AMAT vs ANET: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Arista Networks, 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
Arista Networks, Inc. · Technology
$172.62
+12.4% upside to fair value
Grade C
High Quality
QuantHub Verdict
ANET has more upside to fair value
(+12.4%).
AMAT trades at a lower forward P/E
(30.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
ANET |
| Current Price |
$406.91 |
$172.62 |
| Fair Value Estimate |
$358.00 |
$193.98 |
| Upside to Fair Value |
-12.0%
|
+12.4%
|
| Market Cap |
$322.9B |
$217.4B |
| Forward P/E |
30.3x
|
61.8x
|
| EV / EBITDA |
30.2x
|
54.8x
|
| Price / Sales |
10.2x
|
24.1x
|
| Price / FCF |
51.6x
|
51.1x
|
| Revenue Growth YoY |
+11.0%
|
+28.9%
|
| Gross Margin |
49.9%
|
64.1%
|
| Operating Margin |
31.9%
|
42.8%
|
| Return on Equity |
47.0%
|
31.0%
|
| Dividend Yield |
0.45% |
0% |
| FCF Yield |
1.94%
|
1.96%
|
| 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 …
Arista Networks is a leading provider of software-driven cloud networking solutions focused on AI, cloud, and data center markets. The company benefits from durable competitive advantages including a highly experienced leadership team led by CEO Jayshree Ullal, who has driven growth from startup to a $100 billion market cap S&P 500 company. Arista's business quality is high, supported by strong r…
Accumulation Zones
| Metric |
AMAT |
ANET |
| Zone Low |
$268.50 |
$145.48 |
| Zone High |
$304.30 |
$164.88 |
| In Buy Zone? |
No
|
No
|