Applied Materials Inc (AMAT)vsOnto Innovation Inc (ONTO)
AMAT
Applied Materials Inc
$456.49
-7.07%
TECHNOLOGY · Cap: $362.27B
ONTO
Onto Innovation Inc
$281.26
+4.59%
TECHNOLOGY · Cap: $17.18B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 2653% more annual revenue ($30.84B vs $1.12B). AMAT leads profitability with a 30.0% profit margin vs 11.8%. ONTO appears more attractively valued with a PEG of 0.76. AMAT earns a higher WallStSmart Score of 78/100 (B+).
AMAT
Strong Buy78
out of 100
Grade: B+
ONTO
Strong Buy66
out of 100
Grade: B-
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 35.3% year-over-year
Earnings expanding 75.4% YoY
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Strong operational efficiency at 23.0%
Areas to Watch
Premium valuation, high expectations priced in
Trading at 14.1x book value
ROE of 6.9% — 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, 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 : ONTO
The strongest argument for ONTO centers on Revenue Growth, EPS Growth, Altman Z-Score. Revenue growth of 35.3% demonstrates continued momentum. PEG of 0.76 suggests the stock is reasonably priced for its growth.
Bear Case : AMAT
The primary concerns for AMAT are P/E Ratio, Price/Book.
Bear Case : ONTO
The primary concerns for ONTO are Return on Equity, Piotroski F-Score, P/E Ratio. A P/E of 104.9x leaves little room for execution misses.
Key Dynamics to Monitor
AMAT carries more volatility with a beta of 1.60 — expect wider price swings.
ONTO is growing revenue faster at 35.3% — sustainability is the question.
AMAT generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AMAT scores higher overall (78/100 vs 66/100), backed by strong 30.0% margins and 24.8% revenue growth. Both earn "Strong Buy" and "Strong 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 →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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