AMAT vs. CTSH: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AMAT and CTSH, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | AMAT | CTSH |
|---|---|---|
| Company Name | Applied Materials, Inc. | Cognizant Technology Solutions Corporation |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Semiconductors & Semiconductor Equipment | IT Services |
| Market Capitalization | 182.93 billion USD | 35.54 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | March 17, 1980 | June 19, 1998 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of AMAT and CTSH by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | AMAT | CTSH |
|---|---|---|
| 5-Day Price Return | -3.86% | -0.36% |
| 13-Week Price Return | 39.72% | 3.74% |
| 26-Week Price Return | 30.62% | -10.64% |
| 52-Week Price Return | 23.64% | -11.78% |
| Month-to-Date Return | -3.04% | -0.36% |
| Year-to-Date Return | 38.97% | -5.57% |
| 10-Day Avg. Volume | 8.50M | 4.85M |
| 3-Month Avg. Volume | 7.96M | 4.31M |
| 3-Month Volatility | 49.05% | 24.33% |
| Beta | 1.69 | 0.98 |
Profitability
Return on Equity (TTM)
AMAT
35.91%
Semiconductors & Semiconductor Equipment Industry
- Max
- 49.05%
- Q3
- 22.19%
- Median
- 7.96%
- Q1
- 0.99%
- Min
- -15.65%
In the upper quartile for the Semiconductors & Semiconductor Equipment industry, AMAT’s Return on Equity of 35.91% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
CTSH
14.31%
IT Services Industry
- Max
- 37.08%
- Q3
- 19.28%
- Median
- 14.70%
- Q1
- 6.70%
- Min
- -8.16%
CTSH’s Return on Equity of 14.31% is on par with the norm for the IT Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
AMAT
24.67%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.41%
- Q3
- 24.47%
- Median
- 11.88%
- Q1
- 0.60%
- Min
- -25.46%
A Net Profit Margin of 24.67% places AMAT in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying strong profitability and more effective cost management than most of its peers.
CTSH
10.20%
IT Services Industry
- Max
- 17.01%
- Q3
- 11.02%
- Median
- 6.91%
- Q1
- 3.07%
- Min
- -5.13%
CTSH’s Net Profit Margin of 10.20% is aligned with the median group of its peers in the IT Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
AMAT
29.22%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.09%
- Q3
- 27.76%
- Median
- 12.14%
- Q1
- 3.29%
- Min
- -32.60%
An Operating Profit Margin of 29.22% places AMAT in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
CTSH
15.76%
IT Services Industry
- Max
- 23.01%
- Q3
- 15.32%
- Median
- 9.57%
- Q1
- 4.91%
- Min
- -9.58%
An Operating Profit Margin of 15.76% places CTSH in the upper quartile for the IT Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AMAT | CTSH |
|---|---|---|
| Return on Equity (TTM) | 35.91% | 14.31% |
| Return on Assets (TTM) | 20.15% | 10.61% |
| Net Profit Margin (TTM) | 24.67% | 10.20% |
| Operating Profit Margin (TTM) | 29.22% | 15.76% |
| Gross Profit Margin (TTM) | 48.67% | 34.06% |
Financial Strength
Current Ratio (MRQ)
AMAT
2.50
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.57
- Q3
- 4.28
- Median
- 2.86
- Q1
- 2.22
- Min
- 1.02
AMAT’s Current Ratio of 2.50 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.
