AMAT vs. VRSN: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AMAT and VRSN, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.
Company Overview
AMAT dominates in value with a market cap of 131.76 billion USD, eclipsing VRSN’s 26.39 billion USD by roughly 4.99×.
AMAT’s beta of 1.71 points to much larger expected swings compared to VRSN’s calmer 0.80, suggesting both higher upside and downside potential.
| Symbol | AMAT | VRSN |
|---|---|---|
| Company Name | Applied Materials, Inc. | VeriSign, Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Software - Infrastructure |
| CEO | Mr. Gary E. Dickerson | Mr. D. James Bidzos |
| Price | 162.18 USD | 281.08 USD |
| Market Cap | 131.76 billion USD | 26.39 billion USD |
| Beta | 1.71 | 0.80 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | March 17, 1980 | January 30, 1998 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AMAT and VRSN over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Hover over the lines to see the investment’s value and total return (%) at specific dates.
Data is adjusted for dividends and splits.
Valuation Metrics Comparison
The section examines key financial ratios to assess the valuation of AMAT and VRSN based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- VRSN shows a negative forward PEG of -0.34, signaling expected earnings contraction, while AMAT at 2.87 maintains analysts’ projections for stable or improved profits.
- VRSN carries a sub-zero price-to-book ratio of -18.93, indicating negative equity. In contrast, AMAT (P/B 6.94) has positive book value.
| Symbol | AMAT | VRSN |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 19.46 | 33.62 |
| Forward PEG Ratio (TTM) | 2.87 | -0.34 |
| Price-to-Sales Ratio (P/S, TTM) | 4.69 | 16.75 |
| Price-to-Book Ratio (P/B, TTM) | 6.94 | -18.93 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 22.20 | 29.12 |
| EV-to-EBITDA (TTM) | 15.04 | 24.24 |
| EV-to-Sales (TTM) | 4.69 | 17.53 |
| EV-to-Free Cash Flow (TTM) | 22.22 | 30.46 |
Dividend Comparison
AMAT’s dividend yield of 1.27% is about 364% higher than VRSN’s 0.27%, underscoring its stronger focus on returning cash to shareholders.
| Symbol | AMAT | VRSN |
|---|---|---|
| Dividend Yield (TTM) | 1.27% | 0.27% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of AMAT and VRSN, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- VRSN’s current ratio of 0.56 indicates its assets may not cover near-term debts, whereas AMAT at 2.46 maintains healthy liquidity.
- VRSN posts a quick ratio of 0.56, indicating limited coverage of short-term debts from its most liquid assets—while AMAT at 1.76 enjoys stronger liquidity resilience.
- VRSN has negative equity (debt-to-equity ratio -1.28), suggesting asset shortfalls, whereas AMAT at 0.33 preserves healthier equity coverage.
- VRSN carries a debt-to-assets ratio of 1.24, suggesting substantial asset funding via debt, while AMAT at 0.19 opts for a more conservative financing structure.
| Symbol | AMAT | VRSN |
|---|---|---|
| Current Ratio (TTM) | 2.46 | 0.56 |
| Quick Ratio (TTM) | 1.76 | 0.56 |
| Debt-to-Equity Ratio (TTM) | 0.33 | -1.28 |
| Debt-to-Assets Ratio (TTM) | 0.19 | 1.24 |
| Interest Coverage Ratio (TTM) | 31.92 | 13.94 |