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 2026-07-14.
Applied Materials, Inc. · Technology
$603.04
-45.0% upside to fair value
Grade C
High Quality
VS
Honeywell International Inc. · Industrials
$222.25
-5.5% upside to fair value
Grade D
High Quality
QuantHub Verdict
HON has more upside to fair value
(-5.5%).
HON trades at a lower forward P/E
(15.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
HON |
| Current Price |
$603.04 |
$222.25 |
| Fair Value Estimate |
$331.67 |
$210.05 |
| Upside to Fair Value |
-45.0%
|
-5.5%
|
| Market Cap |
$478.8B |
$70.4B |
| Forward P/E |
56.4x
|
15.7x
|
| EV / EBITDA |
43.0x
|
13.1x
|
| Price / Sales |
16.5x
|
1.9x
|
| Price / FCF |
80.3x
|
17.1x
|
| Revenue Growth YoY |
+11.4%
|
-6.9%
|
| Gross Margin |
49.0%
|
36.9%
|
| Operating Margin |
29.5%
|
14.9%
|
| Return on Equity |
39.8%
|
23.6%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.25%
|
5.84%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
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…
Honeywell International Inc. operates as a diversified industrial conglomerate with a strong presence in multiple sectors including aerospace, building technologies, and performance materials. The company demonstrates high business quality with a durable competitive moat supported by strong margins, a 23.6% return on equity, and solid free cash flow generation of $16.78 per share. However, recent…
Accumulation Zones
| Metric |
AMAT |
HON |
| Zone Low |
$248.75 |
$157.54 |
| Zone High |
$281.92 |
$178.54 |
| In Buy Zone? |
No
|
No
|