Applied Materials Inc (AMAT)vsAlibaba Group Holding Ltd (BABA)
AMAT
Applied Materials Inc
$369.34
-1.24%
TECHNOLOGY · Cap: $293.11B
BABA
Alibaba Group Holding Ltd
$129.87
+3.50%
CONSUMER CYCLICAL · Cap: $299.57B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 3504% more annual revenue ($1.02T vs $28.21B). AMAT leads profitability with a 27.8% profit margin vs 8.9%. BABA appears more attractively valued with a PEG of 1.56. AMAT earns a higher WallStSmart Score of 64/100 (C+).
AMAT
Buy64
out of 100
Grade: C+
BABA
Hold49
out of 100
Grade: D+
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
-298.4%
Fair Value
$38.22
Current Price
$129.87
$91.65 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
Generating 36.0B in free cash flow
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 13.5x book value
Revenue declined 2.1%
Expensive relative to growth rate
1.7% revenue growth
Earnings declined 70.9%
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 : BABA
The strongest argument for BABA centers on Market Cap, Free Cash Flow, Price/Book.
Bear Case : AMAT
The primary concerns for AMAT are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : BABA
The primary concerns for BABA are PEG Ratio, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
AMAT profiles as a declining stock while BABA is a value play — different risk/reward profiles.
AMAT carries more volatility with a beta of 1.63 — expect wider price swings.
BABA is growing revenue faster at 1.7% — sustainability is the question.
BABA generates stronger free cash flow (36.0B), providing more financial flexibility.
Bottom Line
AMAT scores higher overall (64/100 vs 49/100), backed by strong 27.8% margins. Both earn "Buy" and "Hold" 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 →Alibaba Group Holding Ltd
CONSUMER CYCLICAL · INTERNET RETAIL · USA
Alibaba Group Holding Limited, also known as Alibaba Group and Alibaba.com, is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. Founded on 28 June 1999 in Hangzhou, Zhejiang, the company provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services via web portals, as well as electronic payment services, shopping search engines and cloud computing services. It owns and operates a diverse portfolio of companies around the world in numerous business sectors.
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