Applied Materials Inc (AMAT)vsAmbarella Inc (AMBA)
AMAT
Applied Materials Inc
$588.97
+0.53%
TECHNOLOGY · Cap: $465.09B
AMBA
Ambarella Inc
$70.71
-11.84%
TECHNOLOGY · Cap: $2.97B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 7063% more annual revenue ($29.02B vs $405.19M). AMAT leads profitability with a 29.3% profit margin vs -17.2%. AMAT appears more attractively valued with a PEG of 1.89. AMAT earns a higher WallStSmart Score of 72/100 (B).
AMAT
Strong Buy72
out of 100
Grade: B
AMBA
Avoid33
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AMAT.
Margin of Safety
+15.6%
Fair Value
$79.23
Current Price
$70.71
$8.52 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 36 in profit
Strong operational efficiency at 31.9%
Safe zone — low bankruptcy risk
Keeps 29 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Conservative balance sheet, low leverage
16.9% revenue growth
Areas to Watch
Expensive relative to growth rate
Trading at 19.6x book value
Premium valuation, high expectations priced in
0.0% earnings growth
Distress zone — elevated risk
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : AMAT
The strongest argument for AMAT centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 29.3% and operating margin at 31.9%. Revenue growth of 11.4% demonstrates continued momentum.
Bull Case : AMBA
The strongest argument for AMBA centers on Debt/Equity, Revenue Growth. Revenue growth of 16.9% demonstrates continued momentum.
Bear Case : AMAT
The primary concerns for AMAT are PEG Ratio, Price/Book, P/E Ratio. A P/E of 55.3x leaves little room for execution misses.
Bear Case : AMBA
The primary concerns for AMBA are EPS Growth, Altman Z-Score, Piotroski F-Score.
Key Dynamics to Monitor
AMAT profiles as a mature stock while AMBA is a growth play — different risk/reward profiles.
AMBA carries more volatility with a beta of 2.15 — expect wider price swings.
AMBA is growing revenue faster at 16.9% — sustainability is the question.
AMAT generates stronger free cash flow (208M), providing more financial flexibility.
Bottom Line
AMAT scores higher overall (72/100 vs 33/100), backed by strong 29.3% margins and 11.4% revenue growth. AMBA offers better value entry with a 15.6% margin of safety. Both earn "Strong 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.
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 →Ambarella Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Ambarella, Inc. develops semiconductor video solutions that enable high definition (HD) and ultra HD compression, image processing, and deep neural network processing globally. The company is headquartered in Santa Clara, California.
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