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 2026-07-06.
Applied Materials, Inc. · Technology
$603.04
-45.0% upside to fair value
Grade C High Quality
VS
Amazon.com, Inc. · Consumer Cyclical
$242.67
+22.0% upside to fair value
Grade B High Quality
QuantHub Verdict
AMZN has more upside to fair value (+22.0%). AMZN trades at a lower forward P/E (28.7x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric AMAT AMZN
Current Price $603.04 $242.67
Fair Value Estimate $331.67 $295.95
Upside to Fair Value -45.0% +22.0%
Market Cap $478.8B $2,610.4B
Forward P/E 56.4x 28.7x
EV / EBITDA 43.0x 14.4x
Price / Sales 16.5x 3.5x
Price / FCF 80.3x -1056.0x
Revenue Growth YoY +11.4% +16.6%
Gross Margin 49.0% 50.6%
Operating Margin 29.5% 11.5%
Return on Equity 39.8% 23.3%
Dividend Yield 0% 0%
FCF Yield 1.25%
Analyst Consensus Strong Buy Strong Buy
Investment Thesis
AMAT — Applied Materials, Inc.
Applied Materials, Inc. is a leading semiconductor equipment company with a strong competitive moat in multiple wafer fab equipment segments, driven by its scale, infrastructure, and technology leadership in AI-critical process steps. The company benefits from a seasoned management team led by CEO Gary Dickerson, who has over 12 years at the helm and a track record of strong revenue and profitabi…
AMZN — Amazon.com, Inc.
Amazon.com, Inc. operates a diversified platform with core engines in retail, AWS cloud services, and advertising, leveraging a strong competitive moat driven by scale, logistics, and technology leadership. The company exhibits high business quality with 23.3% ROE, 16.6% revenue growth, and 76.7% earnings growth in the most recent quarter, supported by a widening moat in e-commerce and cloud. Des…
Accumulation Zones
Metric AMAT AMZN
Zone Low $248.75 $221.96
Zone High $281.92 $251.56
In Buy Zone? No Yes
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