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 2026-09-25.
Applied Materials, Inc. · Technology
$474.38
-3.5% upside to fair value
Med Conviction
Grade C
High Quality
VS
Johnson & Johnson · Healthcare
$270.68
+5.7% upside to fair value
Med Conviction
Grade C
High Quality
QuantHub Verdict
JNJ has more upside to fair value
(+5.7%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
AMAT |
JNJ |
| Current Price |
$474.38 |
$270.68 |
| Fair Value Estimate |
$457.95 |
$286.05 |
| Upside to Fair Value |
-3.5%
|
+5.7%
|
| Market Cap |
$376.6B |
$652.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.1x
|
20.2x
|
| Price / Sales |
12.2x
|
6.7x
|
| Price / FCF |
67.0x
|
35.3x
|
| Revenue Growth YoY |
+24.8%
|
+6.6%
|
| Gross Margin |
49.4%
|
67.9%
|
| Operating Margin |
30.5%
|
26.8%
|
| Return on Equity |
40.4%
|
25.7%
|
| Dividend Yield |
0.42% |
1.95% |
| FCF Yield |
1.49%
|
2.83%
|
| 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…
Johnson & Johnson is a 141,700-employee healthcare holding company operating two segments, Innovative Medicine (immunology, oncology, neuroscience, infectious disease, cardiovascular and metabolism, pulmonary hypertension) and MedTech (interventional solutions, orthopaedics, surgery, vision), founded in 1887 and headquartered in New Brunswick, New Jersey. Business quality is high on fundamentals:…
Accumulation Zones
| Metric |
AMAT |
JNJ |
| Zone Low |
$343.46 |
$214.54 |
| Zone High |
$389.26 |
$243.14 |
| In Buy Zone? |
No
|
No
|