AMAT vs. MSI: A Head-to-Head Stock Comparison

Updated on July 7, 2025

Here’s a clear look at AMAT and MSI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

AMAT’s market capitalization of 153.32 billion USD is substantially larger than MSI’s 70.91 billion USD, indicating a significant difference in their market valuations.

AMAT’s beta of 1.66 points to significantly higher volatility compared to MSI (beta: 0.97), suggesting AMAT has greater potential for both gains and losses relative to market movements.

Symbol	AMAT	MSI
Company Name	Applied Materials, Inc.	Motorola Solutions, Inc.
Country	US	US
Sector	Technology	Technology
Industry	Semiconductors	Communication Equipment
CEO	Gary E. Dickerson	Gregory Q. Brown
Price	191.05 USD	424.84 USD
Market Cap	153.32 billion USD	70.91 billion USD
Beta	1.66	0.97
Exchange	NASDAQ	NYSE
IPO Date	March 17, 1980	March 17, 1980
ADR	No	No

Historical Performance

This chart compares the performance of AMAT and MSI 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.

AMAT vs. MSI: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AMAT

35.84%

Semiconductors Industry

Max: 41.84%
Q3: 15.81%
Median: 6.31%
Q1: -5.54%
Min: -30.12%

In the upper quartile for the Semiconductors industry, AMAT’s Return on Equity of 35.84% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

MSI

149.56%

Communication Equipment Industry

Max: 30.07%
Q3: 8.07%
Median: 1.84%
Q1: -11.93%
Min: -31.65%

MSI’s Return on Equity of 149.56% is exceptionally high, placing it well beyond the typical range for the Communication Equipment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

AMAT vs. MSI: A comparison of their ROE against their respective Semiconductors and Communication Equipment industry benchmarks.

Return on Invested Capital

AMAT

25.68%

Semiconductors Industry

Max: 30.91%
Q3: 11.34%
Median: 4.08%
Q1: -2.17%
Min: -19.59%

In the upper quartile for the Semiconductors industry, AMAT’s Return on Invested Capital of 25.68% signifies a highly effective use of its capital to generate profits when compared to its peers.

MSI

22.82%

Communication Equipment Industry

Max: 11.59%
Q3: 6.61%
Median: 2.97%
Q1: -2.58%
Min: -13.18%

MSI’s Return on Invested Capital of 22.82% is exceptionally high, placing it well beyond the typical range for the Communication Equipment industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.

AMAT vs. MSI: A comparison of their ROIC against their respective Semiconductors and Communication Equipment industry benchmarks.

Net Profit Margin

AMAT

24.06%

Semiconductors Industry

Max: 51.69%
Q3: 19.67%
Median: 8.56%
Q1: -5.44%
Min: -38.60%

A Net Profit Margin of 24.06% places AMAT in the upper quartile for the Semiconductors industry, signifying strong profitability and more effective cost management than most of its peers.

MSI

18.67%

Communication Equipment Industry

Max: 23.65%
Q3: 9.21%
Median: 2.46%
Q1: -8.56%
Min: -29.87%

A Net Profit Margin of 18.67% places MSI in the upper quartile for the Communication Equipment industry, signifying strong profitability and more effective cost management than most of its peers.

AMAT vs. MSI: A comparison of their Net Profit Margin against their respective Semiconductors and Communication Equipment industry benchmarks.

Operating Profit Margin

AMAT

29.66%

Semiconductors Industry

Max: 58.03%
Q3: 22.12%
Median: 8.40%
Q1: -3.73%
Min: -36.14%

An Operating Profit Margin of 29.66% places AMAT in the upper quartile for the Semiconductors industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

MSI

25.20%

Communication Equipment Industry

Max: 30.72%
Q3: 11.64%
Median: 5.79%
Q1: -2.28%
Min: -18.20%

An Operating Profit Margin of 25.20% places MSI in the upper quartile for the Communication Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AMAT vs. MSI: A comparison of their Operating Margin against their respective Semiconductors and Communication Equipment industry benchmarks.

Profitability at a Glance

Symbol	AMAT	MSI
Return on Equity (TTM)	35.84%	149.56%
Return on Assets (TTM)	20.09%	14.18%
Return on Invested Capital (TTM)	25.68%	22.82%
Net Profit Margin (TTM)	24.06%	18.67%
Operating Profit Margin (TTM)	29.66%	25.20%
Gross Profit Margin (TTM)	48.14%	50.97%

Financial Strength

Current Ratio

AMAT

2.46

Semiconductors Industry

Max: 9.10
Q3: 5.23
Median: 3.09
Q1: 2.49
Min: 1.02

AMAT’s Current Ratio of 2.46 falls into the lower quartile for the Semiconductors industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

MSI

1.20

Communication Equipment Industry

Max: 3.40
Q3: 2.59
Median: 1.62
Q1: 1.32
Min: 0.86

MSI’s Current Ratio of 1.20 falls into the lower quartile for the Communication Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

AMAT vs. MSI: A comparison of their Current Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

Debt-to-Equity Ratio

AMAT

0.33

Semiconductors Industry

Max: 0.97
Q3: 0.46
Median: 0.21
Q1: 0.05
Min: 0.00

AMAT’s Debt-to-Equity Ratio of 0.33 is typical for the Semiconductors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

MSI

3.98

Communication Equipment Industry

Max: 1.82
Q3: 1.00
Median: 0.53
Q1: 0.20
Min: 0.02

With a Debt-to-Equity Ratio of 3.98, MSI operates with exceptionally high leverage compared to the Communication Equipment industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

AMAT vs. MSI: A comparison of their D/E Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

Interest Coverage Ratio

AMAT

31.92

Semiconductors Industry

Max: 36.25
Q3: 29.12
Median: 7.01
Q1: -1.22
Min: -18.18

AMAT’s Interest Coverage Ratio of 31.92 is in the upper quartile for the Semiconductors industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

MSI

11.80

Communication Equipment Industry

Max: 16.12
Q3: 9.22
Median: 2.52
Q1: -0.75
Min: -12.07

MSI’s Interest Coverage Ratio of 11.80 is in the upper quartile for the Communication Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

AMAT vs. MSI: A comparison of their Interest Coverage against their respective Semiconductors and Communication Equipment industry benchmarks.

