Stock Comparison

AAPL vs ARM

Apple Inc vs Arm Holdings PLC

Who's the better investment? Let's break it down.

The Verdict

ARM takes this one.

It's not even close. ARM outscores AAPL by 5.4 points. That's a significant gap in our deep value framework.

AAPL

Apple Inc

1.6

out of 10

Distressed
Winner
ARM

Arm Holdings PLC

7.0

out of 10

Solid Pick

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Valuation

AAPL

Metric

ARM

$4.4T

Market Cap

$467.6B
36.0

P/E Ratio

Lower may indicate better value

517.2
30.0

Forward P/E

N/A
39.8

Price/Book

56.6
23.5

EV/EBITDA

437.9

Profitability & Growth

AAPL

Metric

ARM

27.1%

Profit Margin

18.4%
47.9%

Gross Margin

97.5%
32.6%

Operating Margin

18.3%
146.7%

Return on Equity

11.9%
34.0%

Return on Assets

9.0%
12.8%

Revenue Growth

22.8%
$8.27

EPS

$0.85

Financial Health

AAPL

Metric

ARM

1.4

Debt-to-Equity

Lower = less leverage

0.0
0.9

Current Ratio

Above 1.0 is healthy

6.0
1.1

Beta

Lower = less volatile

3.6
0.4%

Dividend Yield

None

Risk Comparison

AAPL

Overall
Moderate
Financial
Low
Market
Medium
Competitive
Medium
Execution
Low
Regulatory
Medium

What Could Go Wrong

A significant global economic recession could heavily impact discretionary spending on iPhones and other premium devices, leading to revenue deceleration and potential margin compression, particularly...

Red Flags

  • 🚩Continued deceleration in iPhone sales growth over multiple quarters without a compelling new growth...
  • 🚩Significant erosion of Services segment gross margin without clear explanation.
  • 🚩Major legal or regulatory setback (e.g., forced ecosystem changes, substantial fines).

ARM

Overall
Moderate
Financial
Low
Market
Medium
Competitive
Medium
Execution
Medium
Regulatory
Low

What Could Go Wrong

Arm's extreme valuation (TTM P/E ~517x) leaves little room for error. A significant slowdown in AI or data center spending, or any unexpected deceleration from its +47% YoY Q4 FY26 revenue growth, cou...

Red Flags

  • 🚩CAO Laura Kathleen Bartels' insider sale of $4.44M in shares on June 2, 2026, might signal managemen...
  • 🚩Extreme TTM P/E (~517x) demands flawless execution and accelerating growth to justify, placing high ...
  • 🚩Net margin easing from 19.8% to 18.4% TTM indicates slight pressure on profitability, which needs to...

Competitive Moat

AAPL

Rating

🛡️ Wide

Trend

➡️ Stable to Expanding

Brand PowerSwitching CostsNetwork EffectsIntangible Assets/IP

ARM

Rating

🛡️ Wide

Trend

📈 Expanding

Intangible Assets/IP (foundational CPU architecture and patents)Switching Costs (extensive software ecosystem, design complexity, developer familiarity)Network Effects (widespread adoption drives more software, tooling, and partner support)

Investment Thesis

AAPL1.6/10

Apple is a dominant, financially robust mega-cap offering consistent earnings growth, significant capital returns via buybacks and dividends, and an expanding high-margin Services segment. While it lacks 10x growth potential due to its immense scale, it serves as a high-quality, stable core portfolio holding with defensive characteristics and steady long-term appreciation potential, driven by its ...

Full AAPL Analysis
ARM7.0/10

If Arm continues to execute on its strategic vision, achieving sustained revenue growth of +30% YoY by expanding its Neoverse architecture into 25%+ of the data center market and securing significant new design wins in the automotive AI segment over the next 3 years, then its annual revenue could exceed $12 billion by FY2029, justifying a continued premium valuation multiplier closer to 150-200x f...

Full ARM Analysis

Price Targets & Strategy

Price Targets & Entry/Exit Strategy

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Growth Catalysts

Growth Catalysts Comparison

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Market Sentiment

Market Sentiment Analysis

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The Deep Dive

AAPL1.6/10

Apple continues to demonstrate exceptional operational and financial performance, highlighted by its Fiscal Q2 2026 results with revenue up 17% YoY and EPS up 22% YoY, both beating estimates. The company reported record March quarter revenue for the total company and iPhone, strong Services growth, and authorized a new $100 billion share repurchase program, alongside a 4% dividend increase. Its unparalleled ecosystem, brand loyalty, and robust financial health are undeniable. However, the core d...

Full AAPL Analysis
ARM7.0/10

Arm Holdings continues to demonstrate exceptional operational execution, highlighted by its Q4 FY26 revenue growth of 47% YoY ($1.49 billion, beating estimates). Its foundational role in AI, data centers, and automotive sectors, coupled with a strategic vision for TAM expansion to $1.5T by FY31, provides powerful tailwinds. The recent analyst target raise to $500 (from $300) reflects increased confidence in its market leadership and competitive moat. While the current market capitalization of $4...

Full ARM Analysis

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Not Financial Advice

This comparison is for educational purposes only. We are not financial advisors. Always do your own research and consult a qualified financial advisor before making investment decisions.

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