Comprehensive Stock Comparison
Compare ASML Holding N.V. (ASML) 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 | ASML | 11.0% revenue growth vs AMAT's 4.4% |
| Value | ASML | PEG 1.68 vs 1.97 |
| Quality / Margins | ASML | 29.4% net margin vs AMAT's 24.7% |
| Stability / Safety | ASML | Beta 1.45 vs AMAT's 1.66, lower leverage |
| Dividends | ASML | 0.5% yield, vs AMAT's 0.5% |
| Momentum (1Y) | AMAT | +136.7% vs ASML's +105.6% |
| Efficiency (ROA) | AMAT | 19.3% ROA vs ASML's 18.3%, ROIC 33.3% vs 80.9% |
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
ASML is the world's only manufacturer of extreme ultraviolet (EUV) lithography machines — the most advanced equipment needed to produce cutting-edge semiconductors. It generates revenue primarily from selling these multi-million-dollar systems (over 80% of sales) and related services like maintenance and upgrades. Its monopoly on EUV technology — which took decades and billions to develop — creates an insurmountable moat, as no competitor can realistically replicate its complex ecosystem.
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
ASML leads in 2 of 6 categories (Financial Metrics, Profitability & Efficiency). AMAT leads in 2 (Valuation Metrics, Total Returns). 2 tied.
Financial Metrics (TTM)
ASML and AMAT operate at a comparable scale, with $31.4B and $28.4B in trailing revenue. Profitability is closely matched — net margins range from 29.4% (ASML) to 24.7% (AMAT). On growth, AMAT holds the edge at -3.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ASMLASML Holding N.V. | AMATApplied Materials… |
|---|---|---|
| RevenueTrailing 12 months | $31.4B | $28.4B |
| EBITDAEarnings before interest/tax | $11.8B | $8.4B |
| Net IncomeAfter-tax profit | $9.2B | $7.0B |
| Free Cash FlowCash after capex | $10.7B | $5.7B |
| Gross MarginGross profit ÷ Revenue | +52.8% | +48.7% |
| Operating MarginEBIT ÷ Revenue | +34.6% | +29.2% |
| Net MarginNet income ÷ Revenue | +29.4% | +24.7% |
| FCF MarginFCF ÷ Revenue | +34.2% | +20.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | -9.0% | -3.5% |
| EPS Growth (YoY)Latest quarter vs prior year | -4.8% | +13.9% |
Valuation Metrics
At 43.0x trailing earnings, AMAT trades at a 17% valuation discount to ASML's 51.8x P/E. Adjusting for growth (PEG ratio), ASML offers better value at 2.10x vs AMAT's 2.50x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | ASMLASML Holding N.V. | AMATApplied Materials… |
|---|---|---|
| Market CapShares × price | $563.0B | $295.2B |
| Enterprise ValueMkt cap + debt − cash | $551.0B | $294.5B |
| Trailing P/EPrice ÷ TTM EPS | 51.82x | 42.99x |
| Forward P/EPrice ÷ next-FY EPS est. | 41.31x | 33.87x |
| PEG RatioP/E ÷ EPS growth rate | 2.10x | 2.50x |
| EV / EBITDAEnterprise value multiple | 39.45x | 35.07x |
| Price / SalesMarket cap ÷ Revenue | 15.21x | 10.41x |
| Price / BookPrice ÷ Book value/share | 24.40x | 14.74x |
| Price / FCFMarket cap ÷ FCF | 44.83x | 51.81x |
Profitability & Efficiency
ASML delivers a 47.1% return on equity — every $100 of shareholder capital generates $47 in annual profit, vs $34 for AMAT. ASML carries lower financial leverage with a 0.14x debt-to-equity ratio, signaling a more conservative balance sheet compared to AMAT's 0.32x. On the Piotroski fundamental quality scale (0–9), ASML scores 8/9 vs AMAT's 7/9, reflecting strong financial health.
| Metric | ASMLASML Holding N.V. | AMATApplied Materials… |
|---|---|---|
| ROE (TTM)Return on equity | +47.1% | +34.3% |
| ROA (TTM)Return on assets | +18.3% | +19.3% |
| ROICReturn on invested capital | +80.9% | +33.3% |
| ROCEReturn on capital employed | +39.6% | +30.6% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 7 |
| Debt / EquityFinancial leverage | 0.14x | 0.32x |
| Net DebtTotal debt minus cash | -$10.2B | -$686M |
| Cash & Equiv.Liquid assets | $12.9B | $7.2B |
| Total DebtShort + long-term debt | $2.7B | $6.6B |
| Interest CoverageEBIT ÷ Interest expense | — | 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 $25,413 for ASML. Over the past 12 months, AMAT leads with a +136.7% total return vs ASML's +105.6%. The 3-year compound annual growth rate (CAGR) favors AMAT at 48.1% vs ASML's 33.5% — a key indicator of consistent wealth creation.
| Metric | ASMLASML Holding N.V. | AMATApplied Materials… |
|---|---|---|
| YTD ReturnYear-to-date | +24.8% | +38.6% |
| 1-Year ReturnPast 12 months | +105.6% | +136.7% |
| 3-Year ReturnCumulative with dividends | +138.1% | +224.6% |
| 5-Year ReturnCumulative with dividends | +154.1% | +210.0% |
| 10-Year ReturnCumulative with dividends | +1540.9% | +1926.2% |
| CAGR (3Y)Annualised 3-year return | +33.5% | +48.1% |
Risk & Volatility
ASML is the less volatile stock with a 1.45 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.
