WallStSmart

Applied Materials Inc (AMAT)vsPetroleo Brasileiro Petrobras SA ADR (PBR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Petroleo Brasileiro Petrobras SA ADR generates 1616% more annual revenue ($498.09B vs $29.02B). AMAT leads profitability with a 29.3% profit margin vs 21.6%. AMAT appears more attractively valued with a PEG of 1.56. AMAT earns a higher WallStSmart Score of 72/100 (B).

AMAT

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 9.5Value: 4.3Quality: 8.5
Piotroski: 4/9Altman Z: 4.98

PBR

Strong Buy

66

out of 100

Grade: B-

Growth: 2.7Profit: 8.5Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 2.08
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AMAT.

PBRUndervalued (+89.6%)

Margin of Safety

+89.6%

Fair Value

$176.60

Current Price

$17.75

$158.85 discount

UndervaluedFair: $176.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AMAT6 strengths · Avg: 9.7/10
Market CapQuality
$389.08B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.6%10/10

Every $100 of equity generates 36 in profit

Operating MarginProfitability
31.9%10/10

Strong operational efficiency at 31.9%

Altman Z-ScoreHealth
4.9810/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
29.3%9/10

Keeps 29 of every $100 in revenue as profit

Debt/EquityHealth
0.279/10

Conservative balance sheet, low leverage

PBR6 strengths · Avg: 9.5/10
P/E RatioValuation
5.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
32.0%10/10

Strong operational efficiency at 32.0%

Market CapQuality
$117.55B9/10

Large-cap with strong market position

Return on EquityProfitability
23.9%9/10

Every $100 of equity generates 24 in profit

Profit MarginProfitability
21.6%9/10

Keeps 22 of every $100 in revenue as profit

Areas to Watch

AMAT3 concerns · Avg: 3.3/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

Price/BookValuation
15.0x4/10

Trading at 15.0x book value

P/E RatioValuation
46.1x2/10

Premium valuation, high expectations priced in

PBR3 concerns · Avg: 2.7/10
Revenue GrowthGrowth
0.4%4/10

0.4% revenue growth

PEG RatioValuation
4.572/10

Expensive relative to growth rate

EPS GrowthGrowth
-7.2%2/10

Earnings declined 7.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : AMAT

The strongest argument for AMAT centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 29.3% and operating margin at 31.9%. Revenue growth of 11.4% demonstrates continued momentum.

Bull Case : PBR

The strongest argument for PBR centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 21.6% and operating margin at 32.0%.

Bear Case : AMAT

The primary concerns for AMAT are PEG Ratio, Price/Book, P/E Ratio. A P/E of 46.1x leaves little room for execution misses.

Bear Case : PBR

The primary concerns for PBR are Revenue Growth, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

AMAT profiles as a mature stock while PBR is a value play — different risk/reward profiles.

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

AMAT is growing revenue faster at 11.4% — sustainability is the question.

PBR generates stronger free cash flow (3.3B), providing more financial flexibility.

Bottom Line

AMAT scores higher overall (72/100 vs 66/100), backed by strong 29.3% margins and 11.4% revenue growth. PBR offers better value entry with a 89.6% margin of safety. 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.

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Petroleo Brasileiro Petrobras SA ADR

ENERGY · OIL & GAS INTEGRATED · USA

Petrleo Brasileiro SA - Petrobras produces and sells oil and gas in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.

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