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 2026-05-20.
Applied Materials, Inc. · Technology
$406.91
-12.0% upside to fair value
Grade B-
High Quality
VS
Johnson & Johnson · Healthcare
$230.69
+10.8% upside to fair value
Grade C
High Quality
QuantHub Verdict
JNJ has more upside to fair value
(+10.8%).
JNJ trades at a lower forward P/E
(26.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
JNJ |
| Current Price |
$406.91 |
$230.69 |
| Fair Value Estimate |
$358.00 |
$255.61 |
| Upside to Fair Value |
-12.0%
|
+10.8%
|
| Market Cap |
$322.9B |
$555.9B |
| Forward P/E |
30.3x
|
26.8x
|
| EV / EBITDA |
30.2x
|
18.5x
|
| Price / Sales |
10.2x
|
5.8x
|
| Price / FCF |
51.6x
|
28.2x
|
| Revenue Growth YoY |
+11.0%
|
+9.9%
|
| Gross Margin |
49.9%
|
69.1%
|
| Operating Margin |
31.9%
|
26.9%
|
| Return on Equity |
47.0%
|
26.5%
|
| Dividend Yield |
0.45% |
0% |
| FCF Yield |
1.94%
|
3.54%
|
| 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 …
Johnson & Johnson is a leading healthcare company focused on pharmaceuticals and medical devices following its consumer health spin-off. The business quality is high due to its durable competitive moat, diversified portfolio, and strong management with deep institutional knowledge. Despite a 52.4% decline in earnings in the most recent quarter, revenue grew 9.9% year-over-year in the same period,…
Accumulation Zones
| Metric |
AMAT |
JNJ |
| Zone Low |
$268.50 |
$191.71 |
| Zone High |
$304.30 |
$217.27 |
| In Buy Zone? |
No
|
No
|