Head to Head Analysis: EMCORE (EMKR) & Applied Materials (AMAT)

EMCORE (NASDAQ: EMKR) and Applied Materials (NASDAQ:AMAT) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Dividends

Applied Materials pays an annual dividend of $0.40 per share and has a dividend yield of 0.8%. EMCORE does not pay a dividend. Applied Materials pays out 12.3% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares EMCORE and Applied Materials’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EMCORE $122.89 million 1.14 $8.23 million $0.39 13.08
Applied Materials $14.54 billion 3.63 $3.43 billion $3.25 15.44

Applied Materials has higher revenue and earnings than EMCORE. EMCORE is trading at a lower price-to-earnings ratio than Applied Materials, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

EMCORE has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, Applied Materials has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for EMCORE and Applied Materials, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EMCORE 0 0 3 0 3.00
Applied Materials 0 3 19 1 2.91

EMCORE presently has a consensus price target of $6.33, suggesting a potential upside of 24.18%. Applied Materials has a consensus price target of $64.83, suggesting a potential upside of 29.01%. Given Applied Materials’ higher probable upside, analysts plainly believe Applied Materials is more favorable than EMCORE.

Profitability

This table compares EMCORE and Applied Materials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EMCORE 1.44% 1.72% 1.46%
Applied Materials 19.24% 51.65% 22.65%

Institutional and Insider Ownership

77.4% of EMCORE shares are held by institutional investors. Comparatively, 75.5% of Applied Materials shares are held by institutional investors. 2.0% of EMCORE shares are held by company insiders. Comparatively, 0.4% of Applied Materials shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Applied Materials beats EMCORE on 13 of the 17 factors compared between the two stocks.

EMCORE Company Profile

EMCORE Corporation, together with its subsidiaries, provides advanced mixed-signal optics products in California. It offers broadband products comprising cable television; laser, receiver, and photodetector component products; radio frequency over glass FTTP products; satellite/microwave communications products; and wireless communications products. The company also provides chip devices products, including high-power gain chips, GPON fiber-to-the-premises, and data center chip products; and navigation systems products, such as fiber optic gyroscope products and inertial measurement units and navigation systems products. It sells its products through direct sales force, application engineers, third party sales representatives, and distributors. EMCORE Corporation was founded in 1984 and is headquartered in Alhambra, California.

Applied Materials Company Profile

Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries worldwide. It operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells a range of manufacturing equipment used to fabricate semiconductor chips or integrated circuits. It offers products and technologies for transistor and interconnect fabrication, including epitaxy, ion implantation, oxidation and nitridation, rapid thermal processing, physical vapor deposition, chemical vapor deposition, chemical mechanical planarization, electrochemical deposition, atomic layer deposition, etching, and selective removal, as well as metrology and inspection tools. The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity, including spares, upgrades, services, remanufactured earlier generation equipment, and factory automation software for semiconductor, display, and other products. The Display and Adjacent Markets segment offers products for manufacturing liquid crystal displays, organic light-emitting diodes, and other display technologies for TVs, personal computers, electronic tablets, smart phones, and other consumer-oriented devices, as well as equipment for flexible substrates. The company serves manufacturers of semiconductor wafers and chips, liquid crystal and organic light-emitting diode displays, and other electronic devices. Applied Materials, Inc. was founded in 1967 and is headquartered in Santa Clara, California.

Receive News & Ratings for EMCORE Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for EMCORE and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply