Applied Materials Inc (AMAT)vsTE Connectivity Ltd (TEL)
AMAT
Applied Materials Inc
$369.34
-1.24%
TECHNOLOGY · Cap: $293.11B
TEL
TE Connectivity Ltd
$206.37
+2.78%
TECHNOLOGY · Cap: $60.58B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 56% more annual revenue ($28.21B vs $18.09B). AMAT leads profitability with a 27.8% profit margin vs 11.4%. TEL appears more attractively valued with a PEG of 1.14. TEL earns a higher WallStSmart Score of 74/100 (B).
AMAT
Buy64
out of 100
Grade: C+
TEL
Strong Buy74
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
+29.8%
Fair Value
$325.26
Current Price
$206.37
$118.89 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%
Large-cap with strong market position
Strong operational efficiency at 20.9%
Revenue surging 21.7% year-over-year
Earnings expanding 44.4% YoY
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 13.5x book value
Revenue declined 2.1%
Moderate valuation
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 : TEL
The strongest argument for TEL centers on Market Cap, Operating Margin, Revenue Growth. Revenue growth of 21.7% demonstrates continued momentum. PEG of 1.14 suggests the stock is reasonably priced for its growth.
Bear Case : AMAT
The primary concerns for AMAT are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : TEL
The primary concerns for TEL are P/E Ratio.
Key Dynamics to Monitor
AMAT profiles as a declining stock while TEL is a growth play — different risk/reward profiles.
AMAT carries more volatility with a beta of 1.63 — expect wider price swings.
TEL is growing revenue faster at 21.7% — sustainability is the question.
AMAT generates stronger free cash flow (1.0B), providing more financial flexibility.
Bottom Line
TEL scores higher overall (74/100 vs 64/100) and 21.7% 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 →TE Connectivity Ltd
TECHNOLOGY · ELECTRONIC COMPONENTS · USA
TE Connectivity is an American Swiss-domiciled technology company that designs and manufactures connectors and sensors for several industries, such as automotive, industrial equipment, data communication systems, aerospace, defense, medical, oil and gas, consumer electronics and energy.
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