Applied Materials Inc (AMAT)vsOnto Innovation Inc (ONTO)
AMAT
Applied Materials Inc
$369.34
-1.24%
TECHNOLOGY · Cap: $293.11B
ONTO
Onto Innovation Inc
$221.04
+0.72%
TECHNOLOGY · Cap: $10.91B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 2707% more annual revenue ($28.21B vs $1.01B). AMAT leads profitability with a 27.8% profit margin vs 13.6%. ONTO appears more attractively valued with a PEG of 1.13. AMAT earns a higher WallStSmart Score of 64/100 (C+).
AMAT
Buy64
out of 100
Grade: C+
ONTO
Hold46
out of 100
Grade: D+
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
-1072.5%
Fair Value
$18.97
Current Price
$221.04
$202.07 premium
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%
Strong operational efficiency at 20.9%
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 13.5x book value
Revenue declined 2.1%
1.1% revenue growth
ROE of 6.8% — below average capital efficiency
Weak financial health signals
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, EPS Growth. Profitability is solid with margins at 27.8% and operating margin at 29.9%.
Bull Case : ONTO
The strongest argument for ONTO centers on Operating Margin. PEG of 1.13 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 : ONTO
The primary concerns for ONTO are Revenue Growth, Return on Equity, Piotroski F-Score. A P/E of 78.7x leaves little room for execution misses.
Key Dynamics to Monitor
AMAT profiles as a declining stock while ONTO is a value play — different risk/reward profiles.
AMAT carries more volatility with a beta of 1.63 — expect wider price swings.
ONTO is growing revenue faster at 1.1% — 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 46/100), backed by strong 27.8% margins. Both earn "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 →Onto Innovation Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Onto Innovation Inc. is dedicated to the design, development, manufacture and support of process control tools that perform macrodefect inspection and metrology, lithography systems, and process control analytical software worldwide. The company is headquartered in Wilmington, Massachusetts.
Visit Website →Compare with Other SEMICONDUCTOR EQUIPMENT & MATERIALS Stocks
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