Applied Materials Inc (AMAT)vsServiceNow Inc (NOW)
AMAT
Applied Materials Inc
$369.34
-1.24%
TECHNOLOGY · Cap: $293.11B
NOW
ServiceNow Inc
$103.06
-1.52%
TECHNOLOGY · Cap: $110.42B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 112% more annual revenue ($28.21B vs $13.28B). AMAT leads profitability with a 27.8% profit margin vs 13.2%. NOW appears more attractively valued with a PEG of 1.06. AMAT earns a higher WallStSmart Score of 64/100 (C+).
AMAT
Buy64
out of 100
Grade: C+
NOW
Buy56
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
-404.2%
Fair Value
$20.44
Current Price
$103.06
$82.62 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%
Large-cap with strong market position
Revenue surging 20.7% year-over-year
Generating 2.0B 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%
Trading at 8.3x book value
3.4% earnings growth
Distress zone — elevated risk
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 : NOW
The strongest argument for NOW centers on Market Cap, Revenue Growth, Free Cash Flow. Revenue growth of 20.7% demonstrates continued momentum. PEG of 1.06 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 : NOW
The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 62.7x leaves little room for execution misses.
Key Dynamics to Monitor
AMAT profiles as a declining stock while NOW is a growth play — different risk/reward profiles.
AMAT carries more volatility with a beta of 1.63 — expect wider price swings.
NOW is growing revenue faster at 20.7% — sustainability is the question.
NOW generates stronger free cash flow (2.0B), providing more financial flexibility.
Bottom Line
AMAT scores higher overall (64/100 vs 56/100), 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 →ServiceNow Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
ServiceNow is an American software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.
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