Arm Holdings plc American Depositary Shares (ARM)vsWestern Digital Corporation (WDC)
ARM
Arm Holdings plc American Depositary Shares
$213.27
-0.02%
TECHNOLOGY · Cap: $252.01B
WDC
Western Digital Corporation
$480.00
+3.47%
TECHNOLOGY · Cap: $159.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Western Digital Corporation generates 152% more annual revenue ($11.78B vs $4.67B). WDC leads profitability with a 55.3% profit margin vs 17.2%. WDC appears more attractively valued with a PEG of 0.43. WDC earns a higher WallStSmart Score of 79/100 (B+).
ARM
Buy51
out of 100
Grade: C-
WDC
Strong Buy79
out of 100
Grade: B+
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
Growing faster than its price suggests
Every $100 of equity generates 86 in profit
Keeps 55 of every $100 in revenue as profit
Strong operational efficiency at 37.0%
Revenue surging 45.5% year-over-year
Earnings expanding 482.9% YoY
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 29.1x book value
Earnings declined 12.3%
Moderate valuation
Trading at 23.0x book value
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 : WDC
The strongest argument for WDC centers on PEG Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 55.3% and operating margin at 37.0%. Revenue growth of 45.5% demonstrates continued momentum.
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 : WDC
The primary concerns for WDC are P/E Ratio, Price/Book.
Key Dynamics to Monitor
ARM carries more volatility with a beta of 3.41 — expect wider price swings.
WDC is growing revenue faster at 45.5% — sustainability is the question.
WDC generates stronger free cash flow (978M), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
WDC scores higher overall (79/100 vs 51/100), backed by strong 55.3% margins and 45.5% 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.
Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
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