AMAT vs HON: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Honeywell International Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-26.
Applied Materials, Inc. · Technology
$474.38
-3.5% upside to fair value
Med Conviction
Grade C
High Quality
VS
Honeywell International Inc. · Industrials
$212.55
-8.5% upside to fair value
Med Conviction
Grade C
QuantHub Verdict
AMAT has more upside to fair value
(-3.5%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
HON |
| Current Price |
$474.38 |
$212.55 |
| Fair Value Estimate |
$457.95 |
$194.50 |
| Upside to Fair Value |
-3.5%
|
-8.5%
|
| Market Cap |
$376.6B |
$67.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.1x
|
7.4x
|
| Price / Sales |
12.2x
|
1.9x
|
| Price / FCF |
67.0x
|
16.4x
|
| Revenue Growth YoY |
+24.8%
|
-6.1%
|
| Gross Margin |
49.4%
|
36.6%
|
| Operating Margin |
30.5%
|
14.1%
|
| Return on Equity |
40.4%
|
41.7%
|
| Dividend Yield |
0.42% |
2.09% |
| FCF Yield |
1.49%
|
6.11%
|
| Analyst Consensus |
Strong Buy
|
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…
Honeywell International Inc. is a 101,000-employee diversified industrial technology and manufacturing conglomerate, led by CEO Vimal Kapur, spanning Aerospace, Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions. Business quality is solid but not exceptional: the company carries a durable intangible-asset and switching-cost moat in aerospace avion…
Accumulation Zones
| Metric |
AMAT |
HON |
| Zone Low |
$343.46 |
$145.88 |
| Zone High |
$389.26 |
$165.32 |
| In Buy Zone? |
No
|
No
|