AMAT vs DHR: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Danaher Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-24.
Applied Materials, Inc. · Technology
$474.38
-3.5% upside to fair value
Med Conviction
Grade C
High Quality
VS
Danaher Corporation · Healthcare
$221.12
+29.6% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
DHR has more upside to fair value
(+29.6%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
AMAT |
DHR |
| Current Price |
$474.38 |
$221.12 |
| Fair Value Estimate |
$457.95 |
$286.52 |
| Upside to Fair Value |
-3.5%
|
+29.6%
|
| Market Cap |
$376.6B |
$155.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.1x
|
24.8x
|
| Price / Sales |
12.2x
|
6.2x
|
| Price / FCF |
67.0x
|
28.5x
|
| Revenue Growth YoY |
+24.8%
|
+5.5%
|
| Gross Margin |
49.4%
|
58.5%
|
| Operating Margin |
30.5%
|
20.4%
|
| Return on Equity |
40.4%
|
7.7%
|
| Dividend Yield |
0.42% |
0.65% |
| FCF Yield |
1.49%
|
3.51%
|
| 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…
Danaher is a diversified life-sciences and diagnostics platform spanning three segments: Life Sciences (mass spectrometers, flow cytometry, genomics, bioprocess technologies), Diagnostics (chemistry, immunoassay, microbiology, hematology, molecular and pathology systems), and Environmental & Applied Solutions (water quality and product-identification instrumentation). The business quality is high…
Accumulation Zones
| Metric |
AMAT |
DHR |
| Zone Low |
$343.46 |
$214.89 |
| Zone High |
$389.26 |
$243.54 |
| In Buy Zone? |
No
|
Yes
|