Arm Holdings plc American Depositary Shares (ARM)vsFlex Ltd (FLEX)
ARM
Arm Holdings plc American Depositary Shares
$212.65
-0.29%
TECHNOLOGY · Cap: $226.92B
FLEX
Flex Ltd
$145.07
+2.04%
TECHNOLOGY · Cap: $53.34B
Smart Verdict
WallStSmart Research — data-driven comparison
Flex Ltd generates 475% more annual revenue ($26.83B vs $4.67B). ARM leads profitability with a 17.2% profit margin vs 3.2%. FLEX appears more attractively valued with a PEG of 0.94. ARM earns a higher WallStSmart Score of 63/100 (C+).
ARM
Buy63
out of 100
Grade: C+
FLEX
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ARM.
Margin of Safety
+3.5%
Fair Value
$67.21
Current Price
$145.07
$77.86 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Strong operational efficiency at 29.6%
Revenue surging 20.1% year-over-year
Earnings expanding 45.7% YoY
Large-cap with strong market position
Growing faster than its price suggests
16.9% revenue growth
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 29.0x book value
Trading at 10.4x book value
3.2% margin — thin
Elevated debt levels
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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 : FLEX
The strongest argument for FLEX centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 16.9% demonstrates continued momentum. PEG of 0.94 suggests the stock is reasonably priced for its growth.
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 : FLEX
The primary concerns for FLEX are Price/Book, Profit Margin, Debt/Equity. A P/E of 62.0x leaves little room for execution misses. Thin 3.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
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.
FLEX generates stronger free cash flow (211M), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ARM scores higher overall (63/100 vs 60/100), backed by strong 17.2% margins and 20.1% revenue growth. 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.
Flex Ltd
TECHNOLOGY · ELECTRONIC COMPONENTS · USA
Flex Ltd. provides design, engineering, manufacturing and supply chain services and solutions to OEMs in Asia, the Americas and Europe. The company is headquartered in Singapore.
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