Applied Materials Inc (AMAT)vsWestern Digital Corporation (WDC)
AMAT
Applied Materials Inc
$391.38
+4.97%
TECHNOLOGY · Cap: $313.07B
WDC
Western Digital Corporation
$442.36
+2.51%
TECHNOLOGY · Cap: $152.47B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 140% more annual revenue ($28.21B vs $11.78B). WDC leads profitability with a 55.3% profit margin vs 27.8%. WDC appears more attractively valued with a PEG of 0.87. WDC earns a higher WallStSmart Score of 79/100 (B+).
AMAT
Buy64
out of 100
Grade: C+
WDC
Strong Buy79
out of 100
Grade: B+
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%
Every $100 of equity generates 86 in profit
Keeps 55 of every $100 in revenue as profit
Strong operational efficiency at 37.0%
Revenue surging 45.5% year-over-year
Earnings expanding 477.2% YoY
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
Trading at 14.3x book value
Premium valuation, high expectations priced in
Revenue declined 2.1%
Moderate valuation
Trading at 21.2x book value
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 : WDC
The strongest argument for WDC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 55.3% and operating margin at 37.0%. Revenue growth of 45.5% demonstrates continued momentum.
Bear Case : AMAT
The primary concerns for AMAT are PEG Ratio, Price/Book, P/E Ratio. A P/E of 40.4x leaves little room for execution misses.
Bear Case : WDC
The primary concerns for WDC are P/E Ratio, Price/Book.
Key Dynamics to Monitor
AMAT profiles as a declining stock while WDC is a growth play — different risk/reward profiles.
WDC carries more volatility with a beta of 2.16 — expect wider price swings.
WDC is growing revenue faster at 45.5% — sustainability is the question.
AMAT generates stronger free cash flow (1.0B), providing more financial flexibility.
Bottom Line
WDC scores higher overall (79/100 vs 64/100), backed by strong 55.3% margins and 45.5% revenue growth. 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 →Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
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