Applovin Corp (APP)vsArm Holdings plc American Depositary Shares (ARM)
APP
Applovin Corp
$468.55
-6.08%
COMMUNICATION SERVICES · Cap: $167.59B
ARM
Arm Holdings plc American Depositary Shares
$213.27
-0.02%
TECHNOLOGY · Cap: $252.01B
Smart Verdict
WallStSmart Research — data-driven comparison
Applovin Corp generates 32% more annual revenue ($6.16B vs $4.67B). APP leads profitability with a 64.3% profit margin vs 17.2%. APP appears more attractively valued with a PEG of 1.33. APP earns a higher WallStSmart Score of 77/100 (B+).
APP
Strong Buy77
out of 100
Grade: B+
ARM
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-56.9%
Fair Value
$242.94
Current Price
$468.55
$225.61 premium
Intrinsic value data unavailable for ARM.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 266 in profit
Keeps 64 of every $100 in revenue as profit
Strong operational efficiency at 78.1%
Revenue surging 59.0% year-over-year
Earnings expanding 113.0% YoY
Safe zone — low bankruptcy risk
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Revenue surging 26.3% year-over-year
Areas to Watch
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 74.3x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 29.1x book value
Earnings declined 12.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : APP
The strongest argument for APP centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 64.3% and operating margin at 78.1%. Revenue growth of 59.0% demonstrates continued momentum.
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.
Bear Case : APP
The primary concerns for APP are Debt/Equity, P/E Ratio, Price/Book. A P/E of 43.3x leaves little room for execution misses. Debt-to-equity of 1.66 is elevated, increasing financial risk.
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.
Key Dynamics to Monitor
ARM carries more volatility with a beta of 3.41 — expect wider price swings.
APP is growing revenue faster at 59.0% — sustainability is the question.
APP generates stronger free cash flow (1.3B), providing more financial flexibility.
Monitor ADVERTISING AGENCIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
APP scores higher overall (77/100 vs 51/100), backed by strong 64.3% margins and 59.0% 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.
Applovin Corp
COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA
AppLovin Corporation is committed to creating a software-based platform for mobile application developers to improve the marketing and monetization of their applications globally. The company is headquartered in Palo Alto, California.
Visit Website →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.
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