Comprehensive Stock Comparison
Compare Axcelis Technologies, Inc. (ACLS) vs Applied Materials, Inc. (AMAT) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | AMAT | 4.4% revenue growth vs ACLS's -17.6% |
| Value | ACLS | Lower P/E (22.6x vs 33.9x), PEG 1.07 vs 1.97 |
| Quality / Margins | AMAT | 24.7% net margin vs ACLS's 14.3% |
| Stability / Safety | ACLS | Beta 1.62 vs AMAT's 1.66, lower leverage |
| Dividends | AMAT | 0.5% yield; 8-year raise streak; ACLS pays no meaningful dividend |
| Momentum (1Y) | AMAT | +136.7% vs ACLS's +50.8% |
| Efficiency (ROA) | AMAT | 19.3% ROA vs ACLS's 8.8%, ROIC 33.3% vs 9.6% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Axcelis Technologies designs and manufactures ion implantation equipment used in semiconductor chip fabrication. It generates revenue primarily from selling its implanters — high energy, high current, and medium current models — with aftermarket services like spare parts and maintenance contributing a significant portion. The company's moat lies in its specialized expertise in ion implantation technology and its established relationships with major semiconductor manufacturers.
Applied Materials is the world's leading supplier of semiconductor manufacturing equipment and services. It generates about 70% of revenue from selling semiconductor fabrication systems — with the remaining 30% from services and display equipment — through its three main segments: Semiconductor Systems, Applied Global Services, and Display. Its competitive moat stems from its comprehensive portfolio across the entire chipmaking process and deep customer relationships with major foundries like TSMC, Intel, and Samsung.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
AMAT leads in 4 of 6 categories (Financial Metrics, Profitability & Efficiency). ACLS leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
AMAT is the larger business by revenue, generating $28.4B annually — 33.8x ACLS's $839M. AMAT is the more profitable business, keeping 24.7% of every revenue dollar as net income compared to ACLS's 14.3%.
| Metric | ACLSAxcelis Technolog… | AMATApplied Materials… |
|---|---|---|
| RevenueTrailing 12 months | $839M | $28.4B |
| EBITDAEarnings before interest/tax | $137M | $8.4B |
| Net IncomeAfter-tax profit | $120M | $7.0B |
| Free Cash FlowCash after capex | $107M | $5.7B |
| Gross MarginGross profit ÷ Revenue | +44.9% | +48.7% |
| Operating MarginEBIT ÷ Revenue | +14.2% | +29.2% |
| Net MarginNet income ÷ Revenue | +14.3% | +24.7% |
| FCF MarginFCF ÷ Revenue | +12.8% | +20.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | -5.6% | -3.5% |
| EPS Growth (YoY)Latest quarter vs prior year | -28.6% | +13.9% |
Valuation Metrics
At 21.7x trailing earnings, ACLS trades at a 49% valuation discount to AMAT's 43.0x P/E. Adjusting for growth (PEG ratio), ACLS offers better value at 1.03x vs AMAT's 2.50x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | ACLSAxcelis Technolog… | AMATApplied Materials… |
|---|---|---|
| Market CapShares × price | $2.7B | $295.2B |
| Enterprise ValueMkt cap + debt − cash | $2.6B | $294.5B |
| Trailing P/EPrice ÷ TTM EPS | 21.74x | 42.99x |
| Forward P/EPrice ÷ next-FY EPS est. | 22.64x | 33.87x |
| PEG RatioP/E ÷ EPS growth rate | 1.03x | 2.50x |
| EV / EBITDAEnterprise value multiple | 18.79x | 35.07x |
| Price / SalesMarket cap ÷ Revenue | 3.19x | 10.41x |
| Price / BookPrice ÷ Book value/share | 2.53x | 14.74x |
| Price / FCFMarket cap ÷ FCF | 25.01x | 51.81x |
Profitability & Efficiency
AMAT delivers a 34.3% return on equity — every $100 of shareholder capital generates $34 in annual profit, vs $12 for ACLS. ACLS carries lower financial leverage with a 0.04x debt-to-equity ratio, signaling a more conservative balance sheet compared to AMAT's 0.32x. On the Piotroski fundamental quality scale (0–9), AMAT scores 7/9 vs ACLS's 5/9, reflecting strong financial health.
