WallStSmart

Applied Materials Inc (AMAT)vsAXT Inc (AXTI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Applied Materials Inc generates 24470% more annual revenue ($30.84B vs $125.51M). AMAT leads profitability with a 30.0% profit margin vs 3.2%. AMAT appears more attractively valued with a PEG of 0.90. AMAT earns a higher WallStSmart Score of 78/100 (B+).

AMAT

Strong Buy

78

out of 100

Grade: B+

Growth: 7.3Profit: 10.0Value: 5.7Quality: 8.5
Piotroski: 4/9Altman Z: 4.98

AXTI

Hold

43

out of 100

Grade: D

Growth: 4.7Profit: 4.5Value: 3.0Quality: 8.0
Piotroski: 2/9Altman Z: 2.30

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AMAT6 strengths · Avg: 9.8/10
Market CapQuality
$362.27B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.2%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
30.0%10/10

Keeps 30 of every $100 in revenue as profit

Operating MarginProfitability
33.7%10/10

Strong operational efficiency at 33.7%

Altman Z-ScoreHealth
4.9810/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

AXTI3 strengths · Avg: 9.3/10
Revenue GrowthGrowth
164.8%10/10

Revenue surging 164.8% year-over-year

Debt/EquityHealth
0.1010/10

Conservative balance sheet, low leverage

Operating MarginProfitability
21.9%8/10

Strong operational efficiency at 21.9%

Areas to Watch

AMAT2 concerns · Avg: 4.0/10
P/E RatioValuation
39.4x4/10

Premium valuation, high expectations priced in

Price/BookValuation
14.1x4/10

Trading at 14.1x book value

AXTI4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.2%3/10

3.2% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
12.092/10

Expensive relative to growth rate

P/E RatioValuation
2159.0x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull 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 : AXTI

The strongest argument for AXTI centers on Revenue Growth, Debt/Equity, Operating Margin. Revenue growth of 164.8% demonstrates continued momentum.

Bear Case : AMAT

The primary concerns for AMAT are P/E Ratio, Price/Book.

Bear Case : AXTI

The primary concerns for AXTI are Profit Margin, Piotroski F-Score, PEG Ratio. A P/E of 2159.0x leaves little room for execution misses. Thin 3.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

AMAT profiles as a growth stock while AXTI is a hypergrowth play — different risk/reward profiles.

AXTI carries more volatility with a beta of 1.92 — expect wider price swings.

AXTI is growing revenue faster at 164.8% — 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 43/100), backed by strong 30.0% margins and 24.8% revenue growth. Both earn "Strong Buy" and "Hold" 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.

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AXT Inc

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

AXT, Inc. designs, develops, manufactures and distributes single element and composite semiconductor substrates. The company is headquartered in Fremont, California.

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