Applied Materials, Inc. (AMAT) vs Qnity Electronics, Inc. (Q)

Applied Materials, Inc. and Qnity Electronics, Inc. are both Semiconductor Equipment & Materials companies. Applied Materials, Inc. is the larger, with a market value of $382.9B against $25.6B — 15.0× the size. Applied Materials, Inc. trades at the lower P/E: 41.6× against 44.5×. Applied Materials, Inc. has the higher net margin (30.1% vs 11.3%) and the higher return on invested capital (24.9% vs 6.10%). Across the 19 metrics below, Applied Materials, Inc. leads on 13 and Qnity Electronics, Inc. on 6.

Valuation

Metric AMAT Q Semiconductor Equipment & Materials median
P/E 41.56 44.54 54.39
P/S 12.49 5.01 6.08
P/B 15.03 3.46 4.89
Price to free cash flow 66.95 31.44 60.92
EV/EBITDA 39.55 20.55 39.95
EV/Sales 12.40 5.60 6.36
Earnings yield 2.41% 2.25% 1.14%
Free cash flow yield 1.49% 3.18% 1.28%

Profitability

Metric AMAT Q Semiconductor Equipment & Materials median
Gross margin 49.40% 46.22% 43.95%
Operating margin 29.64% 19.87% 10.32%
Net margin 30.05% 11.25% 7.45%
Free cash flow margin 18.25% 15.95% 6.77%
Return on equity 41.07% 6.36% 4.78%
Return on assets 23.84% 8.18% 3.62%
Return on invested capital 24.91% 6.10% 6.10%

Growth

Metric AMAT Q Semiconductor Equipment & Materials median
Revenue growth (TTM) 7.77% — 14.60%
EPS growth (last fiscal year) 0.58% (4.56%) —
Revenue growth, 5-year CAGR 10.52% — 8.85%
Net income growth, 5-year CAGR 14.10% — 0.00%

Health

Metric AMAT Q Semiconductor Equipment & Materials median
Debt to equity 0.26 0.53 0.09
Current ratio 2.42 2.01 3.66
Net debt to EBITDA (0.23) 2.31 (0.49)

Dividend

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

Size

Metric AMAT Q Semiconductor Equipment & Materials median
Market cap 382.88b 25.60b 4.63b

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