Analog Devices Inc (ADI)vsApplied Materials Inc (AMAT)
ADI
Analog Devices Inc
$416.52
+1.96%
TECHNOLOGY · Cap: $199.44B
AMAT
Applied Materials Inc
$435.44
+6.04%
TECHNOLOGY · Cap: $325.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 140% more annual revenue ($28.21B vs $11.76B). AMAT leads profitability with a 27.8% profit margin vs 23.0%. ADI appears more attractively valued with a PEG of 1.01. ADI earns a higher WallStSmart Score of 70/100 (B).
ADI
Strong Buy70
out of 100
Grade: B
AMAT
Buy64
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.1%
Revenue surging 30.4% year-over-year
Earnings expanding 116.7% YoY
Large-cap with strong market position
Keeps 23 of every $100 in revenue as profit
Generating 1.3B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 39 in profit
Earnings expanding 75.2% YoY
Safe zone — low bankruptcy risk
Keeps 28 of every $100 in revenue as profit
Strong operational efficiency at 29.9%
Areas to Watch
ROE of 7.9% — below average capital efficiency
Premium valuation, high expectations priced in
Expensive relative to growth rate
Trading at 15.9x book value
Premium valuation, high expectations priced in
Revenue declined 2.1%
Comparative Analysis Report
WallStSmart ResearchBull Case : ADI
The strongest argument for ADI centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 23.0% and operating margin at 33.1%. Revenue growth of 30.4% demonstrates continued momentum.
Bull Case : AMAT
The strongest argument for AMAT centers on Market Cap, Return on Equity, EPS Growth. Profitability is solid with margins at 27.8% and operating margin at 29.9%.
Bear Case : ADI
The primary concerns for ADI are Return on Equity, P/E Ratio. A P/E of 74.4x leaves little room for execution misses.
Bear Case : AMAT
The primary concerns for AMAT are PEG Ratio, Price/Book, P/E Ratio. A P/E of 42.2x leaves little room for execution misses.
Key Dynamics to Monitor
ADI profiles as a growth stock while AMAT is a declining play — different risk/reward profiles.
AMAT carries more volatility with a beta of 1.65 — expect wider price swings.
ADI is growing revenue faster at 30.4% — sustainability is the question.
ADI generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
ADI scores higher overall (70/100 vs 64/100), backed by strong 23.0% margins and 30.4% revenue growth. 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.
Analog Devices Inc
TECHNOLOGY · SEMICONDUCTORS · USA
Analog Devices, Inc. (ADI), also known simply as Analog, is an American multinational semiconductor company specializing in data conversion, signal processing and power management technology, headquartered in Wilmington, Massachusetts.
Applied Materials Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Applied Materials, Inc. is an American corporation that supplies equipment, services and software for the manufacture of semiconductor (integrated circuit) chips for electronics, flat panel displays for computers, smartphones and televisions, and solar products. The company also supplies equipment to produce coatings for flexible electronics, packaging and other applications. The company is headquartered in Santa Clara, California, in Silicon Valley.
Visit Website →Compare with Other SEMICONDUCTORS Stocks
Want to dig deeper into these stocks?