Applied Materials Inc (AMAT)vsPalo Alto Networks Inc (PANW)
AMAT
Applied Materials Inc
$436.45
+14.97%
TECHNOLOGY · Cap: $439.79B
PANW
Palo Alto Networks Inc
$314.15
+3.67%
TECHNOLOGY · Cap: $273.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 174% more annual revenue ($29.02B vs $10.61B). AMAT leads profitability with a 29.3% profit margin vs 8.0%. AMAT appears more attractively valued with a PEG of 1.43. AMAT earns a higher WallStSmart Score of 74/100 (B).
AMAT
Strong Buy74
out of 100
Grade: B
PANW
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AMAT.
Margin of Safety
+32.8%
Fair Value
$467.52
Current Price
$314.15
$153.37 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 36 in profit
Strong operational efficiency at 31.9%
Safe zone — low bankruptcy risk
Keeps 29 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Mega-cap, among the largest globally
Revenue surging 31.1% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Trading at 14.5x book value
Premium valuation, high expectations priced in
Trading at 9.2x book value
ROE of 3.0% — below average capital efficiency
8.0% 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, Operating Margin. Profitability is solid with margins at 29.3% and operating margin at 31.9%. Revenue growth of 11.4% demonstrates continued momentum.
Bull Case : PANW
The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 31.1% demonstrates continued momentum.
Bear Case : AMAT
The primary concerns for AMAT are Price/Book, P/E Ratio. A P/E of 52.2x leaves little room for execution misses.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Return on Equity, Profit Margin. A P/E of 294.1x leaves little room for execution misses.
Key Dynamics to Monitor
AMAT profiles as a mature stock while PANW is a hypergrowth play — different risk/reward profiles.
AMAT carries more volatility with a beta of 1.57 — expect wider price swings.
PANW is growing revenue faster at 31.1% — sustainability is the question.
PANW generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
AMAT scores higher overall (74/100 vs 47/100), backed by strong 29.3% margins and 11.4% revenue growth. PANW offers better value entry with a 32.8% margin of safety. Both earn "Strong 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.
Visit Website →Palo Alto Networks Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Palo Alto Networks, Inc. provides cybersecurity platform solutions globally. The company is headquartered in Santa Clara, California.
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