Applied Materials, Inc. (AMAT) vs Entegris, Inc. (ENTG)

Applied Materials, Inc. and Entegris, Inc. are both Semiconductor Equipment & Materials companies. Applied Materials, Inc. is the larger, with a market value of $382.9B against $23.0B — 16.7× the size. Applied Materials, Inc. trades at the lower P/E: 41.6× against 75.9×. Applied Materials, Inc. grew revenue faster over the last twelve months: 7.77% against 3.20%. Applied Materials, Inc. has the higher net margin (30.1% vs 9.18%) and the higher return on invested capital (24.9% vs 4.60%). Both pay a dividend; Applied Materials, Inc. yields more (0.71% vs 0.26%). Across the 23 metrics below, Applied Materials, Inc. leads on 15 and Entegris, Inc. on 8.

Valuation

Metric AMAT ENTG Semiconductor Equipment & Materials median
P/E 41.56 75.95 54.39
P/S 12.49 6.98 6.08
P/B 15.03 5.58 4.89
Price to free cash flow 66.95 40.35 60.92
EV/EBITDA 39.55 29.15 39.95
EV/Sales 12.40 7.93 6.36
Earnings yield 2.41% 1.32% 1.14%
Free cash flow yield 1.49% 2.48% 1.28%

Profitability

Metric AMAT ENTG Semiconductor Equipment & Materials median
Gross margin 49.40% 45.48% 43.95%
Operating margin 29.64% 16.05% 10.32%
Net margin 30.05% 9.18% 7.45%
Free cash flow margin 18.25% 17.29% 6.77%
Return on equity 41.07% 7.67% 4.78%
Return on assets 23.84% 3.62% 3.62%
Return on invested capital 24.91% 4.60% 6.10%

Growth

Metric AMAT ENTG Semiconductor Equipment & Materials median
Revenue growth (TTM) 7.77% 3.20% 14.60%
EPS growth (last fiscal year) 0.58% (19.69%) —
Revenue growth, 5-year CAGR 10.52% 11.45% 8.85%
Net income growth, 5-year CAGR 14.10% (4.40%) 0.00%

Health

Metric AMAT ENTG Semiconductor Equipment & Materials median
Debt to equity 0.26 0.83 0.09
Current ratio 2.42 3.05 3.66
Net debt to EBITDA (0.23) 3.90 (0.49)

Dividend

Metric AMAT ENTG Semiconductor Equipment & Materials median
Dividend yield 0.71% 0.26% 0.85%
Payout ratio 0.15 0.74 0.00

Size

Metric AMAT ENTG Semiconductor Equipment & Materials median
Market cap 382.88b 22.99b 4.63b

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