Applied Materials Inc (AMAT)vsIPG Photonics Corporation (IPGP)
AMAT
Applied Materials Inc
$369.34
-1.24%
TECHNOLOGY · Cap: $293.11B
IPGP
IPG Photonics Corporation
$127.01
+1.04%
TECHNOLOGY · Cap: $5.30B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 2711% more annual revenue ($28.21B vs $1.00B). AMAT leads profitability with a 27.8% profit margin vs 3.1%. AMAT appears more attractively valued with a PEG of 1.70. AMAT earns a higher WallStSmart Score of 64/100 (C+).
AMAT
Buy64
out of 100
Grade: C+
IPGP
Buy51
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
-224.7%
Fair Value
$34.16
Current Price
$127.01
$92.85 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%
Earnings expanding 69.3% YoY
Safe zone — low bankruptcy risk
Reasonable price relative to book value
17.1% 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%
Expensive relative to growth rate
ROE of 1.5% — below average capital efficiency
3.1% margin — thin
Operating margin of 2.1%
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 : IPGP
The strongest argument for IPGP centers on EPS Growth, Altman Z-Score, Price/Book. Revenue growth of 17.1% demonstrates continued momentum.
Bear Case : AMAT
The primary concerns for AMAT are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : IPGP
The primary concerns for IPGP are PEG Ratio, Return on Equity, Profit Margin. A P/E of 172.2x leaves little room for execution misses. Thin 3.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
AMAT profiles as a declining stock while IPGP is a growth play — different risk/reward profiles.
AMAT carries more volatility with a beta of 1.63 — expect wider price swings.
IPGP is growing revenue faster at 17.1% — 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 51/100), 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.
Visit Website →IPG Photonics Corporation
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
IPG Photonics is a manufacturer of fiber lasers.
Visit Website →Compare with Other SEMICONDUCTOR EQUIPMENT & MATERIALS Stocks
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