Applied Materials Inc (AMAT)vsAmbarella Inc (AMBA)
AMAT
Applied Materials Inc
$435.44
+6.04%
TECHNOLOGY · Cap: $325.89B
AMBA
Ambarella Inc
$76.30
+2.73%
TECHNOLOGY · Cap: $3.31B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 7121% more annual revenue ($28.21B vs $390.70M). AMAT leads profitability with a 27.8% profit margin vs -19.4%. AMAT appears more attractively valued with a PEG of 1.96. AMAT earns a higher WallStSmart Score of 64/100 (C+).
AMAT
Buy64
out of 100
Grade: C+
AMBA
Avoid32
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AMAT.
Margin of Safety
+19.3%
Fair Value
$82.90
Current Price
$76.30
$6.60 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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%
Conservative balance sheet, low leverage
Revenue surging 20.1% year-over-year
Areas to Watch
Expensive relative to growth rate
Trading at 15.9x book value
Premium valuation, high expectations priced in
Revenue declined 2.1%
Expensive relative to growth rate
0.0% earnings growth
Weak financial health signals
ROE of -13.1% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull 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 : AMBA
The strongest argument for AMBA centers on Debt/Equity, Revenue Growth. Revenue growth of 20.1% demonstrates continued momentum.
Bear Case : AMAT
The primary concerns for AMAT are PEG Ratio, Price/Book, P/E Ratio. A P/E of 42.2x leaves little room for execution misses.
Bear Case : AMBA
The primary concerns for AMBA are PEG Ratio, EPS Growth, Piotroski F-Score.
Key Dynamics to Monitor
AMAT profiles as a declining stock while AMBA is a growth play — different risk/reward profiles.
AMBA carries more volatility with a beta of 2.16 — expect wider price swings.
AMBA is growing revenue faster at 20.1% — sustainability is the question.
AMAT generates stronger free cash flow (1.0B), providing more financial flexibility.
Bottom Line
AMAT scores higher overall (64/100 vs 32/100), backed by strong 27.8% margins. AMBA offers better value entry with a 19.3% margin of safety. Both earn "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 →Ambarella Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Ambarella, Inc. develops semiconductor video solutions that enable high definition (HD) and ultra HD compression, image processing, and deep neural network processing globally. The company is headquartered in Santa Clara, California.
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