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 2026-09-25.
Applied Materials, Inc. · Technology
$474.38
-3.5% upside to fair value
Med Conviction
Grade C
High Quality
VS
The Home Depot, Inc. · Consumer Cyclical
$292.18
+44.2% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
HD has more upside to fair value
(+44.2%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
AMAT |
HD |
| Current Price |
$474.38 |
$292.18 |
| Fair Value Estimate |
$457.95 |
$421.26 |
| Upside to Fair Value |
-3.5%
|
+44.2%
|
| Market Cap |
$376.6B |
$291.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.1x
|
14.7x
|
| Price / Sales |
12.2x
|
1.7x
|
| Price / FCF |
67.0x
|
19.2x
|
| Revenue Growth YoY |
+24.8%
|
+5.7%
|
| Gross Margin |
49.4%
|
33.2%
|
| Operating Margin |
30.5%
|
12.4%
|
| Return on Equity |
40.4%
|
102.7%
|
| Dividend Yield |
0.42% |
3.18% |
| FCF Yield |
1.49%
|
5.2%
|
| 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…
The Home Depot is the largest home-improvement retailer in the United States, operating a network of roughly 2,300 stores supported by about 472,400 full-time employees, and serving both do-it-yourself homeowners and professional contractors through stores, homedepot.com, and specialty sites such as blinds.com. The business quality is high: it generates a 102.7% return on equity, a 33.2% trailing…
Accumulation Zones
| Metric |
AMAT |
HD |
| Zone Low |
$343.46 |
$315.94 |
| Zone High |
$389.26 |
$358.07 |
| In Buy Zone? |
No
|
Yes
|