CTSH
2.36
IT Services Industry
- Max
- 3.02
- Q3
- 1.91
- Median
- 1.36
- Q1
- 1.02
- Min
- 0.49
CTSH’s Current Ratio of 2.36 is in the upper quartile for the IT Services industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio (MRQ)
AMAT
0.32
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.18
- Q3
- 0.48
- Median
- 0.24
- Q1
- 0.01
- Min
- 0.00
AMAT’s Debt-to-Equity Ratio of 0.32 is typical for the Semiconductors & Semiconductor Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
CTSH
0.04
IT Services Industry
- Max
- 2.55
- Q3
- 1.30
- Median
- 0.55
- Q1
- 0.14
- Min
- 0.00
Falling into the lower quartile for the IT Services industry, CTSH’s Debt-to-Equity Ratio of 0.04 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
AMAT
42.75
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.21
- Median
- 22.37
- Q1
- 6.43
- Min
- -7.80
AMAT’s Interest Coverage Ratio of 42.75 is positioned comfortably within the norm for the Semiconductors & Semiconductor Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
CTSH
100.81
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 1.68
- Min
- -28.15
CTSH’s Interest Coverage Ratio of 100.81 is in the upper quartile for the IT Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AMAT | CTSH |
|---|---|---|
| Current Ratio (MRQ) | 2.50 | 2.36 |
| Quick Ratio (MRQ) | 1.69 | 2.36 |
| Debt-to-Equity Ratio (MRQ) | 0.32 | 0.04 |
| Interest Coverage Ratio (TTM) | 42.75 | 100.81 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
AMAT
0.75%
Semiconductors & Semiconductor Equipment Industry
- Max
- 3.58%
- Q3
- 1.59%
- Median
- 0.61%
- Q1
- 0.00%
- Min
- 0.00%
AMAT’s Dividend Yield of 0.75% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.
CTSH
1.73%
IT Services Industry
- Max
- 4.66%
- Q3
- 2.02%
- Median
- 0.66%
- Q1
- 0.00%
- Min
- 0.00%
CTSH’s Dividend Yield of 1.73% is consistent with its peers in the IT Services industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
AMAT
19.73%
Semiconductors & Semiconductor Equipment Industry
- Max
- 211.90%
- Q3
- 88.01%
- Median
- 25.84%
- Q1
- 0.00%
- Min
- 0.00%
AMAT’s Dividend Payout Ratio of 19.73% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
CTSH
28.62%
IT Services Industry
- Max
- 93.78%
- Q3
- 63.22%
- Median
- 24.64%
- Q1
- 0.00%
- Min
- 0.00%
CTSH’s Dividend Payout Ratio of 28.62% is within the typical range for the IT Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AMAT | CTSH |
|---|---|---|
| Dividend Yield (TTM) | 0.75% | 1.73% |
| Dividend Payout Ratio (TTM) | 19.73% | 28.62% |
Valuation
Price-to-Earnings Ratio (TTM)
AMAT
25.73
Semiconductors & Semiconductor Equipment Industry
- Max
- 95.58
- Q3
- 58.67
- Median
- 34.77
- Q1
- 25.45
- Min
- 12.63
AMAT’s P/E Ratio of 25.73 is within the middle range for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
CTSH
16.50
IT Services Industry
- Max
- 45.03
- Q3
- 30.25
- Median
- 21.01
- Q1
- 16.50
- Min
- 0.00
CTSH’s P/E Ratio of 16.50 is within the middle range for the IT Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
AMAT
6.35
Semiconductors & Semiconductor Equipment Industry
- Max
- 18.34
- Q3
- 10.38
- Median
- 5.38
- Q1
- 2.49
- Min
- 0.32
AMAT’s P/S Ratio of 6.35 aligns with the market consensus for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
CTSH
1.68
IT Services Industry
- Max
- 5.24
- Q3
- 4.01
- Median
- 2.18
- Q1
- 1.08
- Min
- 0.00
CTSH’s P/S Ratio of 1.68 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
AMAT
7.83
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.22
- Q3
- 8.33
- Median
- 4.39
- Q1
- 1.79
- Min
- 0.30
AMAT’s P/B Ratio of 7.83 is within the conventional range for the Semiconductors & Semiconductor Equipment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
CTSH
2.20
IT Services Industry
- Max
- 9.42
- Q3
- 5.79
- Median
- 3.70
- Q1
- 2.30
- Min
- 0.79
CTSH’s P/B Ratio of 2.20 is in the lower quartile for the IT Services industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | AMAT | CTSH |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 25.73 | 16.50 |
| Price-to-Sales Ratio (TTM) | 6.35 | 1.68 |
| Price-to-Book Ratio (MRQ) | 7.83 | 2.20 |
| Price-to-Free Cash Flow Ratio (TTM) | 30.92 | 13.24 |