AMAT vs ISRG: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Intuitive Surgical, 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
Intuitive Surgical, Inc. · Healthcare
$451.29
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
ISRG has more upside to fair value
(+45.0%).
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 |
ISRG |
| Current Price |
$406.91 |
$451.29 |
| Fair Value Estimate |
$358.00 |
$654.37 |
| Upside to Fair Value |
-12.0%
|
+45.0%
|
| Market Cap |
$322.9B |
$160.3B |
| Forward P/E |
30.3x
|
53.8x
|
| EV / EBITDA |
30.2x
|
40.5x
|
| Price / Sales |
10.2x
|
15.2x
|
| Price / FCF |
51.6x
|
64.3x
|
| Revenue Growth YoY |
+11.0%
|
+23.0%
|
| Gross Margin |
49.9%
|
66.3%
|
| Operating Margin |
31.9%
|
30.5%
|
| Return on Equity |
47.0%
|
17.0%
|
| Dividend Yield |
0.45% |
0% |
| FCF Yield |
1.94%
|
1.55%
|
| Analyst Consensus |
Strong Buy
|
Strong 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 …
Intuitive Surgical, Inc. is a leading healthcare company specializing in robotic-assisted surgery through its flagship da Vinci system, which has established a durable competitive moat with approximately 10,000 systems installed globally and nearly 17 million procedures performed by the end of 2024. The company benefits from a high-quality business model characterized by 85% recurring revenue, st…
Accumulation Zones
| Metric |
AMAT |
ISRG |
| Zone Low |
$268.50 |
$490.78 |
| Zone High |
$304.30 |
$556.21 |
| In Buy Zone? |
No
|
Yes
|