AMAT vs. NOW: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AMAT and NOW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AMAT’s market capitalization stands at 153.32 billion USD, while NOW’s is 216.41 billion USD, indicating their market valuations are broadly comparable.
AMAT’s beta of 1.66 points to significantly higher volatility compared to NOW (beta: 0.96), suggesting AMAT has greater potential for both gains and losses relative to market movements.
| Symbol | AMAT | NOW |
|---|---|---|
| Company Name | Applied Materials, Inc. | ServiceNow, Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Software - Application |
| CEO | Gary E. Dickerson | William R. McDermott |
| Price | 191.05 USD | 1,044.69 USD |
| Market Cap | 153.32 billion USD | 216.41 billion USD |
| Beta | 1.66 | 0.96 |
| Exchange | NASDAQ | NYSE |
| IPO Date | March 17, 1980 | June 29, 2012 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AMAT and NOW 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.
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.
NOW
16.32%
Software - Application Industry
- Max
- 59.01%
- Q3
- 17.85%
- Median
- 4.73%
- Q1
- -10.56%
- Min
- -52.94%
NOW’s Return on Equity of 16.32% is on par with the norm for the Software - Application industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
NOW
9.53%
Software - Application Industry
- Max
- 35.07%
- Q3
- 9.72%
- Median
- 0.76%
- Q1
- -8.68%
- Min
- -34.12%
NOW’s Return on Invested Capital of 9.53% is in line with the norm for the Software - Application industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
NOW
13.41%
Software - Application Industry
- Max
- 48.14%
- Q3
- 16.07%
- Median
- 1.83%
- Q1
- -9.60%
- Min
- -45.64%
NOW’s Net Profit Margin of 13.41% is aligned with the median group of its peers in the Software - Application industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
NOW
12.93%
Software - Application Industry
- Max
- 51.67%
- Q3
- 15.35%
- Median
- 1.79%
- Q1
- -12.42%
- Min
- -45.17%
NOW’s Operating Profit Margin of 12.93% is around the midpoint for the Software - Application industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AMAT | NOW |
|---|---|---|
| Return on Equity (TTM) | 35.84% | 16.32% |
| Return on Assets (TTM) | 20.09% | 7.33% |
| Return on Invested Capital (TTM) | 25.68% | 9.53% |
| Net Profit Margin (TTM) | 24.06% | 13.41% |
| Operating Profit Margin (TTM) | 29.66% | 12.93% |
| Gross Profit Margin (TTM) | 48.14% | 78.92% |
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.
NOW
1.12
Software - Application Industry
- Max
- 5.09
- Q3
- 2.84
- Median
- 1.70
- Q1
- 1.12
- Min
- 0.04
NOW’s Current Ratio of 1.12 aligns with the median group of the Software - Application industry, indicating that its short-term liquidity is in line with its sector peers.
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.
NOW
0.24
Software - Application Industry
- Max
- 1.85
- Q3
- 0.77
- Median
- 0.18
- Q1
- 0.05
- Min
- 0.00
NOW’s Debt-to-Equity Ratio of 0.24 is typical for the Software - Application industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
NOW
64.48
Software - Application Industry
- Max
- 39.23
- Q3
- 8.55
- Median
- 1.48
- Q1
- -14.59
- Min
- -39.97
With an Interest Coverage Ratio of 64.48, NOW demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software - Application industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | AMAT | NOW |
|---|---|---|
| Current Ratio (TTM) | 2.46 | 1.12 |
| Quick Ratio (TTM) | 1.76 | 1.12 |
| Debt-to-Equity Ratio (TTM) | 0.33 | 0.24 |
| Debt-to-Asset Ratio (TTM) | 0.19 | 0.11 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.01 | -0.42 |
| Interest Coverage Ratio (TTM) | 31.92 | 64.48 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AMAT and NOW. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
NOW
0.00%
Software - Application Industry
- Max
- 3.66%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NOW currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
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.
NOW
0.00%
Software - Application Industry
- Max
- 81.09%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NOW has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | AMAT | NOW |
|---|---|---|
| Dividend Yield (TTM) | 0.87% | 0.00% |
| Dividend Payout Ratio (TTM) | 18.53% | 0.00% |
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.
NOW
140.48
Software - Application Industry
- Max
- 194.31
- Q3
- 98.56
- Median
- 51.87
- Q1
- 22.76
- Min
- 1.02
A P/E Ratio of 140.48 places NOW in the upper quartile for the Software - Application industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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.
NOW
7.51
Software - Application Industry
- Max
- 15.44
- Q3
- 6.57
- Median
- 2.78
- Q1
- 0.55
- Min
- 0.00
A Forward PEG Ratio of 7.51 places NOW in the upper quartile for the Software - Application industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
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.
NOW
18.87
Software - Application Industry
- Max
- 23.49
- Q3
- 11.14
- Median
- 5.62
- Q1
- 2.84
- Min
- 0.33
NOW’s P/S Ratio of 18.87 is in the upper echelon for the Software - Application industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
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.
NOW
21.31
Software - Application Industry
- Max
- 21.03
- Q3
- 10.49
- Median
- 6.36
- Q1
- 2.89
- Min
- 0.12
The P/B Ratio is often not a primary valuation metric for the Software - Application industry.
Valuation at a Glance
| Symbol | AMAT | NOW |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 22.93 | 140.48 |
| Forward PEG Ratio (TTM) | 3.41 | 7.51 |
| Price-to-Sales Ratio (P/S, TTM) | 5.46 | 18.87 |
| Price-to-Book Ratio (P/B, TTM) | 8.17 | 21.31 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 25.83 | 58.94 |
| EV-to-EBITDA (TTM) | 17.57 | 92.23 |
| EV-to-Sales (TTM) | 5.46 | 18.78 |