Applied Materials Inc (AMAT)vsUltra Clean Holdings Inc (UCTT)
AMAT
Applied Materials Inc
$453.01
+3.27%
TECHNOLOGY · Cap: $389.08B
UCTT
Ultra Clean Holdings Inc
$82.07
-12.40%
TECHNOLOGY · Cap: $4.88B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 1303% more annual revenue ($29.02B vs $2.07B). AMAT leads profitability with a 29.3% profit margin vs -9.4%. UCTT appears more attractively valued with a PEG of 1.30. AMAT earns a higher WallStSmart Score of 72/100 (B).
AMAT
Strong Buy72
out of 100
Grade: B
UCTT
Avoid34
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AMAT.
Margin of Safety
-35.5%
Fair Value
$41.29
Current Price
$82.07
$40.78 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 36 in profit
Strong operational efficiency at 31.9%
Safe zone — low bankruptcy risk
Keeps 29 of every $100 in revenue as profit
Conservative balance sheet, low leverage
No standout strengths identified
Areas to Watch
Expensive relative to growth rate
Trading at 15.0x book value
Premium valuation, high expectations priced in
2.9% revenue growth
Operating margin of 2.1%
Elevated debt levels
ROE of -30.9% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull 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 : UCTT
PEG of 1.30 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 46.1x leaves little room for execution misses.
Bear Case : UCTT
The primary concerns for UCTT are Revenue Growth, Operating Margin, Debt/Equity.
Key Dynamics to Monitor
AMAT profiles as a mature stock while UCTT is a turnaround play — different risk/reward profiles.
UCTT carries more volatility with a beta of 1.95 — expect wider price swings.
AMAT is growing revenue faster at 11.4% — sustainability is the question.
AMAT generates stronger free cash flow (208M), providing more financial flexibility.
Bottom Line
AMAT scores higher overall (72/100 vs 34/100), backed by strong 29.3% margins and 11.4% revenue growth. Both earn "Strong Buy" and "Avoid" 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 →Ultra Clean Holdings Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Ultra Clean Holdings, Inc. designs, designs and manufactures production tools, modules and subsystems for the semiconductor and display capital equipment markets in the United States and internationally. The company is headquartered in Hayward, California.
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