WallStSmart

Arm Holdings plc American Depositary Shares (ARM)vsCanadian Natural Resources Ltd (CNQ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Natural Resources Ltd generates 730% more annual revenue ($38.76B vs $4.67B). CNQ leads profitability with a 27.9% profit margin vs 17.2%. ARM appears more attractively valued with a PEG of 2.39. CNQ earns a higher WallStSmart Score of 67/100 (B-).

ARM

Buy

63

out of 100

Grade: C+

Growth: 9.3Profit: 7.5Value: 3.7Quality: 7.8
Piotroski: 4/9Altman Z: 3.93

CNQ

Strong Buy

67

out of 100

Grade: B-

Growth: 5.3Profit: 8.5Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ARM.

CNQUndervalued (+55.1%)

Margin of Safety

+55.1%

Fair Value

$90.53

Current Price

$46.92

$43.61 discount

UndervaluedFair: $90.53Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARM5 strengths · Avg: 8.8/10
Market CapQuality
$226.92B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.9310/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
29.6%8/10

Strong operational efficiency at 29.6%

Revenue GrowthGrowth
20.1%8/10

Revenue surging 20.1% year-over-year

EPS GrowthGrowth
45.7%8/10

Earnings expanding 45.7% YoY

CNQ5 strengths · Avg: 9.4/10
P/E RatioValuation
11.8x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
371.8%10/10

Earnings expanding 371.8% YoY

Market CapQuality
$92.88B9/10

Large-cap with strong market position

Return on EquityProfitability
25.8%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
27.9%9/10

Keeps 28 of every $100 in revenue as profit

Areas to Watch

ARM3 concerns · Avg: 2.7/10
PEG RatioValuation
2.394/10

Expensive relative to growth rate

P/E RatioValuation
250.9x2/10

Premium valuation, high expectations priced in

Price/BookValuation
29.0x2/10

Trading at 29.0x book value

CNQ2 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.5%4/10

1.5% revenue growth

PEG RatioValuation
3.422/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : ARM

The strongest argument for ARM centers on Market Cap, Altman Z-Score, Operating Margin. Profitability is solid with margins at 17.2% and operating margin at 29.6%. Revenue growth of 20.1% demonstrates continued momentum.

Bull Case : CNQ

The strongest argument for CNQ centers on P/E Ratio, EPS Growth, Market Cap. Profitability is solid with margins at 27.9% and operating margin at 19.6%.

Bear Case : ARM

The primary concerns for ARM are PEG Ratio, P/E Ratio, Price/Book. A P/E of 250.9x leaves little room for execution misses.

Bear Case : CNQ

The primary concerns for CNQ are Revenue Growth, PEG Ratio.

Key Dynamics to Monitor

ARM profiles as a growth stock while CNQ 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 20.1% — sustainability is the question.

CNQ generates stronger free cash flow (856M), providing more financial flexibility.

Bottom Line

CNQ scores higher overall (67/100 vs 63/100), backed by strong 27.9% margins. 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.

Canadian Natural Resources Ltd

ENERGY · OIL & GAS E&P · USA

Canadian Natural Resources Limited acquires, explores, develops, produces, markets and sells crude oil, natural gas and natural gas liquids (NGL). The company is headquartered in Calgary, Canada.

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