Applied Materials Inc (AMAT)vsPalo Alto Networks Inc (PANW)
AMAT
Applied Materials Inc
$369.34
-1.24%
TECHNOLOGY · Cap: $293.11B
PANW
Palo Alto Networks Inc
$153.22
-2.54%
TECHNOLOGY · Cap: $128.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 185% more annual revenue ($28.21B vs $9.89B). AMAT leads profitability with a 27.8% profit margin vs 13.0%. 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+
PANW
Buy58
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
-81.9%
Fair Value
$84.24
Current Price
$153.22
$68.98 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 60.5% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
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 11.5x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : PANW
The strongest argument for PANW centers on EPS Growth, Debt/Equity, Market Cap. Revenue growth of 14.9% demonstrates continued momentum.
Bear Case : AMAT
The primary concerns for AMAT are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 87.3x leaves little room for execution misses.
Key Dynamics to Monitor
AMAT profiles as a declining stock while PANW is a value play — different risk/reward profiles.
AMAT carries more volatility with a beta of 1.63 — expect wider price swings.
PANW is growing revenue faster at 14.9% — 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 58/100), 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 →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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