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 2026-07-10.
Applied Materials, Inc. · Technology
$603.04
-45.0% upside to fair value
Grade C High Quality
VS
Danaher Corporation · Healthcare
$195.98
+7.9% upside to fair value
Grade B High Quality
QuantHub Verdict
DHR has more upside to fair value (+7.9%). DHR trades at a lower forward P/E (37.8x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric AMAT DHR
Current Price $603.04 $195.98
Fair Value Estimate $331.67 $211.54
Upside to Fair Value -45.0% +7.9%
Market Cap $478.8B $138.7B
Forward P/E 56.4x 37.8x
EV / EBITDA 43.0x 22.8x
Price / Sales 16.5x 5.6x
Price / FCF 80.3x 26.2x
Revenue Growth YoY +11.4% +3.7%
Gross Margin 49.0% 60.7%
Operating Margin 29.5% 21.0%
Return on Equity 39.8% 7.1%
Dividend Yield 0% 0%
FCF Yield 1.25% 3.81%
Analyst Consensus Strong Buy Strong Buy
Investment Thesis
AMAT — Applied Materials, Inc.
Applied Materials, Inc. is a leading semiconductor equipment company with a strong competitive moat in multiple wafer fab equipment segments, driven by its scale, infrastructure, and technology leadership in AI-critical process steps. The company benefits from a seasoned management team led by CEO Gary Dickerson, who has over 12 years at the helm and a track record of strong revenue and profitabi…
DHR — Danaher Corporation
Danaher Corporation operates in the healthcare sector, specifically in medical diagnostics and research, delivering high-quality products with a durable competitive moat supported by strong margins and consistent earnings growth. The company trades at a trailing and forward P/E of 37.76, which is relatively high but justified by its stable revenue growth of 3.7% and earnings growth of 7.9% in the…
Accumulation Zones
Metric AMAT DHR
Zone Low $248.75 $158.66
Zone High $281.92 $179.81
In Buy Zone? No No
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