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 2026-04-22.
Applied Materials, Inc. · Technology
$394.33
-58.9% upside to fair value
Grade C
High Quality
VS
Costco Wholesale Corporation · Consumer Defensive
$999.89
-19.1% upside to fair value
Grade D
High Quality
QuantHub Verdict
COST has more upside to fair value
(-19.1%).
AMAT trades at a lower forward P/E
(39.9x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
COST |
| Current Price |
$394.33 |
$999.89 |
| Fair Value Estimate |
$162.08 |
$808.71 |
| Upside to Fair Value |
-58.9%
|
-19.1%
|
| Market Cap |
$312.9B |
$443.6B |
| Forward P/E |
39.9x
|
51.9x
|
| EV / EBITDA |
31.6x
|
30.9x
|
| Price / Sales |
11.1x
|
1.6x
|
| Price / FCF |
50.5x
|
48.8x
|
| Revenue Growth YoY |
-2.1%
|
+9.2%
|
| Gross Margin |
48.7%
|
12.9%
|
| Operating Margin |
29.1%
|
3.8%
|
| Return on Equity |
38.9%
|
28.8%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.98%
|
2.05%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Applied Materials, Inc. is a leading global provider of semiconductor and display equipment, specializing in materials engineering solutions critical to chip manufacturing. The company benefits from a durable competitive moat supported by its market leadership, innovation engine with over 8,500 patents since 2013, and a strong management team led by CEO Gary E. Dickerson. Despite these strengths,…
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 |
$121.56 |
$606.53 |
| Zone High |
$137.77 |
$687.40 |
| In Buy Zone? |
No
|
No
|