Contrasting Mobix Labs (NASDAQ:MOBX) & Applied Materials (NASDAQ:AMAT)

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Applied Materials and Mobix Labs, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Materials	0	7	27	0	2.79
Mobix Labs	1	0	0	0	1.00

Applied Materials currently has a consensus target price of $368.29, indicating a potential downside of 5.34%. Given Applied Materials’ stronger consensus rating and higher probable upside, equities analysts clearly believe Applied Materials is more favorable than Mobix Labs.

Valuation and Earnings

This table compares Applied Materials and Mobix Labs”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Materials	$28.37 billion	10.88	$7.00 billion	$9.77	39.82
Mobix Labs	$9.91 million	2.42	-$46.13 million	($6.80)	-0.34

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Applied Materials	27.78%	37.52%	21.33%
Mobix Labs	-289.21%	-2,857.36%	-103.36%

Risk and Volatility

Applied Materials has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500. Comparatively, Mobix Labs has a beta of -0.78, suggesting that its share price is 178% less volatile than the S&P 500.

Institutional and Insider Ownership

80.6% of Applied Materials shares are held by institutional investors. Comparatively, 8.6% of Mobix Labs shares are held by institutional investors. 0.3% of Applied Materials shares are held by company insiders. Comparatively, 16.7% of Mobix Labs shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Applied Materials beats Mobix Labs on 13 of the 14 factors compared between the two stocks.

About Applied Materials

Applied Materials, Inc. engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company 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/nitridation, rapid thermal processing, physical vapor deposition, chemical vapor deposition, chemical mechanical planarization, electrochemical deposition, atomic layer deposition, etching, and selective deposition and 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. It operates in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. The company was incorporated in 1967 and is headquartered in Santa Clara, California.

About Mobix Labs

Mobix Labs, Inc., a fabless semiconductor company, provides wireless and connectivity solutions for next generation communication systems, including C-Band and mmWave 5G and high bandwidth cable applications. Its products include True5G chipset solutions; true xero active optical cables and related products designed to deliver fiber optic connectivity for a range of applications, including 5G infrastructure, autonomous vehicles, Pro A/V, AR/VR, remote medical systems, and others; electromagnetic interference filters deployed in aerospace, military, defense, medical, and healthcare products. The company was incorporated in 2020 and is based in Irvine, California. Mobix Labs, Inc. operates as a subsidiary of YDENS HOLDINGS, LLC.