AMAT vs. TXN, INTC, MU, ADI, AMD, NXPI, MCHP, STM, AVGO, and VZ
Should you be buying Applied Materials stock or one of its competitors? The main competitors of Applied Materials include Texas Instruments (TXN), Intel (INTC), Micron Technology (MU), Analog Devices (ADI), Advanced Micro Devices (AMD), NXP Semiconductors (NXPI), Microchip Technology (MCHP), STMicroelectronics (STM), Broadcom (AVGO), and Verizon Communications (VZ). 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 stock? We will compare the two companies based on the strength of their earnings, media sentiment, profitability, analyst recommendations, valuation, risk, community ranking, dividends and institutional ownership.
Applied Materials received 466 more outperform votes than Texas Instruments when rated by MarketBeat users. Likewise, 72.06% of users gave Applied Materials an outperform vote while only 60.82% of users gave Texas Instruments an outperform vote.
Texas Instruments pays an annual dividend of $5.20 per share and has a dividend yield of 2.9%. Applied Materials pays an annual dividend of $1.28 per share and has a dividend yield of 0.6%. 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 15.1% 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 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Applied Materials has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.
85.0% of Texas Instruments shares are held by institutional investors. Comparatively, 80.6% of Applied Materials shares are held by institutional investors. 0.7% of Texas Instruments shares are held by company insiders. Comparatively, 0.3% of Applied Materials shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Texas Instruments has a net margin of 35.16% compared to Texas Instruments' net margin of 27.03%. Texas Instruments' return on equity of 43.56% beat Applied Materials' return on equity.
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.
Texas Instruments presently has a consensus target price of $180.74, indicating a potential upside of 1.84%. Applied Materials has a consensus target price of $201.50, indicating a potential downside of 0.92%. Given Applied Materials' higher possible upside, equities analysts plainly believe Texas Instruments is more favorable than Applied Materials.
In the previous week, Texas Instruments had 78 more articles in the media than Applied Materials. MarketBeat recorded 92 mentions for Texas Instruments and 14 mentions for Applied Materials. Texas Instruments' average media sentiment score of 0.94 beat Applied Materials' score of 0.50 indicating that Applied Materials is being referred to more favorably in the news media.
Summary
Applied Materials beats Texas Instruments on 12 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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