Western Digital (WDC) Competitors

Applied Materials (NASDAQ:AMAT) and Western Digital (NASDAQ:WDC) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, media sentiment, risk, earnings, valuation, institutional ownership and dividends.

Which has more risk and volatility, AMAT or WDC?

Applied Materials has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500. Comparatively, Western Digital has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500.

Is AMAT or WDC a better dividend stock?

Applied Materials pays an annual dividend of $1.84 per share and has a dividend yield of 0.8%. Western Digital pays an annual dividend of $0.40 per share and has a dividend yield of 0.3%. Applied Materials pays out 21.9% of its earnings in the form of a dividend. Western Digital pays out 7.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Applied Materials has increased its dividend for 8 consecutive years. Applied Materials is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has stronger earnings & valuation, AMAT or WDC?

Applied Materials has higher revenue and earnings than Western Digital. Western Digital is trading at a lower price-to-earnings ratio than Applied Materials, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Materials	$28.61B	6.32	$7.18B	$8.39	27.05
Western Digital	$9.52B	4.66	$1.89B	$5.15	25.11

Does the media refer more to AMAT or WDC?

In the previous week, Applied Materials had 43 more articles in the media than Western Digital. MarketBeat recorded 70 mentions for Applied Materials and 27 mentions for Western Digital. Applied Materials' average media sentiment score of 1.21 beat Western Digital's score of 0.97 indicating that Applied Materials is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Applied Materials	51 Very Positive mention(s)	1 Positive mention(s)	11 Neutral mention(s)	3 Negative mention(s)	1 Very Negative mention(s)	Positive
Western Digital	17 Very Positive mention(s)	3 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is AMAT or WDC more profitable?

Applied Materials has a net margin of 23.88% compared to Western Digital's net margin of 14.13%. Applied Materials' return on equity of 40.96% beat Western Digital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Applied Materials	23.88%	40.96%	22.99%
Western Digital	14.13%	24.93%	10.59%

Do institutionals and insiders hold more shares of AMAT or WDC?

80.6% of Applied Materials shares are held by institutional investors. Comparatively, 92.5% of Western Digital shares are held by institutional investors. 0.2% of Applied Materials shares are held by company insiders. Comparatively, 0.2% of Western Digital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Do analysts rate AMAT or WDC?

Applied Materials currently has a consensus price target of $206.08, indicating a potential downside of 9.21%. Western Digital has a consensus price target of $101.21, indicating a potential downside of 21.73%. Given Applied Materials' higher possible upside, equities analysts plainly believe Applied Materials is more favorable than Western Digital.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Materials	1 Sell rating(s)	12 Hold rating(s)	18 Buy rating(s)	0 Strong Buy rating(s)	2.55
Western Digital	0 Sell rating(s)	5 Hold rating(s)	17 Buy rating(s)	1 Strong Buy rating(s)	2.83

Summary

Applied Materials beats Western Digital on 16 of the 20 factors compared between the two stocks.