| Metric | ACLSAxcelis Technolog… | AMATApplied Materials… |
|---|---|---|
| ROE (TTM)Return on equity | +11.6% | +34.3% |
| ROA (TTM)Return on assets | +8.8% | +19.3% |
| ROICReturn on invested capital | +9.6% | +33.3% |
| ROCEReturn on capital employed | +10.4% | +30.6% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 0.04x | 0.32x |
| Net DebtTotal debt minus cash | -$103M | -$686M |
| Cash & Equiv.Liquid assets | $145M | $7.2B |
| Total DebtShort + long-term debt | $42M | $6.6B |
| Interest CoverageEBIT ÷ Interest expense | 33.79x | 35.46x |
Total Returns (with DRIP)
A $10,000 investment in AMAT five years ago would be worth $31,004 today (with dividends reinvested), compared to $20,803 for ACLS. Over the past 12 months, AMAT leads with a +136.7% total return vs ACLS's +50.8%. The 3-year compound annual growth rate (CAGR) favors AMAT at 48.1% vs ACLS's -13.7% — a key indicator of consistent wealth creation.
| Metric | ACLSAxcelis Technolog… | AMATApplied Materials… |
|---|---|---|
| YTD ReturnYear-to-date | -4.1% | +38.6% |
| 1-Year ReturnPast 12 months | +50.8% | +136.7% |
| 3-Year ReturnCumulative with dividends | -35.7% | +224.6% |
| 5-Year ReturnCumulative with dividends | +108.0% | +210.0% |
| 10-Year ReturnCumulative with dividends | +726.1% | +1926.2% |
| CAGR (3Y)Annualised 3-year return | -13.7% | +48.1% |
Risk & Volatility
ACLS is the less volatile stock with a 1.62 beta — it tends to amplify market swings less than AMAT's 1.66 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. AMAT currently trades 94.0% from its 52-week high vs ACLS's 80.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ACLSAxcelis Technolog… | AMATApplied Materials… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.62x | 1.66x |
| 52-Week HighHighest price in past year | $102.93 | $395.95 |
| 52-Week LowLowest price in past year | $40.40 | $123.74 |
| % of 52W HighCurrent price vs 52-week peak | +80.3% | +94.0% |
| RSI (14)Momentum oscillator 0–100 | 46.7 | 63.2 |
| Avg Volume (50D)Average daily shares traded | 597K | 6.3M |
Analyst Outlook
Wall Street rates ACLS as "Buy" and AMAT as "Buy". Consensus price targets imply 33.2% upside for ACLS (target: $110) vs 13.0% for AMAT (target: $421). AMAT is the only dividend payer here at 0.46% yield — a key consideration for income-focused portfolios.
| Metric | ACLSAxcelis Technolog… | AMATApplied Materials… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $110.00 | $420.83 |
| # AnalystsCovering analysts | 12 | 53 |
| Dividend YieldAnnual dividend ÷ price | — | +0.5% |
| Dividend StreakConsecutive years of raises | 0 | 8 |
| Dividend / ShareAnnual DPS | — | $1.71 |
| Buyback YieldShare repurchases ÷ mkt cap | +4.5% | +1.7% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Axcelis Technologie… (ACLS) | 100 | 370.81 | +270.8% |
| Applied Materials, … (AMAT) | 100 | 545.88 | +445.9% |
Applied Materials, … (AMAT) returned +210% over 5 years vs Axcelis Technologie… (ACLS)'s +108%. A $10,000 investment in AMAT 5 years ago would be worth $31,004 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Axcelis Technologie… (ACLS) | $267M | $839M | +214.3% |
| Applied Materials, … (AMAT) | $10.8B | $28.4B | +162.1% |
Axcelis Technologies, Inc.'s revenue grew from $267M (2016) to $839M (2025) — a 13.6% CAGR. Applied Materials, Inc.'s revenue grew from $10.8B (2016) to $28.4B (2025) — a 11.3% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Axcelis Technologie… (ACLS) | 4.1% | 14.3% | +247.8% |
| Applied Materials, … (AMAT) | 15.9% | 24.7% | +55.2% |
Axcelis Technologies, Inc.'s net margin went from 4% (2016) to 14% (2025). Applied Materials, Inc.'s net margin went from 16% (2016) to 25% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Axcelis Technologie… (ACLS) | 7.6 | 21.1 | +177.6% |
| Applied Materials, … (AMAT) | 16.1 | 29.7 | +84.5% |
Axcelis Technologies, Inc. has traded in a 8x–48x P/E range over 9 years; current trailing P/E is ~22x. Applied Materials, Inc. has traded in a 11x–30x P/E range over 9 years; current trailing P/E is ~43x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Axcelis Technologie… (ACLS) | 0.36 | 3.8 | +955.6% |
| Applied Materials, … (AMAT) | 1.54 | 8.66 | +462.3% |
Axcelis Technologies, Inc.'s EPS grew from $0.36 (2016) to $3.80 (2025) — a 30% CAGR. Applied Materials, Inc.'s EPS grew from $1.54 (2016) to $8.66 (2025) — a 21% CAGR.
