Seek Returns logo

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

Updated

Here’s a clear look at AMAT and WDAY, comparing key factors like performance, valuation metrics, dividends, and financial strength.

Company Overview

AMAT’s market capitalization of 133.81 billion USD is substantially larger than WDAY’s 67.48 billion USD, indicating a significant difference in their market valuations.

With betas of 1.66 for AMAT and 1.24 for WDAY, both stocks show similar sensitivity to overall market movements.

SymbolAMATWDAY
Company NameApplied Materials, Inc.Workday, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySemiconductorsSoftware - Application
CEOMr. Gary E. DickersonMr. Carl M. Eschenbach
Price166.74 USD252.72 USD
Market Cap133.81 billion USD67.48 billion USD
Beta1.661.24
ExchangeNASDAQNASDAQ
IPO DateMarch 17, 1980October 12, 2012
ADRNoNo

Performance Comparison

This chart compares the performance of AMAT and WDAY over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of AMAT and WDAY. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

  • WDAY’s Price-to-Earnings (P/E) ratio of 138.30 is very high. This signifies that its stock is trading at a premium, likely reflecting market optimism about its future growth, though it also implies a higher risk if these growth expectations are not met.
  • AMAT’s Forward PEG ratio of 2.98 and WDAY’s Forward PEG ratio of 11.67 are both considered very high. For AMAT, this elevated ratio implies its stock price may incorporate highly optimistic growth assumptions that could be challenging to realize. WDAY’s very high PEG also suggests its valuation is quite rich relative to its expected earnings growth, potentially indicating overvaluation.
SymbolAMATWDAY
Price-to-Earnings Ratio (P/E, TTM)20.01138.30
Forward PEG Ratio (TTM)2.9811.67
Price-to-Sales Ratio (P/S, TTM)4.767.76
Price-to-Book Ratio (P/B, TTM)7.137.55
EV-to-EBITDA (TTM)15.3495.23
EV-to-Sales (TTM)4.778.04

Dividend Comparison

AMAT provides a 1.00% dividend yield, potentially offering a blend of income and growth, whereas WDAY currently does not pay a dividend, possibly retaining profits to fund operations or growth initiatives.

SymbolAMATWDAY
Dividend Yield (TTM)1.00%0.00%

Financial Strength Metrics Comparison

Explore the financial strength details for AMAT and WDAY in the table below.

SymbolAMATWDAY
Current Ratio (TTM)2.462.01
Quick Ratio (TTM)1.762.01
Debt-to-Equity Ratio (TTM)0.330.38
Debt-to-Asset Ratio (TTM)0.190.20
Net Debt-to-EBITDA Ratio (TTM)0.013.30
Interest Coverage Ratio (TTM)31.923.42