Abbott Laboratories (ABT)vsApplied Materials Inc (AMAT)
ABT
Abbott Laboratories
$104.83
-0.27%
HEALTHCARE · Cap: $180.82B
AMAT
Applied Materials Inc
$369.34
-8.34%
TECHNOLOGY · Cap: $293.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Abbott Laboratories generates 57% more annual revenue ($44.33B vs $28.21B). AMAT leads profitability with a 27.8% profit margin vs 14.7%. ABT appears more attractively valued with a PEG of 1.52. AMAT earns a higher WallStSmart Score of 64/100 (C+).
ABT
Buy51
out of 100
Grade: C-
AMAT
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-315.5%
Fair Value
$25.23
Current Price
$104.83
$79.60 premium
Margin of Safety
+19.1%
Fair Value
$456.30
Current Price
$369.34
$86.96 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Strong operational efficiency at 21.6%
Generating 2.6B in free cash flow
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%
Areas to Watch
Expensive relative to growth rate
Moderate valuation
4.4% revenue growth
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 13.5x book value
Revenue declined 2.1%
Comparative Analysis Report
WallStSmart ResearchBull Case : ABT
The strongest argument for ABT centers on Market Cap, Operating Margin, Free Cash Flow.
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%.
Bear Case : ABT
The primary concerns for ABT are PEG Ratio, P/E Ratio, Revenue Growth.
Bear Case : AMAT
The primary concerns for AMAT are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
ABT profiles as a value stock while AMAT is a declining play — different risk/reward profiles.
AMAT carries more volatility with a beta of 1.63 — expect wider price swings.
ABT is growing revenue faster at 4.4% — sustainability is the question.
ABT generates stronger free cash flow (2.6B), providing more financial flexibility.
Bottom Line
AMAT scores higher overall (64/100 vs 51/100), backed by strong 27.8% margins. Both earn "Buy" and "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.
Abbott Laboratories
HEALTHCARE · MEDICAL DEVICES · USA
Abbott Laboratories is an American multinational medical devices and health care company with headquarters in Abbott Park, Illinois, United States. The company was founded by Chicago physician Wallace Calvin Abbott in 1888 to formulate known drugs; today, it sells medical devices, diagnostics, branded generic medicines and nutritional products. It split off its research-based pharmaceuticals business into AbbVie in 2013.
Visit Website →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 →Compare with Other MEDICAL DEVICES Stocks
Want to dig deeper into these stocks?