Applied Materials, Inc. (AMAT) vs ASML Holding N.V. (ASML)

Applied Materials, Inc. and ASML Holding N.V. are both Semiconductor Equipment & Materials companies. ASML Holding N.V. is the larger, with a market value of $673.5B against $382.9B — 1.8× the size. Applied Materials, Inc. trades at the lower P/E: 41.6× against 54.2×. ASML Holding N.V. grew revenue faster over the last twelve months: 17.6% against 7.77%. ASML Holding N.V. has the higher net margin (30.1% vs 30.1%) and the higher return on invested capital (48.3% vs 24.9%). Both pay a dividend; ASML Holding N.V. yields more (0.80% vs 0.71%). Across the 23 metrics below, ASML Holding N.V. leads on 14 and Applied Materials, Inc. on 9.

Valuation

Metric AMAT ASML Semiconductor Equipment & Materials median
P/E 41.56 54.21 54.39
P/S 12.49 16.28 6.08
P/B 15.03 30.22 4.89
Price to free cash flow 66.95 60.12 60.92
EV/EBITDA 39.55 42.21 39.95
EV/Sales 12.40 16.17 6.36
Earnings yield 2.41% 1.84% 1.14%
Free cash flow yield 1.49% 1.66% 1.28%

Profitability

Metric AMAT ASML Semiconductor Equipment & Materials median
Gross margin 49.40% 52.76% 43.95%
Operating margin 29.64% 35.44% 10.32%
Net margin 30.05% 30.14% 7.45%
Free cash flow margin 18.25% 27.08% 6.77%
Return on equity 41.07% 0.00% 4.78%
Return on assets 23.84% 22.71% 3.62%
Return on invested capital 24.91% 48.33% 6.10%

Growth

Metric AMAT ASML Semiconductor Equipment & Materials median
Revenue growth (TTM) 7.77% 17.63% 14.60%
EPS growth (last fiscal year) 0.58% 34.25% —
Revenue growth, 5-year CAGR 10.52% 18.28% 8.85%
Net income growth, 5-year CAGR 14.10% 21.78% 0.00%

Health

Metric AMAT ASML Semiconductor Equipment & Materials median
Debt to equity 0.26 0.09 0.09
Current ratio 2.42 1.33 3.66
Net debt to EBITDA (0.23) (0.72) (0.49)

Dividend

Metric AMAT ASML Semiconductor Equipment & Materials median
Dividend yield 0.71% 0.80% 0.85%
Payout ratio 0.15 0.31 0.00

Size

Metric AMAT ASML Semiconductor Equipment & Materials median
Market cap 382.88b 673.45b 4.63b

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