WallStSmart

Applied Materials Inc (AMAT)vsSterling Construction Company Inc (STRL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Applied Materials Inc generates 906% more annual revenue ($29.02B vs $2.88B). AMAT leads profitability with a 29.3% profit margin vs 12.0%. STRL appears more attractively valued with a PEG of 1.47. AMAT earns a higher WallStSmart Score of 72/100 (B).

AMAT

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 9.5Value: 3.7Quality: 8.5
Piotroski: 4/9Altman Z: 4.98

STRL

Strong Buy

69

out of 100

Grade: B-

Growth: 9.3Profit: 8.0Value: 4.3Quality: 7.0
Piotroski: 4/9Altman Z: 2.39

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AMAT6 strengths · Avg: 9.7/10
Market CapQuality
$465.09B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.6%10/10

Every $100 of equity generates 36 in profit

Operating MarginProfitability
31.9%10/10

Strong operational efficiency at 31.9%

Altman Z-ScoreHealth
4.9810/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
29.3%9/10

Keeps 29 of every $100 in revenue as profit

Debt/EquityHealth
0.279/10

Conservative balance sheet, low leverage

STRL4 strengths · Avg: 9.5/10
Revenue GrowthGrowth
91.6%10/10

Revenue surging 91.6% year-over-year

EPS GrowthGrowth
141.4%10/10

Earnings expanding 141.4% YoY

Return on EquityProfitability
29.1%9/10

Every $100 of equity generates 29 in profit

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

Areas to Watch

AMAT3 concerns · Avg: 3.3/10
PEG RatioValuation
1.894/10

Expensive relative to growth rate

Price/BookValuation
15.0x4/10

Trading at 15.0x book value

P/E RatioValuation
55.3x2/10

Premium valuation, high expectations priced in

STRL2 concerns · Avg: 2.0/10
P/E RatioValuation
76.9x2/10

Premium valuation, high expectations priced in

Price/BookValuation
24.4x2/10

Trading at 24.4x book value

Comparative Analysis Report

WallStSmart Research

Bull 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 : STRL

The strongest argument for STRL centers on Revenue Growth, EPS Growth, Return on Equity. Revenue growth of 91.6% demonstrates continued momentum. PEG of 1.47 suggests the stock is reasonably priced for its growth.

Bear Case : AMAT

The primary concerns for AMAT are PEG Ratio, Price/Book, P/E Ratio. A P/E of 55.3x leaves little room for execution misses.

Bear Case : STRL

The primary concerns for STRL are P/E Ratio, Price/Book. A P/E of 76.9x leaves little room for execution misses.

Key Dynamics to Monitor

AMAT profiles as a mature stock while STRL is a growth play — different risk/reward profiles.

STRL carries more volatility with a beta of 1.82 — expect wider price swings.

STRL is growing revenue faster at 91.6% — sustainability is the question.

AMAT generates stronger free cash flow (208M), providing more financial flexibility.

Bottom Line

AMAT scores higher overall (72/100 vs 69/100), backed by strong 29.3% margins and 11.4% revenue growth. Both earn "Strong Buy" and "Strong 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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Sterling Construction Company Inc

INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA

Sterling Construction Company, Inc., a construction company, engages in residential construction, specialty services, and heavy civil activities primarily in the southern United States, the Rocky Mountain states, California, and Hawaii. The company is headquartered in The Woodlands, Texas.

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