| Metric | ASMLASML Holding N.V. | AMATApplied Materials… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.45x | 1.66x |
| 52-Week HighHighest price in past year | $1547.22 | $395.95 |
| 52-Week LowLowest price in past year | $578.51 | $123.74 |
| % of 52W HighCurrent price vs 52-week peak | +93.8% | +94.0% |
| RSI (14)Momentum oscillator 0–100 | 57.7 | 63.2 |
| Avg Volume (50D)Average daily shares traded | 1.5M | 6.3M |
Analyst Outlook
Wall Street rates ASML as "Buy" and AMAT as "Buy". Consensus price targets imply 13.0% upside for AMAT (target: $421) vs 0.5% for ASML (target: $1459). For income investors, ASML offers the higher dividend yield at 0.51% vs AMAT's 0.46%.
| Metric | ASMLASML Holding N.V. | AMATApplied Materials… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $1458.50 | $420.83 |
| # AnalystsCovering analysts | 44 | 53 |
| Dividend YieldAnnual dividend ÷ price | +0.5% | +0.5% |
| Dividend StreakConsecutive years of raises | 0 | 8 |
| Dividend / ShareAnnual DPS | $6.30 | $1.71 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.2% | +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 |
|---|---|---|---|
| ASML Holding N.V. (ASML) | 100 | 501.37 | +401.4% |
| Applied Materials, … (AMAT) | 100 | 545.88 | +445.9% |
Applied Materials, … (AMAT) returned +210% over 5 years vs ASML Holding N.V. (ASML)'s +154%. 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 |
|---|---|---|---|
| ASML Holding N.V. (ASML) | $6.9B | $31.4B | +356.4% |
| Applied Materials, … (AMAT) | $10.8B | $28.4B | +162.1% |
ASML Holding N.V.'s revenue grew from $6.9B (2016) to $31.4B (2025) — a 18.4% 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 |
|---|---|---|---|
| ASML Holding N.V. (ASML) | 22.7% | 29.4% | +29.8% |
| Applied Materials, … (AMAT) | 15.9% | 24.7% | +55.2% |
ASML Holding N.V.'s net margin went from 23% (2016) to 29% (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 |
|---|---|---|---|
| ASML Holding N.V. (ASML) | 37.7 | 45.1 | +19.6% |
| Applied Materials, … (AMAT) | 16.1 | 29.7 | +84.5% |
ASML Holding N.V. has traded in a 25x–62x P/E range over 9 years; current trailing P/E is ~52x. 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 |
|---|---|---|---|
| ASML Holding N.V. (ASML) | 3.63 | 23.73 | +553.7% |
| Applied Materials, … (AMAT) | 1.54 | 8.66 | +462.3% |
ASML Holding N.V.'s EPS grew from $3.63 (2016) to $23.73 (2025) — a 23% CAGR. Applied Materials, Inc.'s EPS grew from $1.54 (2016) to $8.66 (2025) — a 21% CAGR.
Chart 6Free Cash Flow — 5 Years
ASML Holding N.V. generated $11B FCF in 2025 (+3% vs 2021). Applied Materials, Inc. generated $6B FCF in 2025 (+19% vs 2021).
ASML vs AMAT: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ASML or AMAT a better buy right now?
Applied Materials, Inc. (AMAT) offers the better valuation at 43.0x trailing P/E (33.9x forward), making it the more compelling value choice. Analysts rate ASML Holding N.V. (ASML) a "Buy" — based on 44 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 — ASML or AMAT?
On trailing P/E, Applied Materials, Inc. (AMAT) is the cheapest at 43.0x versus ASML Holding N.V. at 51.8x. On forward P/E, Applied Materials, Inc. is actually cheaper at 33.9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: ASML Holding N.V. wins at 1.68x versus Applied Materials, Inc.'s 1.97x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — ASML or AMAT?
Over the past 5 years, Applied Materials, Inc. (AMAT) delivered a total return of +210.0%, compared to +154.1% for ASML Holding N.V. (ASML). 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 ASML's +1541%. 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 — ASML or AMAT?
By beta (market sensitivity over 5 years), ASML Holding N.V. (ASML) is the lower-risk stock at 1.45β versus Applied Materials, Inc.'s 1.66β — meaning AMAT is approximately 14% more volatile than ASML relative to the S&P 500. On balance sheet safety, ASML Holding N.V. (ASML) carries a lower debt/equity ratio of 14% versus 32% for Applied Materials, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — ASML or AMAT?
ASML Holding N.V. (ASML) is the more profitable company, earning 29.4% net margin versus 24.7% for Applied Materials, Inc. — meaning it keeps 29.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ASML leads at 34.6% versus 29.2% for AMAT. At the gross margin level — before operating expenses — ASML leads at 52.8%, 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 ASML 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, ASML Holding N.V. (ASML) is the more undervalued stock at a PEG of 1.68x versus Applied Materials, Inc.'s 1.97x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Applied Materials, Inc. (AMAT) trades at 33.9x forward P/E versus 41.3x for ASML Holding N.V. — 7.4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AMAT: 13.0% to $420.83.
07Which pays a better dividend — ASML or AMAT?
All stocks in this comparison pay dividends. ASML Holding N.V. (ASML) offers the highest yield at 0.5%, versus 0.5% for Applied Materials, Inc. (AMAT).
08Is ASML or AMAT better for a retirement portfolio?
For long-horizon retirement investors, ASML Holding N.V. (ASML) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0.5% yield, +1541% 10Y return). Applied Materials, Inc. (AMAT) carries a higher beta of 1.66 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ASML: +1541%, AMAT: +1926%), 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 ASML 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. ASML pays a dividend while AMAT does not, making them suitable for different income and tax situations. 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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