WallStSmart

Applied Materials Inc (AMAT)vsRLX Technology Inc (RLX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Applied Materials Inc generates 680% more annual revenue ($28.21B vs $3.62B). AMAT leads profitability with a 27.8% profit margin vs 25.5%. RLX trades at a lower P/E of 21.6x. RLX earns a higher WallStSmart Score of 68/100 (B-).

AMAT

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 9.5Value: 9.3Quality: 8.5
Piotroski: 4/9Altman Z: 4.98

RLX

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 6.0Value: 8.3Quality: 7.8
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AMATUndervalued (+19.1%)

Margin of Safety

+19.1%

Fair Value

$456.30

Current Price

$369.34

$86.96 discount

UndervaluedFair: $456.30Overvalued
RLXUndervalued (+47.9%)

Margin of Safety

+47.9%

Fair Value

$4.68

Current Price

$2.21

$2.47 discount

UndervaluedFair: $4.68Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AMAT6 strengths · Avg: 9.5/10
Market CapQuality
$293.11B10/10

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%

RLX5 strengths · Avg: 9.8/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
46.8%10/10

Revenue surging 46.8% year-over-year

EPS GrowthGrowth
81.9%10/10

Earnings expanding 81.9% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Profit MarginProfitability
25.5%9/10

Keeps 26 of every $100 in revenue as profit

Areas to Watch

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

Expensive relative to growth rate

P/E RatioValuation
37.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
13.5x4/10

Trading at 13.5x book value

Revenue GrowthGrowth
-2.1%2/10

Revenue declined 2.1%

RLX1 concerns · Avg: 3.0/10
Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

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 : RLX

The strongest argument for RLX centers on Price/Book, Revenue Growth, EPS Growth. Profitability is solid with margins at 25.5% and operating margin at 11.0%. Revenue growth of 46.8% demonstrates continued momentum.

Bear Case : AMAT

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

Bear Case : RLX

The primary concerns for RLX are Return on Equity.

Key Dynamics to Monitor

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

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

RLX is growing revenue faster at 46.8% — sustainability is the question.

AMAT generates stronger free cash flow (1.0B), providing more financial flexibility.

Bottom Line

RLX scores higher overall (68/100 vs 64/100), backed by strong 25.5% margins and 46.8% revenue growth. AMAT offers better value entry with a 19.1% margin of safety. Both earn "Strong 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.

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RLX Technology Inc

CONSUMER DEFENSIVE · TOBACCO · China

RLX Technology Inc., researches, develops, manufactures, distributes and sells e-vapor products in the People's Republic of China. The company is headquartered in Beijing, China.

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