WallStSmart

Arm Holdings plc American Depositary Shares (ARM)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 546% more annual revenue ($30.18B vs $4.67B). ARM leads profitability with a 17.2% profit margin vs 14.5%. ARM appears more attractively valued with a PEG of 2.45. SO earns a higher WallStSmart Score of 56/100 (C).

ARM

Buy

51

out of 100

Grade: C-

Growth: 6.7Profit: 7.0Value: 3.7Quality: 7.8
Piotroski: 4/9Altman Z: 3.93

SO

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 3.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ARM.

SOSignificantly Overvalued (-26.1%)

Margin of Safety

-26.1%

Fair Value

$73.33

Current Price

$91.80

$18.47 premium

UndervaluedFair: $73.33Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARM3 strengths · Avg: 9.3/10
Market CapQuality
$252.01B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.9310/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
26.3%8/10

Revenue surging 26.3% year-over-year

SO3 strengths · Avg: 8.3/10
Market CapQuality
$103.49B9/10

Large-cap with strong market position

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.8%8/10

Strong operational efficiency at 25.8%

Areas to Watch

ARM4 concerns · Avg: 2.5/10
PEG RatioValuation
2.454/10

Expensive relative to growth rate

P/E RatioValuation
279.2x2/10

Premium valuation, high expectations priced in

Price/BookValuation
29.1x2/10

Trading at 29.1x book value

EPS GrowthGrowth
-12.3%2/10

Earnings declined 12.3%

SO3 concerns · Avg: 2.0/10
PEG RatioValuation
2.662/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.8%2/10

Earnings declined 0.8%

Free Cash FlowQuality
$-1.72B2/10

Negative free cash flow — burning cash

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 : SO

The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.

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 : SO

The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

ARM profiles as a growth stock while SO 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 26.3% — sustainability is the question.

ARM generates stronger free cash flow (186M), providing more financial flexibility.

Bottom Line

SO scores higher overall (56/100 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.

Southern Company

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.

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