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 2026-09-25.
Applied Materials, Inc. · Technology
$474.38
-3.5% upside to fair value
Med Conviction
Grade C
High Quality
VS
Costco Wholesale Corporation · Consumer Defensive
$896.48
+24.7% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
COST has more upside to fair value
(+24.7%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
COST |
| Current Price |
$474.38 |
$896.48 |
| Fair Value Estimate |
$457.95 |
$1,117.50 |
| Upside to Fair Value |
-3.5%
|
+24.7%
|
| Market Cap |
$376.6B |
$397.6B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.1x
|
32.7x
|
| Price / Sales |
12.2x
|
1.3x
|
| Price / FCF |
67.0x
|
42.4x
|
| Revenue Growth YoY |
+24.8%
|
+11.1%
|
| Gross Margin |
49.4%
|
17.5%
|
| Operating Margin |
30.5%
|
3.9%
|
| Return on Equity |
40.4%
|
28.0%
|
| Dividend Yield |
0.42% |
0.62% |
| FCF Yield |
1.49%
|
2.36%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Applied Materials is the largest supplier of wafer fabrication equipment, providing deposition, etch, ion implantation, and process-control tools alongside a growing Applied Global Services aftermarket business to semiconductor manufacturers worldwide. The business quality is high: TTM gross margin of 49.4%, TTM operating margin of 30.5%, TTM net margin of 30.1%, and ROE of 40.4% reflect a durabl…
Costco Wholesale Corporation operates a global network of membership-based warehouse clubs, selling branded and private-label merchandise across the United States, Canada, Mexico, Japan, the United Kingdom, South Korea, Taiwan, Australia, Spain, France, Iceland, and China, supplemented by pharmacies, optical centers, food courts, hearing aid centers, tire installation, 636 gas stations, and e-com…
Accumulation Zones
| Metric |
AMAT |
COST |
| Zone Low |
$343.46 |
$838.12 |
| Zone High |
$389.26 |
$949.88 |
| In Buy Zone? |
No
|
Yes
|