AMAT vs COST: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Costco Wholesale 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
Costco Wholesale Corporation · Consumer Defensive
$999.89
-20.7% upside to fair value
Grade D
High Quality
QuantHub Verdict
AMAT has more upside to fair value
(-12.0%).
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 |
COST |
| Current Price |
$406.91 |
$999.89 |
| Fair Value Estimate |
$358.00 |
$793.02 |
| Upside to Fair Value |
-12.0%
|
-20.7%
|
| Market Cap |
$322.9B |
$443.6B |
| Forward P/E |
30.3x
|
51.9x
|
| EV / EBITDA |
30.2x
|
30.9x
|
| Price / Sales |
10.2x
|
1.6x
|
| Price / FCF |
51.6x
|
48.8x
|
| Revenue Growth YoY |
+11.0%
|
+9.2%
|
| Gross Margin |
49.9%
|
12.9%
|
| Operating Margin |
31.9%
|
3.8%
|
| Return on Equity |
47.0%
|
28.8%
|
| Dividend Yield |
0.45% |
0% |
| FCF Yield |
1.94%
|
2.05%
|
| Analyst Consensus |
Strong Buy
|
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 …
Costco Wholesale Corporation operates a global membership-based warehouse club model that leverages scale, low costs, and superior employee retention to deliver consistent revenue and earnings growth. The company reported $269.9 billion in net sales for fiscal 2025 with an 8% year-over-year increase, driven by strong segments in Foods and Sundries and membership fees exceeding $5.65 billion in th…
Accumulation Zones
| Metric |
AMAT |
COST |
| Zone Low |
$268.50 |
$594.76 |
| Zone High |
$304.30 |
$674.07 |
| In Buy Zone? |
No
|
No
|