Applied Materials vs ASML Which Is Stronger?

Applied Materials and ASML are two major players in the semiconductor equipment industry. Applied Materials is a leading provider of materials engineering solutions for the semiconductor industry, while ASML is renowned for its advanced lithography technology. Both companies have experienced significant growth in recent years, with Applied Materials' stock outperforming ASML's in terms of overall returns. However, ASML's cutting-edge technology and strategic partnerships have positioned it as a strong competitor in the industry. Investors looking to capitalize on the semiconductor market should closely monitor the performance of both Applied Materials and ASML stocks.

Applied Materials or ASML?

When comparing Applied Materials and ASML, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Applied Materials and ASML.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Applied Materials has a dividend yield of 0.76%, while ASML has a dividend yield of 1.14%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Applied Materials reports a 5-year dividend growth of 11.75% year and a payout ratio of 15.18%. On the other hand, ASML reports a 5-year dividend growth of 29.40% year and a payout ratio of 35.02%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Applied Materials P/E ratio at 20.91 and ASML's P/E ratio at 35.76. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Applied Materials P/B ratio is 8.27 while ASML's P/B ratio is 15.33.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Applied Materials has seen a 5-year revenue growth of 0.85%, while ASML's is 1.72%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Applied Materials's ROE at 42.08% and ASML's ROE at 47.68%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $186.46 for Applied Materials and $661.94 for ASML. Over the past year, Applied Materials's prices ranged from $141.94 to $255.89, with a yearly change of 80.28%. ASML's prices fluctuated between $648.27 and $1110.09, with a yearly change of 71.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.