Applied Materials Inc (AMAT)vsLockheed Martin Corporation (LMT)
AMAT
Applied Materials Inc
$369.34
-1.24%
TECHNOLOGY · Cap: $293.11B
LMT
Lockheed Martin Corporation
$624.20
+2.30%
INDUSTRIALS · Cap: $144.44B
Smart Verdict
WallStSmart Research — data-driven comparison
Lockheed Martin Corporation generates 166% more annual revenue ($75.05B vs $28.21B). AMAT leads profitability with a 27.8% profit margin vs 6.7%. LMT appears more attractively valued with a PEG of 1.34. LMT earns a higher WallStSmart Score of 65/100 (C+).
AMAT
Buy64
out of 100
Grade: C+
LMT
Buy65
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
+37.5%
Fair Value
$1005.26
Current Price
$624.20
$381.06 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%
Every $100 of equity generates 77 in profit
Large-cap with strong market position
Generating 2.8B 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%
Moderate valuation
1.6% earnings growth
6.7% margin — thin
Weak financial health signals
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 : LMT
The strongest argument for LMT centers on Return on Equity, Market Cap, Free Cash Flow. PEG of 1.34 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 : LMT
The primary concerns for LMT are P/E Ratio, EPS Growth, Profit Margin. Debt-to-equity of 3.23 is elevated, increasing financial risk.
Key Dynamics to Monitor
AMAT profiles as a declining stock while LMT is a value play — different risk/reward profiles.
AMAT carries more volatility with a beta of 1.63 — expect wider price swings.
LMT is growing revenue faster at 9.1% — sustainability is the question.
LMT generates stronger free cash flow (2.8B), providing more financial flexibility.
Bottom Line
LMT scores higher overall (65/100 vs 64/100). AMAT offers better value entry with a 19.1% 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 →Lockheed Martin Corporation
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Lockheed Martin Corporation is an American aerospace, defense, information security, and technology company with worldwide interests. It is headquartered in North Bethesda, Maryland, in the Washington, D.C., area.
Visit Website →Compare with Other SEMICONDUCTOR EQUIPMENT & MATERIALS Stocks
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