WallStSmart

Applied Materials Inc (AMAT)vsASML Holding NV ADR (ASML)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ASML Holding NV ADR generates 16% more annual revenue ($32.67B vs $28.21B). ASML leads profitability with a 29.4% profit margin vs 27.8%. 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

ASML

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 9.5Value: 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
ASMLSignificantly Overvalued (-195.5%)

Margin of Safety

-195.5%

Fair Value

$516.62

Current Price

$1366.39

$849.77 premium

UndervaluedFair: $516.62Overvalued

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%

ASML5 strengths · Avg: 9.8/10
Market CapQuality
$545.47B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
50.5%10/10

Every $100 of equity generates 51 in profit

Operating MarginProfitability
35.3%10/10

Strong operational efficiency at 35.3%

Free Cash FlowQuality
$10.57B10/10

Generating 10.6B in free cash flow

Profit MarginProfitability
29.4%9/10

Keeps 29 of every $100 in revenue as profit

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%

ASML4 concerns · Avg: 3.0/10
PEG RatioValuation
2.334/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

P/E RatioValuation
49.3x2/10

Premium valuation, high expectations priced in

Price/BookValuation
23.4x2/10

Trading at 23.4x book value

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 : ASML

The strongest argument for ASML centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 29.4% and operating margin at 35.3%.

Bear Case : AMAT

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

Bear Case : ASML

The primary concerns for ASML are PEG Ratio, Revenue Growth, P/E Ratio. A P/E of 49.3x leaves little room for execution misses.

Key Dynamics to Monitor

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

AMAT carries more volatility with a beta of 1.63 — expect wider price swings.

ASML is growing revenue faster at 4.9% — sustainability is the question.

ASML generates stronger free cash flow (10.6B), providing more financial flexibility.

Bottom Line

AMAT scores higher overall (64/100 vs 56/100), 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.

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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ASML Holding NV ADR

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

ASML Holding NV develops, produces, markets, sells and services advanced semiconductor equipment systems consisting of lithography, metrology and inspection related systems for memory and logic chip manufacturers. The company is headquartered in Veldhoven, the Netherlands.

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