WallStSmart

Applied Materials Inc (AMAT)vsServiceNow Inc (NOW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Applied Materials Inc generates 102% more annual revenue ($28.21B vs $13.96B). AMAT leads profitability with a 27.8% profit margin vs 12.6%. NOW appears more attractively valued with a PEG of 0.89. AMAT earns a higher WallStSmart Score of 64/100 (C+).

AMAT

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 9.5Value: 4.3Quality: 8.0
Piotroski: 4/9Altman Z: 4.98

NOW

Buy

59

out of 100

Grade: C

Growth: 7.3Profit: 6.5Value: 6.7Quality: 3.8
Piotroski: 1/9Altman Z: 1.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AMAT.

NOWUndervalued (+85.2%)

Margin of Safety

+85.2%

Fair Value

$630.85

Current Price

$91.18

$539.67 discount

UndervaluedFair: $630.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AMAT6 strengths · Avg: 9.5/10
Market CapQuality
$325.89B10/10

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%

NOW4 strengths · Avg: 8.3/10
Market CapQuality
$96.52B9/10

Large-cap with strong market position

PEG RatioValuation
0.898/10

Growing faster than its price suggests

Revenue GrowthGrowth
22.1%8/10

Revenue surging 22.1% year-over-year

Free Cash FlowQuality
$1.53B8/10

Generating 1.5B in free cash flow

Areas to Watch

AMAT4 concerns · Avg: 3.0/10
PEG RatioValuation
1.964/10

Expensive relative to growth rate

Price/BookValuation
15.9x4/10

Trading at 15.9x book value

P/E RatioValuation
42.2x2/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
-2.1%2/10

Revenue declined 2.1%

NOW4 concerns · Avg: 3.8/10
Price/BookValuation
8.0x4/10

Trading at 8.0x book value

EPS GrowthGrowth
2.3%4/10

2.3% earnings growth

Altman Z-ScoreHealth
1.654/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

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 : NOW

The strongest argument for NOW centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 0.89 suggests the stock is reasonably priced for its growth.

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 : NOW

The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 55.7x leaves little room for execution misses.

Key Dynamics to Monitor

AMAT profiles as a declining stock while NOW is a growth play — different risk/reward profiles.

AMAT carries more volatility with a beta of 1.65 — expect wider price swings.

NOW is growing revenue faster at 22.1% — sustainability is the question.

NOW generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

AMAT scores higher overall (64/100 vs 59/100), backed by strong 27.8% margins. NOW offers better value entry with a 85.2% 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.

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ServiceNow Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

ServiceNow is an American software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.

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