Applied Materials Inc (AMAT)vsBHP Group Limited (BHP)
AMAT
Applied Materials Inc
$369.34
-1.24%
TECHNOLOGY · Cap: $293.11B
BHP
BHP Group Limited
$68.77
+0.82%
BASIC MATERIALS · Cap: $166.46B
Smart Verdict
WallStSmart Research — data-driven comparison
BHP Group Limited generates 91% more annual revenue ($53.99B vs $28.21B). AMAT leads profitability with a 27.8% profit margin vs 19.0%. AMAT appears more attractively valued with a PEG of 1.70. BHP earns a higher WallStSmart Score of 64/100 (C+).
AMAT
Buy64
out of 100
Grade: C+
BHP
Buy64
out of 100
Grade: C+
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
+57.8%
Fair Value
$188.60
Current Price
$68.77
$119.83 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%
Strong operational efficiency at 40.7%
Large-cap with strong market position
Every $100 of equity generates 25 in profit
Attractively priced relative to earnings
Earnings expanding 27.5% YoY
Generating 4.3B in free cash flow
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
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 : BHP
The strongest argument for BHP centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 19.0% and operating margin at 40.7%. Revenue growth of 10.8% demonstrates continued momentum.
Bear Case : AMAT
The primary concerns for AMAT are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : BHP
The primary concerns for BHP are PEG Ratio.
Key Dynamics to Monitor
AMAT profiles as a declining stock while BHP is a mature play — different risk/reward profiles.
AMAT carries more volatility with a beta of 1.63 — expect wider price swings.
BHP is growing revenue faster at 10.8% — sustainability is the question.
BHP generates stronger free cash flow (4.3B), providing more financial flexibility.
Bottom Line
AMAT scores higher overall (64/100 vs 64/100), backed by strong 27.8% margins. BHP offers better value entry with a 57.8% margin of safety. 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.
Visit Website →BHP Group Limited
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
BHP Group engages in the natural resources business in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America and internationally. The company is headquartered in Melbourne, Australia.
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