AMAT vs BAC: Which Is the Better Buy?

Side-by-side comparison of Applied Materials, Inc. and Bank of America Corporation — 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
Bank of America Corporation · Financial Services
$53.95
-41.2% upside to fair value
Grade C
QuantHub Verdict
AMAT has more upside to fair value (-12.0%). BAC trades at a lower forward P/E (12.3x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric AMAT BAC
Current Price $406.91 $53.95
Fair Value Estimate $358.00 $31.74
Upside to Fair Value -12.0% -41.2%
Market Cap $322.9B $387.2B
Forward P/E 30.3x 12.3x
EV / EBITDA 30.2x 12.7x
Price / Sales 10.2x 2.2x
Price / FCF 51.6x 30.7x
Revenue Growth YoY +11.0% -35.6%
Gross Margin 49.9% 63.2%
Operating Margin 31.9% 22.9%
Return on Equity 47.0% 10.5%
Dividend Yield 0.45% 0%
FCF Yield 1.94% 3.26%
Analyst Consensus Strong Buy Strong Buy
Investment Thesis
AMAT — Applied Materials, Inc.
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 …
BAC — Bank of America Corporation
Bank of America Corporation is a leading diversified bank with $3.41 trillion in assets and a broad footprint across consumer banking, global markets, wealth management, and corporate banking. The company benefits from a strong market position and experienced leadership under CEO Brian T. Moynihan. However, the stock is currently overvalued, trading approximately 36% above its fair value estimate…
Accumulation Zones
Metric AMAT BAC
Zone Low $268.50 $23.80
Zone High $304.30 $26.98
In Buy Zone? No No
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