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

Updated on July 7, 2025

Here’s a clear look at AMAT and PSTG, 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 PSTG’s 18.61 billion USD, indicating a significant difference in their market valuations.

AMAT’s beta of 1.66 points to significantly higher volatility compared to PSTG (beta: 1.06), suggesting AMAT has greater potential for both gains and losses relative to market movements.

Symbol	AMAT	PSTG
Company Name	Applied Materials, Inc.	Pure Storage, Inc.
Country	US	US
Sector	Technology	Technology
Industry	Semiconductors	Computer Hardware
CEO	Gary E. Dickerson	Charles H. Giancarlo
Price	191.05 USD	56.93 USD
Market Cap	153.32 billion USD	18.61 billion USD
Beta	1.66	1.06
Exchange	NASDAQ	NYSE
IPO Date	March 17, 1980	October 6, 2015
ADR	No	No

Historical Performance

This chart compares the performance of AMAT and PSTG 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. PSTG: 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.

PSTG

9.44%

Computer Hardware Industry

Max: 123.03%
Q3: 15.78%
Median: -13.44%
Q1: -119.16%
Min: -227.95%

PSTG’s Return on Equity of 9.44% is on par with the norm for the Computer Hardware industry, indicating its profitability relative to shareholder equity is typical for the sector.

AMAT vs. PSTG: A comparison of their ROE against their respective Semiconductors and Computer Hardware 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.

PSTG

2.83%

Computer Hardware Industry

Max: 30.37%
Q3: 20.44%
Median: 7.03%
Q1: -12.47%
Min: -31.70%

PSTG’s Return on Invested Capital of 2.83% is in line with the norm for the Computer Hardware industry, reflecting a standard level of efficiency in generating profits from its capital base.

AMAT vs. PSTG: A comparison of their ROIC against their respective Semiconductors and Computer Hardware 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.

PSTG

4.03%

Computer Hardware Industry

Max: 40.72%
Q3: 10.87%
Median: 4.33%
Q1: -378.64%
Min: -753.20%

PSTG’s Net Profit Margin of 4.03% is aligned with the median group of its peers in the Computer Hardware industry. This indicates its ability to convert revenue into profit is typical for the sector.

AMAT vs. PSTG: A comparison of their Net Profit Margin against their respective Semiconductors and Computer Hardware 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.

PSTG

3.03%

Computer Hardware Industry

Max: 42.27%
Q3: 13.53%
Median: 4.56%
Q1: -295.01%
Min: -592.84%

PSTG’s Operating Profit Margin of 3.03% is around the midpoint for the Computer Hardware industry, indicating that its efficiency in managing core business operations is typical for the sector.

AMAT vs. PSTG: A comparison of their Operating Margin against their respective Semiconductors and Computer Hardware industry benchmarks.

Profitability at a Glance

Symbol	AMAT	PSTG
Return on Equity (TTM)	35.84%	9.44%
Return on Assets (TTM)	20.09%	3.35%
Return on Invested Capital (TTM)	25.68%	2.83%
Net Profit Margin (TTM)	24.06%	4.03%
Operating Profit Margin (TTM)	29.66%	3.03%
Gross Profit Margin (TTM)	48.14%	71.12%

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.

PSTG

1.61

Computer Hardware Industry

Max: 20.73
Q3: 11.54
Median: 2.69
Q1: 1.40
Min: 0.73

PSTG’s Current Ratio of 1.61 aligns with the median group of the Computer Hardware industry, indicating that its short-term liquidity is in line with its sector peers.

AMAT vs. PSTG: A comparison of their Current Ratio against their respective Semiconductors and Computer Hardware 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.

PSTG

0.22

Computer Hardware Industry

Max: 1.36
Q3: 0.67
Median: 0.04
Q1: 0.03
Min: 0.00

PSTG’s Debt-to-Equity Ratio of 0.22 is typical for the Computer Hardware industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AMAT vs. PSTG: A comparison of their D/E Ratio against their respective Semiconductors and Computer Hardware 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.

PSTG

12.60

Computer Hardware Industry

Max: 32.50
Q3: 21.85
Median: 4.98
Q1: -7.71
Min: -34.24

PSTG’s Interest Coverage Ratio of 12.60 is positioned comfortably within the norm for the Computer Hardware industry, indicating a standard and healthy capacity to cover its interest payments.

AMAT vs. PSTG: A comparison of their Interest Coverage against their respective Semiconductors and Computer Hardware industry benchmarks.

Financial Strength at a Glance

Symbol	AMAT	PSTG
Current Ratio (TTM)	2.46	1.61
Quick Ratio (TTM)	1.76	1.58
Debt-to-Equity Ratio (TTM)	0.33	0.22
Debt-to-Asset Ratio (TTM)	0.19	0.07
Net Debt-to-EBITDA Ratio (TTM)	0.01	-1.62
Interest Coverage Ratio (TTM)	31.92	12.60

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

AMAT vs. PSTG: 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.

PSTG

0.00%

Computer Hardware Industry

Max: 9.24%
Q3: 1.58%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

PSTG 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.

AMAT vs. PSTG: A comparison of their Dividend Yield against their respective Semiconductors and Computer Hardware 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.

PSTG

0.00%

Computer Hardware Industry

Max: 193.79%
Q3: 30.72%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

PSTG 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.

AMAT vs. PSTG: A comparison of their Payout Ratio against their respective Semiconductors and Computer Hardware industry benchmarks.

Dividend at a Glance

Symbol	AMAT	PSTG
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.

PSTG

145.51

Computer Hardware Industry

Max: 24.60
Q3: 24.01
Median: 20.31
Q1: 18.24
Min: 13.38

At 145.51, PSTG’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Computer Hardware industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

AMAT vs. PSTG: A comparison of their P/E Ratio against their respective Semiconductors and Computer Hardware 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.

PSTG

10.04

Computer Hardware Industry

Max: 9.77
Q3: 5.18
Median: 1.77
Q1: 1.17
Min: 0.02

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

AMAT vs. PSTG: A comparison of their Forward PEG Ratio against their respective Semiconductors and Computer Hardware 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.

PSTG

5.87

Computer Hardware Industry

Max: 57.61
Q3: 47.40
Median: 3.37
Q1: 1.56
Min: 0.43

PSTG’s P/S Ratio of 5.87 aligns with the market consensus for the Computer Hardware industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AMAT vs. PSTG: A comparison of their P/S Ratio against their respective Semiconductors and Computer Hardware 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.

PSTG

14.94

Computer Hardware Industry

Max: 21.21
Q3: 14.71
Median: 9.28
Q1: 3.74
Min: 0.43

PSTG’s P/B Ratio of 14.94 is in the upper tier for the Computer Hardware 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.

AMAT vs. PSTG: A comparison of their P/B Ratio against their respective Semiconductors and Computer Hardware industry benchmarks.

Valuation at a Glance

Symbol	AMAT	PSTG
Price-to-Earnings Ratio (P/E, TTM)	22.93	145.51
Forward PEG Ratio (TTM)	3.41	10.04
Price-to-Sales Ratio (P/S, TTM)	5.46	5.87
Price-to-Book Ratio (P/B, TTM)	8.17	14.94
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	25.83	32.89
EV-to-EBITDA (TTM)	17.57	62.78
EV-to-Sales (TTM)	5.46	5.73