AMAT vs ETN: Which Is the Better Buy?

Side-by-side comparison of Applied Materials, Inc. and Eaton Corporation plc — fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-08-06.
Applied Materials, Inc. · Technology
$603.04
-45.0% upside to fair value
Grade C High Quality
VS
Eaton Corporation plc · Industrials
$447.28
-9.5% upside to fair value
Med Conviction Grade C+
QuantHub Verdict
ETN has more upside to fair value (-9.5%). ETN trades at a lower forward P/E (33.2x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric AMAT ETN
Current Price $603.04 $447.28
Fair Value Estimate $331.67 $405.00
Upside to Fair Value -45.0% -9.5%
Market Cap $478.8B $173.7B
Forward P/E 56.4x 33.2x
EV / EBITDA 43.0x 30.0x
Price / Sales 16.5x 5.8x
Price / FCF 80.3x 38.6x
Revenue Growth YoY +11.4% +21.0%
Gross Margin 49.0% 35.9%
Operating Margin 29.5% 17.7%
Return on Equity 39.8% 18.9%
Dividend Yield 0% 0.98%
FCF Yield 1.25% 2.59%
Analyst Consensus Strong Buy 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…
ETN — Eaton Corporation plc
Eaton is a 115-year-old power management company whose Electrical Americas, Electrical Global and Aerospace segments have become a core beneficiary of the same AI data-center, grid modernization and reshoring supercycle driving GE Vernova and Vertiv. Q2 2026 results were record-setting: revenue of $8.5 billion (up 21% year over year, 14% organic), adjusted EPS of $3.15, and segment margins of 23.…
Accumulation Zones
Metric AMAT ETN
Zone Low $248.75 $305.00
Zone High $281.92 $345.00
In Buy Zone? No No
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