WallStSmart

Arm Holdings plc American Depositary Shares (ARM)vsTrane Technologies plc (TT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Trane Technologies plc generates 362% more annual revenue ($21.60B vs $4.67B). ARM leads profitability with a 17.2% profit margin vs 13.4%. TT appears more attractively valued with a PEG of 2.39. TT earns a higher WallStSmart Score of 52/100 (C-).

ARM

Buy

51

out of 100

Grade: C-

Growth: 6.0Profit: 7.0Value: 3.0Quality: 7.8
Piotroski: 5/9Altman Z: 3.75

TT

Buy

52

out of 100

Grade: C-

Growth: 5.3Profit: 8.0Value: 4.3Quality: 5.5
Piotroski: 6/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARM3 strengths · Avg: 9.3/10
Market CapQuality
$223.36B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.7510/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
26.3%8/10

Revenue surging 26.3% year-over-year

TT2 strengths · Avg: 9.5/10
Return on EquityProfitability
36.6%10/10

Every $100 of equity generates 37 in profit

Market CapQuality
$107.57B9/10

Large-cap with strong market position

Areas to Watch

ARM4 concerns · Avg: 2.0/10
PEG RatioValuation
2.532/10

Expensive relative to growth rate

P/E RatioValuation
276.7x2/10

Premium valuation, high expectations priced in

Price/BookValuation
28.8x2/10

Trading at 28.8x book value

EPS GrowthGrowth
-12.3%2/10

Earnings declined 12.3%

TT4 concerns · Avg: 3.5/10
PEG RatioValuation
2.394/10

Expensive relative to growth rate

P/E RatioValuation
37.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
12.6x4/10

Trading at 12.6x book value

EPS GrowthGrowth
-2.1%2/10

Earnings declined 2.1%

Comparative Analysis Report

WallStSmart Research

Bull 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 : TT

The strongest argument for TT centers on Return on Equity, Market Cap.

Bear Case : ARM

The primary concerns for ARM are PEG Ratio, P/E Ratio, Price/Book. A P/E of 276.7x leaves little room for execution misses.

Bear Case : TT

The primary concerns for TT are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

ARM profiles as a growth stock while TT is a value play — different risk/reward profiles.

ARM carries more volatility with a beta of 3.34 — expect wider price swings.

ARM is growing revenue faster at 26.3% — sustainability is the question.

TT generates stronger free cash flow (542M), providing more financial flexibility.

Bottom Line

TT scores higher overall (52/100 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.

Trane Technologies plc

INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA

Trane Technologies plc is an American Irish domiciled diversified industrial manufacturing company. It is headquartered near Dublin, Ireland.

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