AMAT vs. TXN, MU, INTC, LRCX, ADI, KLAC, AMD, ENTG, ONTO, and MKSI
Should you be buying Applied Materials stock or one of its competitors? The main competitors of Applied Materials include Texas Instruments (TXN), Micron Technology (MU), Intel (INTC), Lam Research (LRCX), Analog Devices (ADI), KLA (KLAC), Advanced Micro Devices (AMD), Entegris (ENTG), Onto Innovation (ONTO), and MKS Instruments (MKSI). These companies are all part of the "computer and technology" sector.
Texas Instruments (NASDAQ:TXN) and Applied Materials (NASDAQ:AMAT) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, media sentiment, analyst recommendations, community ranking, earnings, risk, institutional ownership, profitability and dividends.
Texas Instruments presently has a consensus price target of $182.48, indicating a potential downside of 6.71%. Applied Materials has a consensus price target of $219.04, indicating a potential downside of 1.21%. Given Texas Instruments' stronger consensus rating and higher probable upside, analysts plainly believe Applied Materials is more favorable than Texas Instruments.
Applied Materials has higher revenue and earnings than Texas Instruments. Applied Materials is trading at a lower price-to-earnings ratio than Texas Instruments, indicating that it is currently the more affordable of the two stocks.
In the previous week, Applied Materials had 15 more articles in the media than Texas Instruments. MarketBeat recorded 26 mentions for Applied Materials and 11 mentions for Texas Instruments. Applied Materials' average media sentiment score of 1.27 beat Texas Instruments' score of 0.85 indicating that Texas Instruments is being referred to more favorably in the media.
Texas Instruments pays an annual dividend of $5.20 per share and has a dividend yield of 2.7%. Applied Materials pays an annual dividend of $1.60 per share and has a dividend yield of 0.7%. Texas Instruments pays out 81.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Applied Materials pays out 18.4% of its earnings in the form of a dividend. Texas Instruments has increased its dividend for 20 consecutive years and Applied Materials has increased its dividend for 7 consecutive years. Texas Instruments is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Texas Instruments has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Applied Materials has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.
Applied Materials received 476 more outperform votes than Texas Instruments when rated by MarketBeat users. Likewise, 72.09% of users gave Applied Materials an outperform vote while only 60.69% of users gave Texas Instruments an outperform vote.
Texas Instruments has a net margin of 35.16% compared to Texas Instruments' net margin of 27.57%. Texas Instruments' return on equity of 41.22% beat Applied Materials' return on equity.
85.0% of Texas Instruments shares are owned by institutional investors. Comparatively, 80.6% of Applied Materials shares are owned by institutional investors. 0.7% of Texas Instruments shares are owned by insiders. Comparatively, 0.3% of Applied Materials shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Applied Materials beats Texas Instruments on 13 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding AMAT and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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