Applied Materials Inc (AMAT)vsResMed Inc (RMD)
AMAT
Applied Materials Inc
$369.34
-1.24%
TECHNOLOGY · Cap: $293.11B
RMD
ResMed Inc
$226.31
-0.82%
HEALTHCARE · Cap: $33.31B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 423% more annual revenue ($28.21B vs $5.40B). AMAT leads profitability with a 27.8% profit margin vs 27.5%. RMD appears more attractively valued with a PEG of 1.39. RMD earns a higher WallStSmart Score of 70/100 (B).
AMAT
Buy64
out of 100
Grade: C+
RMD
Strong Buy70
out of 100
Grade: B
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
+14.4%
Fair Value
$303.30
Current Price
$226.31
$76.99 discount
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%
Strong operational efficiency at 35.2%
Safe zone — low bankruptcy risk
Every $100 of equity generates 26 in profit
Keeps 28 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 13.5x book value
Revenue declined 2.1%
No major concerns identified
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 : RMD
The strongest argument for RMD centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 27.5% and operating margin at 35.2%. Revenue growth of 11.0% demonstrates continued momentum.
Bear Case : AMAT
The primary concerns for AMAT are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : RMD
No major red flags identified for RMD, but monitor valuation.
Key Dynamics to Monitor
AMAT profiles as a declining stock while RMD is a mature play — different risk/reward profiles.
AMAT carries more volatility with a beta of 1.63 — expect wider price swings.
RMD is growing revenue faster at 11.0% — sustainability is the question.
AMAT generates stronger free cash flow (1.0B), providing more financial flexibility.
Bottom Line
RMD scores higher overall (70/100 vs 64/100), backed by strong 27.5% margins and 11.0% 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.
Visit Website →ResMed Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
ResMed is a San Diego, California-based medical equipment company. It primarily provides cloud-connectable medical devices for the treatment of sleep apnea (such as CPAP devices and masks), chronic obstructive pulmonary disease (COPD), and other respiratory conditions.
Visit Website →Compare with Other SEMICONDUCTOR EQUIPMENT & MATERIALS Stocks
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