AMAT vs JNJ: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Johnson & Johnson — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-15.
Applied Materials, Inc. · Technology
$603.04
-45.0% upside to fair value
Grade C
High Quality
VS
Johnson & Johnson · Healthcare
$253.85
-21.7% upside to fair value
Grade D
High Quality
QuantHub Verdict
JNJ has more upside to fair value
(-21.7%).
JNJ trades at a lower forward P/E
(29.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
JNJ |
| Current Price |
$603.04 |
$253.85 |
| Fair Value Estimate |
$331.67 |
$198.76 |
| Upside to Fair Value |
-45.0%
|
-21.7%
|
| Market Cap |
$478.8B |
$611.1B |
| Forward P/E |
56.4x
|
29.3x
|
| EV / EBITDA |
43.0x
|
19.2x
|
| Price / Sales |
16.5x
|
6.3x
|
| Price / FCF |
80.3x
|
34.3x
|
| Revenue Growth YoY |
+11.4%
|
+9.9%
|
| Gross Margin |
49.0%
|
69.1%
|
| Operating Margin |
29.5%
|
26.9%
|
| Return on Equity |
39.8%
|
26.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.25%
|
2.91%
|
| Analyst Consensus |
Strong Buy
|
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…
Johnson & Johnson is a leading healthcare conglomerate operating primarily in the drug manufacturing sector, known for its durable competitive moat supported by strong brand recognition and intangible assets. The company exhibits high business quality with a 26.3% return on equity and robust gross and net margins of 69.1% and 21.8%, respectively. However, earnings have faced significant pressure,…
Accumulation Zones
| Metric |
AMAT |
JNJ |
| Zone Low |
$248.75 |
$149.07 |
| Zone High |
$281.92 |
$168.95 |
| In Buy Zone? |
No
|
No
|