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 2026-05-20.
Applied Materials, Inc. · Technology
$406.91
-12.0% upside to fair value
Grade B-
High Quality
VS
Honeywell International Inc. · Industrials
$213.17
-14.5% upside to fair value
Grade D
QuantHub Verdict
AMAT has more upside to fair value
(-12.0%).
AMAT trades at a lower forward P/E
(30.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
HON |
| Current Price |
$406.91 |
$213.17 |
| Fair Value Estimate |
$358.00 |
$182.35 |
| Upside to Fair Value |
-12.0%
|
-14.5%
|
| Market Cap |
$322.9B |
$135.1B |
| Forward P/E |
30.3x
|
33.0x
|
| EV / EBITDA |
30.2x
|
23.9x
|
| Price / Sales |
10.2x
|
3.7x
|
| Price / FCF |
51.6x
|
32.4x
|
| Revenue Growth YoY |
+11.0%
|
-6.9%
|
| Gross Margin |
49.9%
|
36.9%
|
| Operating Margin |
31.9%
|
14.9%
|
| Return on Equity |
47.0%
|
23.6%
|
| Dividend Yield |
0.45% |
0% |
| FCF Yield |
1.94%
|
3.09%
|
| 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 …
Honeywell International Inc. is a diversified industrial conglomerate operating across Aerospace Technologies, Building Automation, Process Automation and Technology, and Safety and Productivity Solutions. The company benefits from a strong leadership team with deep internal experience and a history of strategic acquisitions that have expanded its portfolio into high-growth areas such as aerospac…
Accumulation Zones
| Metric |
AMAT |
HON |
| Zone Low |
$268.50 |
$136.76 |
| Zone High |
$304.30 |
$155.00 |
| In Buy Zone? |
No
|
No
|