AMAT vs AMZN: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Amazon.com, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-24.
Applied Materials, Inc. · Technology
$474.38
-3.5% upside to fair value
Med Conviction
Grade C
High Quality
VS
Amazon.com, Inc. · Consumer Cyclical
$251.19
+18.5% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
AMZN has more upside to fair value
(+18.5%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
AMAT |
AMZN |
| Current Price |
$474.38 |
$251.19 |
| Fair Value Estimate |
$457.95 |
$297.67 |
| Upside to Fair Value |
-3.5%
|
+18.5%
|
| Market Cap |
$376.6B |
$2,702.1B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.1x
|
11.2x
|
| Price / Sales |
12.2x
|
3.5x
|
| Price / FCF |
67.0x
|
—
|
| Revenue Growth YoY |
+24.8%
|
+19.6%
|
| Gross Margin |
49.4%
|
50.8%
|
| Operating Margin |
30.5%
|
12.1%
|
| Return on Equity |
40.4%
|
30.5%
|
| Dividend Yield |
0.42% |
0% |
| FCF Yield |
1.49%
|
—
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Applied Materials is the largest supplier of wafer fabrication equipment, providing deposition, etch, ion implantation, and process-control tools alongside a growing Applied Global Services aftermarket business to semiconductor manufacturers worldwide. The business quality is high: TTM gross margin of 49.4%, TTM operating margin of 30.5%, TTM net margin of 30.1%, and ROE of 40.4% reflect a durabl…
Amazon.com operates a vast global retail enterprise spanning online and physical stores, third-party seller services, advertising, subscription offerings, and Amazon Web Services, the world's largest cloud infrastructure provider. The business quality is high: trailing-twelve-month gross margin of 50.8%, operating margin of 12.1%, and net margin of 17.4% reflect a durable mix shift toward high-ma…
Accumulation Zones
| Metric |
AMAT |
AMZN |
| Zone Low |
$343.46 |
$223.25 |
| Zone High |
$389.26 |
$253.02 |
| In Buy Zone? |
No
|
Yes
|