Financial Strength at a Glance

Symbol	AMAT	MSI
Current Ratio (TTM)	2.46	1.20
Quick Ratio (TTM)	1.76	1.03
Debt-to-Equity Ratio (TTM)	0.33	3.98
Debt-to-Asset Ratio (TTM)	0.19	0.45
Net Debt-to-EBITDA Ratio (TTM)	0.01	1.57
Interest Coverage Ratio (TTM)	31.92	11.80

Growth

The following charts compare key year-over-year (YoY) growth metrics for AMAT and MSI. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AMAT vs. MSI: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AMAT vs. MSI: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AMAT vs. MSI: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AMAT

0.87%

Semiconductors Industry

Max: 6.48%
Q3: 0.93%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

AMAT’s Dividend Yield of 0.87% is consistent with its peers in the Semiconductors industry, providing a dividend return that is standard for its sector.

MSI

1.00%

Communication Equipment Industry

Max: 4.72%
Q3: 0.38%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

With a Dividend Yield of 1.00%, MSI offers a more attractive income stream than most of its peers in the Communication Equipment industry, signaling a strong commitment to shareholder returns.

AMAT vs. MSI: A comparison of their Dividend Yield against their respective Semiconductors and Communication Equipment industry benchmarks.

Dividend Payout Ratio

AMAT

18.53%

Semiconductors Industry

Max: 204.29%
Q3: 31.85%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

AMAT’s Dividend Payout Ratio of 18.53% is within the typical range for the Semiconductors industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

MSI

32.89%

Communication Equipment Industry

Max: 91.96%
Q3: 26.44%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MSI’s Dividend Payout Ratio of 32.89% is in the upper quartile for the Communication Equipment industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

AMAT vs. MSI: A comparison of their Payout Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

Dividend at a Glance

Symbol	AMAT	MSI
Dividend Yield (TTM)	0.87%	1.00%
Dividend Payout Ratio (TTM)	18.53%	32.89%

Valuation

Price-to-Earnings Ratio

AMAT

22.93

Semiconductors Industry

Max: 86.15
Q3: 47.38
Median: 27.87
Q1: 18.89
Min: 4.73

AMAT’s P/E Ratio of 22.93 is within the middle range for the Semiconductors industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

MSI

34.66

Communication Equipment Industry

Max: 44.37
Q3: 41.98
Median: 30.61
Q1: 23.44
Min: 2.14

MSI’s P/E Ratio of 34.66 is within the middle range for the Communication 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.

AMAT vs. MSI: A comparison of their P/E Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

Forward P/E to Growth Ratio

AMAT

3.41

Semiconductors Industry

Max: 4.73
Q3: 2.80
Median: 1.11
Q1: 0.68
Min: 0.01

The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.

MSI

4.11

Communication Equipment Industry

Max: 15.97
Q3: 6.99
Median: 2.78
Q1: 0.66
Min: 0.05

The Forward PEG Ratio is often not a primary valuation metric in the Communication Equipment industry.

AMAT vs. MSI: A comparison of their Forward PEG Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

Price-to-Sales Ratio

AMAT

5.46

Semiconductors Industry

Max: 21.96
Q3: 10.21
Median: 4.45
Q1: 2.32
Min: 0.48

AMAT’s P/S Ratio of 5.46 aligns with the market consensus for the Semiconductors industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

MSI

6.47

Communication Equipment Industry

Max: 6.38
Q3: 3.88
Median: 2.17
Q1: 1.15
Min: 0.37

With a P/S Ratio of 6.47, MSI trades at a valuation that eclipses even the highest in the Communication Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

AMAT vs. MSI: A comparison of their P/S Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

Price-to-Book Ratio

AMAT

8.17

Semiconductors Industry

Max: 13.12
Q3: 6.49
Median: 3.31
Q1: 1.74
Min: 0.23

AMAT’s P/B Ratio of 8.17 is in the upper tier for the Semiconductors industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

MSI

43.21

Communication Equipment Industry

Max: 14.42
Q3: 7.01
Median: 3.09
Q1: 1.38
Min: 0.41

At 43.21, MSI’s P/B Ratio is at an extreme premium to the Communication Equipment industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

AMAT vs. MSI: A comparison of their P/B Ratio against their respective Semiconductors and Communication Equipment industry benchmarks.

Valuation at a Glance

Symbol	AMAT	MSI
Price-to-Earnings Ratio (P/E, TTM)	22.93	34.66
Forward PEG Ratio (TTM)	3.41	4.11
Price-to-Sales Ratio (P/S, TTM)	5.46	6.47
Price-to-Book Ratio (P/B, TTM)	8.17	43.21
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	25.83	31.23
EV-to-EBITDA (TTM)	17.57	24.03
EV-to-Sales (TTM)	5.46	6.92