AMAT vs GOOGL: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Alphabet Inc. — 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
Alphabet Inc. · Communication Services
$342.36
+16.6% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
GOOGL has more upside to fair value
(+16.6%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
AMAT |
GOOGL |
| Current Price |
$474.38 |
$342.36 |
| Fair Value Estimate |
$457.95 |
$399.26 |
| Upside to Fair Value |
-3.5%
|
+16.6%
|
| Market Cap |
$376.6B |
$4,143.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.1x
|
12.9x
|
| Price / Sales |
12.2x
|
9.3x
|
| Price / FCF |
67.0x
|
78.1x
|
| Revenue Growth YoY |
+24.8%
|
+24.2%
|
| Gross Margin |
49.4%
|
60.9%
|
| Operating Margin |
30.5%
|
33.1%
|
| Return on Equity |
40.4%
|
50.8%
|
| Dividend Yield |
0.42% |
0.25% |
| FCF Yield |
1.49%
|
1.28%
|
| 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…
Alphabet is the parent of Google Services (Search, YouTube, Android, Chrome, hardware, and the Play store), Google Cloud, and Other Bets, and it remains one of the highest-quality large-cap franchises in the market, with a TTM gross margin of 60.9%, TTM operating margin of 33.1%, TTM net margin of 54.8%, and a 50.8% return on equity. Revenue growth in the most recent quarter was 24.2% year over y…
Accumulation Zones
| Metric |
AMAT |
GOOGL |
| Zone Low |
$343.46 |
$299.44 |
| Zone High |
$389.26 |
$339.37 |
| In Buy Zone? |
No
|
No
|