WallStSmart

Applied Materials Inc (AMAT)vsOmnicom Group Inc (OMC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Applied Materials Inc generates 63% more annual revenue ($28.21B vs $17.27B). AMAT leads profitability with a 27.8% profit margin vs -32.0%. AMAT appears more attractively valued with a PEG of 1.70. 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

OMC

Hold

49

out of 100

Grade: D+

Growth: 5.3Profit: 6.0Value: 4.0Quality: 3.5
Piotroski: 1/9Altman Z: 0.76
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AMATUndervalued (+18.0%)

Margin of Safety

+18.0%

Fair Value

$456.30

Current Price

$373.99

$82.31 discount

UndervaluedFair: $456.30Overvalued

Intrinsic value data unavailable for OMC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AMAT6 strengths · Avg: 9.5/10
Market CapQuality
$283.37B10/10

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%

OMC4 strengths · Avg: 8.5/10
Return on EquityProfitability
48.0%10/10

Every $100 of equity generates 48 in profit

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
27.9%8/10

Revenue surging 27.9% year-over-year

Free Cash FlowQuality
$3.00B8/10

Generating 3.0B in free cash flow

Areas to Watch

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

Expensive relative to growth rate

P/E RatioValuation
36.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
13.7x4/10

Trading at 13.7x book value

Revenue GrowthGrowth
-2.1%2/10

Revenue declined 2.1%

OMC4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
15.972/10

Expensive relative to growth rate

EPS GrowthGrowth
-10.3%2/10

Earnings declined 10.3%

Altman Z-ScoreHealth
0.762/10

Distress zone — elevated risk

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 : OMC

The strongest argument for OMC centers on Return on Equity, Price/Book, Revenue Growth. Revenue growth of 27.9% demonstrates continued momentum.

Bear Case : AMAT

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

Bear Case : OMC

The primary concerns for OMC are Piotroski F-Score, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

AMAT profiles as a declining stock while OMC is a growth play — different risk/reward profiles.

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

OMC is growing revenue faster at 27.9% — sustainability is the question.

OMC generates stronger free cash flow (3.0B), providing more financial flexibility.

Bottom Line

AMAT scores higher overall (64/100 vs 49/100), 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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Omnicom Group Inc

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

Omnicom Group Inc. is an American global media, marketing and corporate communications holding company, headquartered in New York City.

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