Head to Head Survey: Applied Materials (NASDAQ:AMAT) vs. Summit Wireless Technologies (NASDAQ:WISA)

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

Dividends

Applied Materials pays an annual dividend of $0.84 per share and has a dividend yield of 1.5%. Summit Wireless Technologies does not pay a dividend. Applied Materials pays out 27.6% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Applied Materials and Summit Wireless Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Applied Materials $14.61 billion 3.55 $2.71 billion $3.04 18.45
Summit Wireless Technologies $1.37 million 15.34 -$67.36 million N/A N/A

Applied Materials has higher revenue and earnings than Summit Wireless Technologies.

Volatility and Risk

Applied Materials has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500. Comparatively, Summit Wireless Technologies has a beta of -0.09, indicating that its share price is 109% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Applied Materials and Summit Wireless Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Applied Materials 2 4 15 0 2.62
Summit Wireless Technologies 0 0 1 0 3.00

Applied Materials currently has a consensus target price of $62.55, suggesting a potential upside of 11.52%. Summit Wireless Technologies has a consensus target price of $3.00, suggesting a potential upside of 252.94%. Given Summit Wireless Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Summit Wireless Technologies is more favorable than Applied Materials.

Profitability

This table compares Applied Materials and Summit Wireless Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Applied Materials 18.52% 35.13% 15.23%
Summit Wireless Technologies -694.31% -462.87% -241.61%

Institutional & Insider Ownership

79.0% of Applied Materials shares are held by institutional investors. Comparatively, 1.5% of Summit Wireless Technologies shares are held by institutional investors. 0.4% of Applied Materials shares are held by company insiders. Comparatively, 16.1% of Summit Wireless Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Applied Materials beats Summit Wireless Technologies on 9 of the 14 factors compared between the two stocks.

Applied Materials Company Profile

Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. It operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits. This segment also offers various technologies, 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 comprising 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, monitors, laptops, 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. It operates in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. Applied Materials, Inc. was founded in 1967 and is headquartered in Santa Clara, California.

Summit Wireless Technologies Company Profile

Summit Wireless Technologies, Inc. develops wireless audio integrated circuits for home entertainment and professional audio markets in the United States, Europe, and the Asia Pacific. The company offers TX modules for TVs, AV receivers, media hubs, and small dongles that connect through USB or HDMI ports; and speaker systems. The company has a strategic partnership with THX Ltd. to develop wireless sound technology for gaming, Esports, and home entertainment. The company was formerly known as Summit Semiconductor, Inc. and changed its name to Summit Wireless Technologies, Inc. in September 2018. Summit Semiconductor, Inc. was founded in 2010 and is headquartered in San Jose, California.

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