WallStSmart

Applied Materials Inc (AMAT)vsFormFactor Inc (FORM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Applied Materials Inc generates 3494% more annual revenue ($28.21B vs $784.99M). AMAT leads profitability with a 27.8% profit margin vs 6.9%. FORM appears more attractively valued with a PEG of 1.39. 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

FORM

Buy

53

out of 100

Grade: C-

Growth: 6.7Profit: 5.0Value: 4.7Quality: 8.5
Piotroski: 2/9Altman Z: 4.73
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
FORMSignificantly Overvalued (-197.5%)

Margin of Safety

-197.5%

Fair Value

$32.29

Current Price

$108.07

$75.78 premium

UndervaluedFair: $32.29Overvalued

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%

FORM3 strengths · Avg: 10.0/10
EPS GrowthGrowth
131.8%10/10

Earnings expanding 131.8% YoY

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7310/10

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%

FORM4 concerns · Avg: 3.3/10
Price/BookValuation
8.1x4/10

Trading at 8.1x book value

Return on EquityProfitability
5.5%3/10

ROE of 5.5% — below average capital efficiency

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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 : FORM

The strongest argument for FORM centers on EPS Growth, Debt/Equity, Altman Z-Score. Revenue growth of 13.6% demonstrates continued momentum. PEG of 1.39 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 : FORM

The primary concerns for FORM are Price/Book, Return on Equity, Profit Margin. A P/E of 152.9x leaves little room for execution misses.

Key Dynamics to Monitor

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

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

FORM is growing revenue faster at 13.6% — 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 53/100), 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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FormFactor Inc

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

FormFactor, Inc. designs, manufactures, and sells probe cards, analytical probes, probe stations, metrology systems, thermal systems, and cryogenic systems to semiconductor companies and scientific institutions. The company is headquartered in Livermore, California.

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