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 $253.4B against $23.0B — 11.0× the size. Applied Materials, Inc. trades at the lower P/E: 27.7× against 40.6×. Qnity Electronics, Inc. grew revenue faster over the last twelve months: 16.5% against 7.77%. Applied Materials, Inc. has the higher net margin (30.1% vs 10.2%) and the higher return on invested capital (24.9% vs 6.36%). Across the 20 metrics below, Applied Materials, Inc. leads on 13 and Qnity Electronics, Inc. on 7.

Valuation

Metric AMAT Q Semiconductor Equipment & Materials median
P/E 27.69 40.63 33.70
P/S 8.32 4.22 4.22
P/B 10.01 2.94 2.94
Price to free cash flow 44.60 29.62 31.49
EV/EBITDA 26.26 18.37 22.64
EV/Sales 8.23 4.75 4.97
Earnings yield 3.61% 2.46% 2.02%
Free cash flow yield 2.24% 3.38% 2.27%

Profitability

Metric AMAT Q Semiconductor Equipment & Materials median
Gross margin 49.40% 46.92% 46.86%
Operating margin 29.64% 20.00% 12.02%
Net margin 30.05% 10.16% 10.16%
Free cash flow margin 18.25% 14.26% 6.73%
Return on equity 41.07% 6.46% 5.31%
Return on assets 23.84% 4.10% 4.10%
Return on invested capital 24.91% 6.36% 6.36%

Growth

Metric AMAT Q Semiconductor Equipment & Materials median
Revenue growth (TTM) 7.77% 16.51% 15.82%
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 0.51 0.09
Current ratio 2.42 2.09 3.56
Net debt to EBITDA (0.23) 2.31 (0.49)

Dividend

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

Size

Metric AMAT Q Semiconductor Equipment & Materials median
Market cap 253.36b 23.02b 3.04b

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