Applied Materials vs Qnity Electronics
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KIRA’s take AI analyst
I put Applied Materials and Qnity Electronics side by side, using each one’s latest annual report. Here is what stands out:
- Applied Materials is the larger business, with $28.4B of revenue in fiscal 2025 against $4.8B for Qnity Electronics, about 6.0 times as much.
- Qnity Electronics grew revenue faster (9.7%, against 4.4%).
- Qnity Electronics turned more of its sales into free cash flow (20.8% FCF margin, against 20.1%).
- Applied Materials earned a higher return on the capital invested in it (35.9%, against 7.3%).
Who comes out ahead
Of the 8 measures where higher (or lower) is clearly better, how many each company leads.
Applied Materials
AMAT
6/8
Gross marginNet marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
Qnity Electronics
Q
2/8
Revenue growthFCF margin
Side by side
Best in the row
| Latest fiscal year | AMAT FY25 | Q FY25 |
|---|---|---|
| Size | ||
| Market cap | $301.8B | $23.1B |
| Revenue | $28.4B | $4.8B |
| Free cash flow | $5.7B | $988M |
| Net income | $7.0B | $729M |
| Growth | ||
| Revenue growth | 4.4% | 9.7% |
| 5-year growth | 10.5% | — |
| Share count change | −3.1% | 0.2% |
| Profitability | ||
| Gross margin | 48.7% | 46.2% |
| Operating margin | 29.2% | — |
| Net margin | 24.7% | 15.3% |
| FCF margin | 20.1% | 20.8% |
| Return on capital | 35.9% | 7.3% |
| Return on equity | 35.5% | 8.2% |
| Balance sheet | ||
| Net debt | −$2.0B | $3.2B |
| Net debt / EBITDA | −0.2x | 2.3x |
| Dividends and buybacks | $6.3B | $13.0M |
| Valuation & quality | ||
| P/E | 32.5x | — |
| Piotroski F-score | 7 | — |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
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.