Applied Materials Inc (AMAT)vsAmbarella Inc (AMBA)
AMAT
Applied Materials Inc
$464.24
+1.77%
TECHNOLOGY · Cap: $362.27B
AMBA
Ambarella Inc
$67.06
-2.60%
TECHNOLOGY · Cap: $2.92B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 7281% more annual revenue ($30.84B vs $417.80M). AMAT leads profitability with a 30.0% profit margin vs -13.5%. AMAT appears more attractively valued with a PEG of 0.90. AMAT earns a higher WallStSmart Score of 78/100 (B+).
AMAT
Strong Buy78
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
+17.0%
Fair Value
$80.56
Current Price
$67.06
$13.50 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
Keeps 30 of every $100 in revenue as profit
Strong operational efficiency at 33.7%
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Conservative balance sheet, low leverage
Areas to Watch
Premium valuation, high expectations priced in
Trading at 14.4x book value
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, Profit Margin. Profitability is solid with margins at 30.0% and operating margin at 33.7%. Revenue growth of 24.8% demonstrates continued momentum.
Bull Case : AMBA
The strongest argument for AMBA centers on Debt/Equity. Revenue growth of 13.2% demonstrates continued momentum.
Bear Case : AMAT
The primary concerns for AMAT are P/E Ratio, Price/Book.
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 growth stock while AMBA is a turnaround play — different risk/reward profiles.
AMBA carries more volatility with a beta of 2.09 — expect wider price swings.
AMAT is growing revenue faster at 24.8% — sustainability is the question.
AMAT generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
AMAT scores higher overall (78/100 vs 33/100), backed by strong 30.0% margins and 24.8% revenue growth. AMBA offers better value entry with a 17.0% 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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