Arm Holdings plc American Depositary Shares (ARM)vsToyota Motor Corporation ADR (TM)
ARM
Arm Holdings plc American Depositary Shares
$213.27
-0.02%
TECHNOLOGY · Cap: $252.01B
TM
Toyota Motor Corporation ADR
$187.53
-0.78%
CONSUMER CYCLICAL · Cap: $230.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Toyota Motor Corporation ADR generates 1079985% more annual revenue ($50.45T vs $4.67B). ARM leads profitability with a 17.2% profit margin vs 7.3%. TM appears more attractively valued with a PEG of 1.54. TM earns a higher WallStSmart Score of 55/100 (C).
ARM
Buy51
out of 100
Grade: C-
TM
Buy55
out of 100
Grade: C
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
Mega-cap, among the largest globally
Attractively priced relative to earnings
Generating 592.1B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 29.1x book value
Earnings declined 12.3%
Expensive relative to growth rate
Trading at 16.0x book value
7.3% margin — thin
Earnings declined 42.3%
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 : TM
The strongest argument for TM centers on Market Cap, P/E Ratio, Free Cash Flow.
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 : TM
The primary concerns for TM are PEG Ratio, Price/Book, Profit Margin.
Key Dynamics to Monitor
ARM profiles as a growth stock while TM 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.
TM generates stronger free cash flow (592.1B), providing more financial flexibility.
Bottom Line
TM scores higher overall (55/100 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.
Toyota Motor Corporation ADR
CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA
Toyota Motor Corporation designs, manufactures, assembles and sells passenger cars, minivans and commercial vehicles, and related parts and accessories. The company is headquartered in Toyota, Japan.
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