InvestBattle | Applied Materials vs Texas Instruments

May 3, 2024by

As we noted in last week’s issue, over the past three months, one of the leaders of growth in the S&P 500 index has been the Semiconductors & Semiconductor Equipment industry +22.0%.

Some of the largest (by market capitalization) companies in this industry are: Applied Materials ($168.9B), the world’s largest manufacturer of wafer fabrication equipment (WFE), and Texas Instruments ($161.5B), the world’s largest manufacturer of analog chips for processing physical signals.

According to the latest quarterly reporting data, we analyzed each company’s profitability, strength, and efficiency criteria using the methodology of Stanford University professor Joseph Piotroski.

As you can see, in terms of fundamentals, Applied Materials is showing stronger results and outperforms Texas Instruments in terms of profitability, sustainability, and efficiency.

Over the past 3 months, Applied Materials stock has risen by +21.8%, while Texas Instruments has increased by +8.1% (the S&P 500 index has risen by +4.2%). Applied Materials has outperformed its closest competitor and demonstrated better results compared to the index.

So, the winner in today’s battle is Applied Materials (AMAT). The company’s stock is showing better dynamics, and the business looks healthier in terms of changes in return on assets, financial leverage, liquidity, financing, and operating margin.

* This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.
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