Applied Materials, Inc. (AMAT) vs Onto Innovation Inc. (ONTO)

Applied Materials, Inc. and Onto Innovation Inc. are both Semiconductor Equipment & Materials companies. Applied Materials, Inc. is the larger, with a market value of $253.4B against $7.7B — 33.1× the size. Applied Materials, Inc. trades at the lower P/E: 27.7× against 58.7×. Onto Innovation Inc. grew revenue faster over the last twelve months: 8.08% against 7.77%. Applied Materials, Inc. has the higher net margin (30.1% vs 11.8%) and the higher return on invested capital (24.9% vs 5.56%). Across the 22 metrics below, Onto Innovation Inc. leads on 12 and Applied Materials, Inc. on 10.

Valuation

Metric AMAT ONTO Semiconductor Equipment & Materials median
P/E 27.69 58.67 33.70
P/S 8.32 6.96 4.22
P/B 10.01 4.06 2.94
Price to free cash flow 44.60 30.89 31.49
EV/EBITDA 26.26 34.20 22.64
EV/Sales 8.23 6.60 4.97
Earnings yield 3.61% 1.70% 2.02%
Free cash flow yield 2.24% 3.24% 2.27%

Profitability

Metric AMAT ONTO Semiconductor Equipment & Materials median
Gross margin 49.40% 50.36% 46.86%
Operating margin 29.64% 12.02% 12.02%
Net margin 30.05% 11.84% 10.16%
Free cash flow margin 18.25% 22.54% 6.73%
Return on equity 41.07% 6.82% 5.31%
Return on assets 23.84% 4.54% 4.10%
Return on invested capital 24.91% 5.56% 6.36%

Growth

Metric AMAT ONTO Semiconductor Equipment & Materials median
Revenue growth (TTM) 7.77% 8.08% 15.82%
EPS growth (last fiscal year) 0.58% (31.53%) (4.56%)
Revenue growth, 5-year CAGR 10.52% 12.55% 10.11%
Net income growth, 5-year CAGR 14.10% 34.54% 0.00%

Health

Metric AMAT ONTO Semiconductor Equipment & Materials median
Debt to equity 0.26 0.77 0.09
Current ratio 2.42 9.73 3.56
Net debt to EBITDA (0.23) (3.39) (0.49)

Dividend

Metric AMAT ONTO Semiconductor Equipment & Materials median
Dividend yield 0.00% — 0.59%
Payout ratio 0.00 — 0.16

Size

Metric AMAT ONTO Semiconductor Equipment & Materials median
Market cap 253.36b 7.66b 3.04b

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