
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