WallStSmart

Applied Materials Inc (AMAT)vsAXT Inc (AXTI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Applied Materials Inc generates 31843% more annual revenue ($28.21B vs $88.33M). AMAT leads profitability with a 27.8% profit margin vs -24.1%. AMAT appears more attractively valued with a PEG of 1.70. AMAT earns a higher WallStSmart Score of 64/100 (C+).

AMAT

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 9.5Value: 9.3Quality: 8.5
Piotroski: 4/9Altman Z: 4.98

AXTI

Avoid

18

out of 100

Grade: F

Growth: 2.0Profit: 2.0Value: 4.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AMATUndervalued (+19.1%)

Margin of Safety

+19.1%

Fair Value

$456.30

Current Price

$369.34

$86.96 discount

UndervaluedFair: $456.30Overvalued

Intrinsic value data unavailable for AXTI.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AMAT6 strengths · Avg: 9.5/10
Market CapQuality
$293.11B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
38.9%10/10

Every $100 of equity generates 39 in profit

EPS GrowthGrowth
75.2%10/10

Earnings expanding 75.2% YoY

Altman Z-ScoreHealth
4.9810/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
27.8%9/10

Keeps 28 of every $100 in revenue as profit

Operating MarginProfitability
29.9%8/10

Strong operational efficiency at 29.9%

AXTI0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

AMAT4 concerns · Avg: 3.5/10
PEG RatioValuation
1.704/10

Expensive relative to growth rate

P/E RatioValuation
37.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
13.5x4/10

Trading at 13.5x book value

Revenue GrowthGrowth
-2.1%2/10

Revenue declined 2.1%

AXTI4 concerns · Avg: 2.5/10
Price/BookValuation
13.6x4/10

Trading at 13.6x book value

PEG RatioValuation
12.092/10

Expensive relative to growth rate

Return on EquityProfitability
-7.9%2/10

ROE of -7.9% — below average capital efficiency

Revenue GrowthGrowth
-8.2%2/10

Revenue declined 8.2%

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : AXTI

AXTI has a balanced fundamental profile.

Bear Case : AMAT

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

Bear Case : AXTI

The primary concerns for AXTI are Price/Book, PEG Ratio, Return on Equity.

Key Dynamics to Monitor

AMAT profiles as a declining stock while AXTI is a turnaround play — different risk/reward profiles.

AXTI carries more volatility with a beta of 1.81 — 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 18/100), 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.

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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