Applied Materials vs Arrow Electronics
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The short version
- Arrow Electronics is the larger business, with $30.9B of revenue in fiscal 2025 against $28.4B for Applied Materials.
- Arrow Electronics grew revenue faster (10.5%, against 4.4%).
- Applied Materials kept more of each dollar of sales as operating profit (29.2% operating margin, against 2.7%).
- Applied Materials turned more of its sales into free cash flow (20.1% FCF margin, against −0.1%).
- Applied Materials earned a higher return on the capital invested in it (35.9%, against 7.3%).
- Investors pay more for each dollar of Applied Materials’s earnings: a P/E of 32.5x against 13.4x for Arrow Electronics.
| Latest fiscal year | AMAT · FY25 | ARW · FY25 |
|---|---|---|
| Size | ||
| Market cap | $301.8B | $10.9B |
| Revenue | $28.4B | $30.9B |
| Free cash flow | $5.7B | −$37.2M |
| Net income | $7.0B | $571M |
| Growth | ||
| Revenue growth | 4.4% | 10.5% |
| 5-year growth | 10.5% | 1.5% |
| Share count change | −3.1% | −2.9% |
| Profitability | ||
| Gross margin | 48.7% | 11.2% |
| Operating margin | 29.2% | 2.7% |
| Net margin | 24.7% | 1.9% |
| FCF margin | 20.1% | −0.1% |
| Return on capital | 35.9% | 7.3% |
| Return on equity | 35.5% | 9.3% |
| Balance sheet | ||
| Net debt | −$2.0B | $2.8B |
| Net debt / EBITDA | −0.2x | 2.9x |
| Dividends and buybacks | $6.3B | $162M |
| Valuation & quality | ||
| P/E | 32.5x | 13.4x |
| Piotroski F-score | 7 | 6 |
Revenue
FY16
AMAT $10.8B
ARW $23.5B
FY17
AMAT $14.7B
ARW $26.6B
FY18
AMAT $16.7B
ARW $29.7B
FY19
AMAT $14.6B
ARW $28.9B
FY20
AMAT $17.2B
ARW $28.7B
FY21
AMAT $23.1B
ARW $34.5B
FY22
AMAT $25.8B
ARW $37.1B
FY23
AMAT $26.5B
ARW $33.1B
FY24
AMAT $27.2B
ARW $27.9B
FY25
AMAT $28.4B
ARW $30.9B
AMAT
ARW
Operating margin
FY16
AMAT 19.9%
ARW 3.7%
FY17
AMAT 26.8%
ARW 3.6%
FY18
AMAT 26.9%
ARW 3.9%
FY19
AMAT 22.9%
ARW 0.4%
FY20
AMAT 25.4%
ARW 3.1%
FY21
AMAT 29.9%
ARW 4.5%
FY22
AMAT 30.2%
ARW 5.6%
FY23
AMAT 28.9%
ARW 4.4%
FY24
AMAT 29.0%
ARW 2.8%
FY25
AMAT 29.2%
ARW 2.7%
AMAT
ARW
Free cash flow
FY16
AMAT $2.3B
ARW $195M
FY17
AMAT $3.4B
ARW −$79.4M
FY18
AMAT $3.2B
ARW $137M
FY19
AMAT $2.8B
ARW $715M
FY20
AMAT $3.4B
ARW $1.2B
FY21
AMAT $4.8B
ARW $336M
FY22
AMAT $4.6B
ARW −$112M
FY23
AMAT $7.6B
ARW $622M
FY24
AMAT $7.5B
ARW $1.0B
FY25
AMAT $5.7B
ARW −$37.2M
AMAT
ARW
Return on capital
FY16
AMAT 26.0%
ARW 10.0%
FY17
AMAT —
ARW 8.0%
FY18
AMAT —
ARW 11.9%
FY19
AMAT 29.8%
ARW 1.1%
FY20
AMAT —
ARW 9.8%
FY21
AMAT —
ARW 16.9%
FY22
AMAT 49.0%
ARW 19.7%
FY23
AMAT 45.0%
ARW 13.9%
FY24
AMAT 43.8%
ARW 7.6%
FY25
AMAT 35.9%
ARW 7.3%
AMAT
ARW
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.