Chart 6Free Cash Flow — 5 Years
Axcelis Technologies, Inc. generated $107M FCF in 2025 (-24% vs 2021). Applied Materials, Inc. generated $6B FCF in 2025 (+19% vs 2021).
ACLS vs AMAT: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ACLS or AMAT a better buy right now?
Axcelis Technologies, Inc. (ACLS) offers the better valuation at 21.7x trailing P/E (22.6x forward), making it the more compelling value choice. Analysts rate Axcelis Technologies, Inc. (ACLS) a "Buy" — based on 12 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — ACLS or AMAT?
On trailing P/E, Axcelis Technologies, Inc. (ACLS) is the cheapest at 21.7x versus Applied Materials, Inc. at 43.0x. On forward P/E, Axcelis Technologies, Inc. is actually cheaper at 22.6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Axcelis Technologies, Inc. wins at 1.07x versus Applied Materials, Inc.'s 1.97x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — ACLS or AMAT?
Over the past 5 years, Applied Materials, Inc. (AMAT) delivered a total return of +210.0%, compared to +108.0% for Axcelis Technologies, Inc. (ACLS). A $10,000 investment in AMAT five years ago would be worth approximately $31K today (assuming dividends reinvested). Over 10 years, the gap is even starker: AMAT returned +1926% versus ACLS's +726.1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ACLS or AMAT?
By beta (market sensitivity over 5 years), Axcelis Technologies, Inc. (ACLS) is the lower-risk stock at 1.62β versus Applied Materials, Inc.'s 1.66β — meaning AMAT is approximately 2% more volatile than ACLS relative to the S&P 500. On balance sheet safety, Axcelis Technologies, Inc. (ACLS) carries a lower debt/equity ratio of 4% versus 32% for Applied Materials, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — ACLS or AMAT?
Applied Materials, Inc. (AMAT) is the more profitable company, earning 24.7% net margin versus 14.3% for Axcelis Technologies, Inc. — meaning it keeps 24.7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AMAT leads at 29.2% versus 14.2% for ACLS. At the gross margin level — before operating expenses — AMAT leads at 48.7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is ACLS or AMAT more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Axcelis Technologies, Inc. (ACLS) is the more undervalued stock at a PEG of 1.07x versus Applied Materials, Inc.'s 1.97x. A PEG below 1.5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Axcelis Technologies, Inc. (ACLS) trades at 22.6x forward P/E versus 33.9x for Applied Materials, Inc. — 11.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ACLS: 33.2% to $110.00.
07Which pays a better dividend — ACLS or AMAT?
In this comparison, AMAT (0.5% yield) pays a dividend. ACLS does not pay a meaningful dividend and should not be held primarily for income.
08Is ACLS or AMAT better for a retirement portfolio?
For long-horizon retirement investors, Applied Materials, Inc. (AMAT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1926% 10Y return). Axcelis Technologies, Inc. (ACLS) carries a higher beta of 1.62 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (AMAT: +1926%, ACLS: +726.1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between ACLS and AMAT?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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