Applied Materials Inc (AMAT)vsAXT Inc (AXTI)
AMAT
Applied Materials Inc
$456.49
+0.55%
TECHNOLOGY · Cap: $362.27B
AXTI
AXT Inc
$64.77
+0.11%
TECHNOLOGY · Cap: $4.25B
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 Buy78
out of 100
Grade: B+
AXTI
Hold43
out of 100
Grade: D
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
Revenue surging 164.8% year-over-year
Conservative balance sheet, low leverage
Strong operational efficiency at 21.9%
Areas to Watch
Premium valuation, high expectations priced in
Trading at 14.1x book value
3.2% margin — thin
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : 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.
Visit Website →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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