AMAT vs. CTSH: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AMAT and CTSH, comparing key factors like performance, valuation metrics, dividends, and financial strength.
Company Overview
AMAT’s market capitalization of 140.44 billion USD is substantially larger than CTSH’s 39.66 billion USD, indicating a significant difference in their market valuations.
AMAT’s beta of 1.66 points to significantly higher volatility compared to CTSH (beta: 0.98), suggesting AMAT has greater potential for both gains and losses relative to market movements.
| Symbol | AMAT | CTSH |
|---|---|---|
| Company Name | Applied Materials, Inc. | Cognizant Technology Solutions Corporation |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Information Technology Services |
| CEO | Mr. Gary E. Dickerson | Mr. Ravi Kumar Singisetti |
| Price | 175 USD | 80.46 USD |
| Market Cap | 140.44 billion USD | 39.66 billion USD |
| Beta | 1.66 | 0.98 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | March 17, 1980 | June 19, 1998 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AMAT and CTSH over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
- AMAT: $7273.79 (-27.26%)
- CTSH: $12466.69 (24.67%)
Valuation Metrics Comparison
This section compares the market valuation of AMAT and CTSH. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.
- AMAT’s Forward PEG ratio of 3.13 and CTSH’s Forward PEG ratio of 2.95 are both considered very high. For AMAT, this elevated ratio implies its stock price may incorporate highly optimistic growth assumptions that could be challenging to realize. CTSH’s very high PEG also suggests its valuation is quite rich relative to its expected earnings growth, potentially indicating overvaluation.
| Symbol | AMAT | CTSH |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 21.00 | 16.86 |
| Forward PEG Ratio (TTM) | 3.13 | 2.95 |
| Price-to-Sales Ratio (P/S, TTM) | 5.00 | 1.97 |
| Price-to-Book Ratio (P/B, TTM) | 7.49 | 2.67 |
| EV-to-EBITDA (TTM) | 16.10 | 10.54 |
| EV-to-Sales (TTM) | 5.00 | 1.93 |
Dividend Comparison
CTSH provides a dividend yield of 1.52%, which is significantly higher than AMAT’s 0.95%, highlighting its commitment to more generous shareholder payouts.
| Symbol | AMAT | CTSH |
|---|---|---|
| Dividend Yield (TTM) | 0.95% | 1.52% |
Financial Strength Metrics Comparison
Explore the financial strength details for AMAT and CTSH in the table below.
| Symbol | AMAT | CTSH |
|---|---|---|
| Current Ratio (TTM) | 2.46 | 2.22 |
| Quick Ratio (TTM) | 1.76 | 2.22 |
| Debt-to-Equity Ratio (TTM) | 0.33 | 0.08 |
| Debt-to-Asset Ratio (TTM) | 0.19 | 0.06 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.01 | -0.22 |
| Interest Coverage Ratio (TTM) | 31.92 | 55.98 |