Spi Energy (NASDAQ:SPI) and Applied Materials (NASDAQ:AMAT) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Spi Energy and Applied Materials, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spi Energy 0 0 0 0 N/A
Applied Materials 2 3 19 0 2.71

Applied Materials has a consensus target price of $67.43, suggesting a potential upside of 50.76%. Given Applied Materials’ higher possible upside, analysts clearly believe Applied Materials is more favorable than Spi Energy.

Profitability

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

Net Margins Return on Equity Return on Assets
Spi Energy N/A N/A N/A
Applied Materials 18.83% 36.15% 15.71%

Insider and Institutional Ownership

80.8% of Applied Materials shares are owned by institutional investors. 0.4% of Applied Materials shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Spi Energy and Applied Materials’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spi Energy $125.58 million 0.09 -$12.28 million N/A N/A
Applied Materials $14.61 billion 2.81 $2.71 billion $3.04 14.71

Applied Materials has higher revenue and earnings than Spi Energy.

Volatility and Risk

Spi Energy has a beta of 4.46, indicating that its share price is 346% more volatile than the S&P 500. Comparatively, Applied Materials has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Summary

Applied Materials beats Spi Energy on 10 of the 11 factors compared between the two stocks.

About Spi Energy

SPI Energy Co., Ltd. provides photovoltaic solutions for business, residential, government, and utility customers and investors. It offers engineering, procurement, and construction services to independent power developers and producers, and commercial and industrial companies. The company also develops, owns, and operates solar projects that sell electricity to power companies and other electricity off-takers. As of December 31, 2017, it owned and operated 73.12 megawatts of solar projects. The company operates in China, Greece, the United States, Italy, Japan, the United Kingdom, Australia, and Germany. SPI Energy Co., Ltd. is headquartered in Shatin, Hong Kong.

About Applied Materials

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.

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