Applied Materials Inc (AMAT)vsBroadcom Inc (AVGO)
AMAT
Applied Materials Inc
$369.34
-1.24%
TECHNOLOGY · Cap: $293.11B
AVGO
Broadcom Inc
$318.81
+0.16%
TECHNOLOGY · Cap: $1.51T
Smart Verdict
WallStSmart Research — data-driven comparison
Broadcom Inc generates 142% more annual revenue ($68.28B vs $28.21B). AVGO leads profitability with a 36.6% profit margin vs 27.8%. AVGO appears more attractively valued with a PEG of 0.68. AVGO earns a higher WallStSmart Score of 76/100 (B+).
AMAT
Buy64
out of 100
Grade: C+
AVGO
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+19.1%
Fair Value
$456.30
Current Price
$369.34
$86.96 discount
Margin of Safety
-32.6%
Fair Value
$240.08
Current Price
$318.81
$78.73 premium
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%
Mega-cap, among the largest globally
Every $100 of equity generates 33 in profit
Keeps 37 of every $100 in revenue as profit
Strong operational efficiency at 31.8%
Growing faster than its price suggests
16.4% revenue growth
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 13.5x book value
Revenue declined 2.1%
1.9% earnings growth
Distress zone — elevated risk
Premium valuation, high expectations priced in
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 : AVGO
The strongest argument for AVGO centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 36.6% and operating margin at 31.8%. Revenue growth of 16.4% demonstrates continued momentum.
Bear Case : AMAT
The primary concerns for AMAT are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : AVGO
The primary concerns for AVGO are EPS Growth, Altman Z-Score, P/E Ratio. A P/E of 62.3x leaves little room for execution misses.
Key Dynamics to Monitor
AMAT profiles as a declining stock while AVGO is a growth play — different risk/reward profiles.
AMAT carries more volatility with a beta of 1.63 — expect wider price swings.
AVGO is growing revenue faster at 16.4% — sustainability is the question.
AVGO generates stronger free cash flow (8.0B), providing more financial flexibility.
Bottom Line
AVGO scores higher overall (76/100 vs 64/100), backed by strong 36.6% margins and 16.4% revenue growth. AMAT offers better value entry with a 19.1% margin of safety. Both earn "Strong 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.
Visit Website →Broadcom Inc
TECHNOLOGY · SEMICONDUCTORS · USA
Broadcom Inc. is an American designer, developer, manufacturer and global supplier of a wide range of semiconductor and infrastructure software products. Broadcom's product offerings serve the data center, networking, software, broadband, wireless, and storage and industrial markets.
Visit Website →Compare with Other SEMICONDUCTOR EQUIPMENT & MATERIALS Stocks
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