Applied Materials Inc (AMAT)vsBritish American Tobacco p.l.c. (BTI)
AMAT
Applied Materials Inc
$435.44
+6.04%
TECHNOLOGY · Cap: $325.89B
BTI
British American Tobacco p.l.c.
$58.28
+0.34%
CONSUMER DEFENSIVE · Cap: $125.67B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 10% more annual revenue ($28.21B vs $25.61B). BTI leads profitability with a 30.3% profit margin vs 27.8%. BTI appears more attractively valued with a PEG of 1.52. AMAT earns a higher WallStSmart Score of 64/100 (C+).
AMAT
Buy64
out of 100
Grade: C+
BTI
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AMAT.
Margin of Safety
+23.4%
Fair Value
$78.80
Current Price
$58.28
$20.52 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 39 in profit
Earnings expanding 75.2% YoY
Safe zone — low bankruptcy risk
Keeps 28 of every $100 in revenue as profit
Strong operational efficiency at 29.9%
Keeps 30 of every $100 in revenue as profit
Strong operational efficiency at 34.6%
Large-cap with strong market position
Attractively priced relative to earnings
Generating 3.0B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 15.9x book value
Premium valuation, high expectations priced in
Revenue declined 2.1%
Expensive relative to growth rate
Trading at 10.1x book value
0.1% revenue growth
1.6% earnings growth
Comparative Analysis Report
WallStSmart ResearchBull 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 : BTI
The strongest argument for BTI centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 30.3% and operating margin at 34.6%.
Bear Case : AMAT
The primary concerns for AMAT are PEG Ratio, Price/Book, P/E Ratio. A P/E of 42.2x leaves little room for execution misses.
Bear Case : BTI
The primary concerns for BTI are PEG Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
AMAT profiles as a declining stock while BTI is a value play — different risk/reward profiles.
AMAT carries more volatility with a beta of 1.65 — expect wider price swings.
BTI is growing revenue faster at 0.1% — sustainability is the question.
BTI generates stronger free cash flow (3.0B), providing more financial flexibility.
Bottom Line
AMAT scores higher overall (64/100 vs 60/100), backed by strong 27.8% margins. BTI offers better value entry with a 23.4% margin of safety. Both earn "Buy" and "Buy" 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 →British American Tobacco p.l.c.
CONSUMER DEFENSIVE · TOBACCO · USA
British American Tobacco plc offers tobacco and nicotine products to consumers around the world. The company is headquartered in London, the United Kingdom.
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