WallStSmart

Applied Materials Inc (AMAT)vsQnity Electronics, Inc (Q)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Applied Materials Inc generates 493% more annual revenue ($28.21B vs $4.75B). AMAT leads profitability with a 27.8% profit margin vs 14.6%. AMAT appears more attractively valued with a PEG of 1.66. AMAT earns a higher WallStSmart Score of 64/100 (C+).

AMAT

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 9.5Value: 9.3Quality: 8.5
Piotroski: 4/9Altman Z: 4.98

Q

Hold

49

out of 100

Grade: D+

Growth: 3.3Profit: 6.0Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AMATUndervalued (+23.2%)

Margin of Safety

+23.2%

Fair Value

$465.19

Current Price

$349.47

$115.72 discount

UndervaluedFair: $465.19Overvalued
QSignificantly Overvalued (-410.3%)

Margin of Safety

-410.3%

Fair Value

$22.44

Current Price

$112.02

$89.58 premium

UndervaluedFair: $22.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AMAT6 strengths · Avg: 9.5/10
Market CapQuality
$279.72B10/10

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%

Q1 strengths · Avg: 8.0/10
Operating MarginProfitability
20.4%8/10

Strong operational efficiency at 20.4%

Areas to Watch

AMAT4 concerns · Avg: 3.5/10
PEG RatioValuation
1.664/10

Expensive relative to growth rate

P/E RatioValuation
35.5x4/10

Premium valuation, high expectations priced in

Price/BookValuation
12.8x4/10

Trading at 12.8x book value

Revenue GrowthGrowth
-2.1%2/10

Revenue declined 2.1%

Q4 concerns · Avg: 3.3/10
PEG RatioValuation
2.294/10

Expensive relative to growth rate

P/E RatioValuation
34.0x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
8.0%3/10

ROE of 8.0% — below average capital efficiency

EPS GrowthGrowth
-52.8%2/10

Earnings declined 52.8%

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 : Q

The strongest argument for Q centers on Operating Margin.

Bear Case : AMAT

The primary concerns for AMAT are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : Q

The primary concerns for Q are PEG Ratio, P/E Ratio, Return on Equity.

Key Dynamics to Monitor

AMAT profiles as a declining stock while Q is a value play — different risk/reward profiles.

Q is growing revenue faster at 8.1% — sustainability is the question.

AMAT generates stronger free cash flow (1.0B), providing more financial flexibility.

Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AMAT scores higher overall (64/100 vs 49/100), 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.

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Qnity Electronics, Inc

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

IQVIA Holdings Inc. provides integrated information and technology-enabled healthcare services in the Americas, Europe, Africa, and Asia-Pacific. The company is headquartered in Durham, North Carolina.

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