WallStSmart

Applied Materials Inc (AMAT)vsDaqo New Energy Corp ADR (DQ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Applied Materials Inc generates 4140% more annual revenue ($28.21B vs $665.41M). AMAT leads profitability with a 27.8% profit margin vs -25.6%. DQ appears more attractively valued with a PEG of 0.17. 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

DQ

Hold

46

out of 100

Grade: D+

Growth: 3.3Profit: 2.0Value: 6.7Quality: 7.8
Piotroski: 4/9Altman Z: 7.28
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AMATUndervalued (+19.1%)

Margin of Safety

+19.1%

Fair Value

$456.30

Current Price

$369.34

$86.96 discount

UndervaluedFair: $456.30Overvalued

Intrinsic value data unavailable for DQ.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AMAT6 strengths · Avg: 9.5/10
Market CapQuality
$293.11B10/10

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%

DQ3 strengths · Avg: 10.0/10
PEG RatioValuation
0.1710/10

Growing faster than its price suggests

Price/BookValuation
0.3x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
7.2810/10

Safe zone — low bankruptcy risk

Areas to Watch

AMAT4 concerns · Avg: 3.5/10
PEG RatioValuation
1.704/10

Expensive relative to growth rate

P/E RatioValuation
37.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
13.5x4/10

Trading at 13.5x book value

Revenue GrowthGrowth
-2.1%2/10

Revenue declined 2.1%

DQ4 concerns · Avg: 2.0/10
Market CapQuality
$1.39B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-3.7%2/10

ROE of -3.7% — below average capital efficiency

EPS GrowthGrowth
-93.3%2/10

Earnings declined 93.3%

Profit MarginProfitability
-25.6%1/10

Currently unprofitable

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 : DQ

The strongest argument for DQ centers on PEG Ratio, Price/Book, Altman Z-Score. Revenue growth of 13.5% demonstrates continued momentum. PEG of 0.17 suggests the stock is reasonably priced for its growth.

Bear Case : AMAT

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

Bear Case : DQ

The primary concerns for DQ are Market Cap, Return on Equity, EPS Growth.

Key Dynamics to Monitor

AMAT profiles as a declining stock while DQ is a turnaround play — different risk/reward profiles.

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

DQ is growing revenue faster at 13.5% — 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 46/100), 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.

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Daqo New Energy Corp ADR

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · China

Daqo New Energy Corp. The company is headquartered in Shanghai, the People's Republic of China.

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