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 2026-05-20.
Applied Materials, Inc. · Technology
$406.91
-12.0% upside to fair value
Grade B-
High Quality
VS
Amazon.com, Inc. · Consumer Cyclical
$259.34
+21.8% upside to fair value
Grade B
High Quality
QuantHub Verdict
AMZN has more upside to fair value
(+21.8%).
AMZN trades at a lower forward P/E
(26.5x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
AMZN |
| Current Price |
$406.91 |
$259.34 |
| Fair Value Estimate |
$358.00 |
$316.00 |
| Upside to Fair Value |
-12.0%
|
+21.8%
|
| Market Cap |
$322.9B |
$2,789.8B |
| Forward P/E |
30.3x
|
26.5x
|
| EV / EBITDA |
30.2x
|
16.8x
|
| Price / Sales |
10.2x
|
3.9x
|
| Price / FCF |
51.6x
|
—
|
| Revenue Growth YoY |
+11.0%
|
+17.0%
|
| Gross Margin |
49.9%
|
51.8%
|
| Operating Margin |
31.9%
|
13.1%
|
| Return on Equity |
47.0%
|
21.5%
|
| Dividend Yield |
0.45% |
0% |
| FCF Yield |
1.94%
|
-0.81%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
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 …
Amazon delivered a landmark Q1 2026 with revenue of $181.5 billion up 17% year over year and diluted EPS of $2.78 versus the $1.63 consensus, driven by AWS reaccelerating to 28% growth, its fastest pace in fifteen quarters, and a record consolidated operating margin of 13.1%. AWS generated $37.6 billion in revenue at a 37.7% segment operating margin, contributing $14.2 billion in operating income…
Accumulation Zones
| Metric |
AMAT |
AMZN |
| Zone Low |
$268.50 |
$237.00 |
| Zone High |
$304.30 |
$268.60 |
| In Buy Zone? |
No
|
Yes
|