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 $382.9B against $13.9B — 27.5× the size. Applied Materials, Inc. trades at the lower P/E: 41.6× against 107×. 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, Applied Materials, Inc. leads on 11 and Onto Innovation Inc. on 11.

Valuation

Metric AMAT ONTO Semiconductor Equipment & Materials median
P/E 41.56 106.93 54.39
P/S 12.49 12.69 6.08
P/B 15.03 7.39 4.89
Price to free cash flow 66.95 56.30 60.92
EV/EBITDA 39.55 63.89 39.95
EV/Sales 12.40 12.32 6.36
Earnings yield 2.41% 0.94% 1.14%
Free cash flow yield 1.49% 1.78% 1.28%

Profitability

Metric AMAT ONTO Semiconductor Equipment & Materials median
Gross margin 49.40% 50.36% 43.95%
Operating margin 29.64% 12.02% 10.32%
Net margin 30.05% 11.84% 7.45%
Free cash flow margin 18.25% 22.54% 6.77%
Return on equity 41.07% 6.82% 4.78%
Return on assets 23.84% 4.54% 3.62%
Return on invested capital 24.91% 5.56% 6.10%

Growth

Metric AMAT ONTO Semiconductor Equipment & Materials median
Revenue growth (TTM) 7.77% 8.08% 14.60%
EPS growth (last fiscal year) 0.58% (31.53%) —
Revenue growth, 5-year CAGR 10.52% 12.55% 8.85%
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 3.66
Net debt to EBITDA (0.23) (3.39) (0.49)

Dividend

Metric AMAT ONTO Semiconductor Equipment & Materials median
Dividend yield 0.71% — 0.85%
Payout ratio 0.15 0.00 0.00

Size

Metric AMAT ONTO Semiconductor Equipment & Materials median
Market cap 382.88b 13.94b 4.63b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack