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 $341.3B against $25.0B — 13.6× the size. Applied Materials, Inc. trades at the lower P/E: 35.1× against 41.2×. 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 35.07 41.20 45.03
P/S 10.54 4.64 4.64
P/B 12.68 3.20 3.22
Price to free cash flow 56.50 29.09 48.18
EV/EBITDA 33.34 19.18 33.11
EV/Sales 10.45 5.23 5.52
Earnings yield 2.85% 2.43% 1.41%
Free cash flow yield 1.77% 3.44% 1.67%

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%) (4.56%)
Revenue growth, 5-year CAGR 10.52% — 10.11%
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 0.00% — 0.42%
Payout ratio 0.00 — 0.19

Size

Metric AMAT Q Semiconductor Equipment & Materials median
Market cap 341.25b 25.02b 3.80b

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