ADBE vs AMAT: Which Is the Better Buy?
Side-by-side comparison of Adobe Inc. and Applied Materials, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-20.
Adobe Inc. · Technology
$248.16
+45.0% upside to fair value
High Conviction
Grade B
VS
Applied Materials, Inc. · Technology
$406.91
-12.0% upside to fair value
Grade B-
High Quality
QuantHub Verdict
ADBE has more upside to fair value
(+45.0%).
ADBE trades at a lower forward P/E
(14.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ADBE |
AMAT |
| Current Price |
$248.16 |
$406.91 |
| Fair Value Estimate |
$359.82 |
$358.00 |
| Upside to Fair Value |
+45.0%
|
-12.0%
|
| Market Cap |
$101.2B |
$322.9B |
| Forward P/E |
14.1x
|
30.3x
|
| EV / EBITDA |
—
|
30.2x
|
| Price / Sales |
4.1x
|
10.2x
|
| Price / FCF |
9.8x
|
51.6x
|
| Revenue Growth YoY |
+3.3%
|
+11.0%
|
| Gross Margin |
89.1%
|
49.9%
|
| Operating Margin |
36.6%
|
31.9%
|
| Return on Equity |
62.3%
|
47.0%
|
| Dividend Yield |
— |
0.45% |
| FCF Yield |
10.2%
|
1.94%
|
| Analyst Consensus |
Hold
|
Strong Buy
|
Investment Thesis
Adobe Inc. develops industry-leading creative software, digital experience platforms, and publishing tools, powering digital content creation and marketing for professionals worldwide. The business excels with high gross margins above 89%, a sticky subscription model driving recurring revenue over $17B ARR, and dominant moats in digital media, though it faces intensifying AI competition and slowi…
Applied Materials is the world's leading semiconductor and display equipment company, and the May 14 Q2 fiscal 2026 print materially strengthened the operating story. Revenue grew 11 percent year over year to a record $7.91 billion, non-GAAP earnings per share of $2.86 beat consensus of $2.68, and management guided Q3 to a record $8.95 billion in revenue with non-GAAP earnings per share of $3.36 …
Accumulation Zones
| Metric |
ADBE |
AMAT |
| Zone Low |
$269.87 |
$268.50 |
| Zone High |
$305.85 |
$304.30 |
| In Buy Zone? |
Yes
|
No
|