Applied Materials Inc (AMAT)vsCognizant Technology Solutions Corp Class A (CTSH)
AMAT
Applied Materials Inc
$369.34
-8.34%
TECHNOLOGY · Cap: $293.11B
CTSH
Cognizant Technology Solutions Corp Class A
$59.79
-0.75%
TECHNOLOGY · Cap: $28.86B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 34% more annual revenue ($28.21B vs $21.11B). AMAT leads profitability with a 27.8% profit margin vs 10.6%. CTSH appears more attractively valued with a PEG of 1.02. CTSH earns a higher WallStSmart Score of 71/100 (B).
AMAT
Buy64
out of 100
Grade: C+
CTSH
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+19.1%
Fair Value
$456.30
Current Price
$369.34
$86.96 discount
Margin of Safety
+63.1%
Fair Value
$192.25
Current Price
$59.79
$132.46 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%
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 22.1% YoY
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 13.5x book value
Revenue declined 2.1%
4.9% revenue growth
Weak financial health signals
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 : CTSH
The strongest argument for CTSH centers on P/E Ratio, Price/Book, EPS Growth. PEG of 1.02 suggests the stock is reasonably priced for its growth.
Bear Case : AMAT
The primary concerns for AMAT are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : CTSH
The primary concerns for CTSH are Revenue Growth, Piotroski F-Score.
Key Dynamics to Monitor
AMAT profiles as a declining stock while CTSH is a value play — different risk/reward profiles.
AMAT carries more volatility with a beta of 1.63 — expect wider price swings.
CTSH is growing revenue faster at 4.9% — sustainability is the question.
AMAT generates stronger free cash flow (1.0B), providing more financial flexibility.
Bottom Line
CTSH scores higher overall (71/100 vs 64/100). AMAT offers better value entry with a 19.1% margin of safety. Both earn "Strong 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 →Cognizant Technology Solutions Corp Class A
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
Cognizant is an American multinational technology company that provides business consulting, information technology and outsourcing services. It is headquartered in Teaneck, New Jersey, United States.
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