Aehr Test Systems (AEHR)vsApplied Materials Inc (AMAT)
AEHR
Aehr Test Systems
$39.03
-0.41%
TECHNOLOGY · Cap: $1.06B
AMAT
Applied Materials Inc
$369.34
-1.24%
TECHNOLOGY · Cap: $293.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 52885% more annual revenue ($28.21B vs $53.25M). AMAT leads profitability with a 27.8% profit margin vs -16.6%. AEHR appears more attractively valued with a PEG of 0.90. AMAT earns a higher WallStSmart Score of 64/100 (C+).
AEHR
Avoid26
out of 100
Grade: F
AMAT
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AEHR.
Margin of Safety
+19.1%
Fair Value
$456.30
Current Price
$369.34
$86.96 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Growing faster than its price suggests
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
Trading at 9.1x book value
Smaller company, higher risk/reward
Weak financial health signals
ROE of -7.0% — below average capital efficiency
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 13.5x book value
Revenue declined 2.1%
Comparative Analysis Report
WallStSmart ResearchBull Case : AEHR
The strongest argument for AEHR centers on Debt/Equity, Altman Z-Score, PEG Ratio. PEG of 0.90 suggests the stock is reasonably priced for its growth.
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 : AEHR
The primary concerns for AEHR are Price/Book, Market Cap, Piotroski F-Score.
Bear Case : AMAT
The primary concerns for AMAT are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
AEHR profiles as a turnaround stock while AMAT is a declining play — different risk/reward profiles.
AEHR carries more volatility with a beta of 2.31 — expect wider price swings.
AMAT is growing revenue faster at -2.1% — sustainability is the question.
AMAT generates stronger free cash flow (1.0B), providing more financial flexibility.
Bottom Line
AMAT scores higher overall (64/100 vs 26/100), backed by strong 27.8% margins. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Aehr Test Systems
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Aehr Test Systems primarily designs, designs, manufactures and sells test and burn equipment for use in the semiconductor industry in the United States, Asia and Europe. The company is headquartered in Fremont, California.
Visit Website →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 SEMICONDUCTOR EQUIPMENT & MATERIALS Stocks
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