AMAT vs HD: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and The Home Depot, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-20.
Applied Materials, Inc. · Technology
$406.91
-12.0% upside to fair value
Grade B-
High Quality
VS
The Home Depot, Inc. · Consumer Cyclical
$302.44
+22.0% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
HD has more upside to fair value
(+22.0%).
HD trades at a lower forward P/E
(20.5x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
HD |
| Current Price |
$406.91 |
$302.44 |
| Fair Value Estimate |
$358.00 |
$369.00 |
| Upside to Fair Value |
-12.0%
|
+22.0%
|
| Market Cap |
$322.9B |
$301.2B |
| Forward P/E |
30.3x
|
20.5x
|
| EV / EBITDA |
30.2x
|
16.5x
|
| Price / Sales |
10.2x
|
2.0x
|
| Price / FCF |
51.6x
|
26.6x
|
| Revenue Growth YoY |
+11.0%
|
+4.8%
|
| Gross Margin |
49.9%
|
33.3%
|
| Operating Margin |
31.9%
|
12.7%
|
| Return on Equity |
47.0%
|
110.5%
|
| Dividend Yield |
0.45% |
2.72% |
| FCF Yield |
1.94%
|
3.75%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Applied Materials is the world's leading semiconductor and display equipment company, and the May 14 Q2 fiscal 2026 print materially strengthened the operating story. Revenue grew 11 percent year over year to a record $7.91 billion, non-GAAP earnings per share of $2.86 beat consensus of $2.68, and management guided Q3 to a record $8.95 billion in revenue with non-GAAP earnings per share of $3.36 …
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and an expanding Pro contractor segment bolstered by the SRS Distribution acquisition. Q1 FY2026 results released May 19 beat both the top and bottom line, with revenue of $41.77B up 4.8% year over year and adjusted EPS of $3.43 versus the $3.41 consensus. Comp sales grew only 0.6% howe…
Accumulation Zones
| Metric |
AMAT |
HD |
| Zone Low |
$268.50 |
$276.75 |
| Zone High |
$304.30 |
$313.65 |
| In Buy Zone? |
No
|
Yes
|