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 2026-04-22.
Applied Materials, Inc. · Technology
$394.33
-58.9% upside to fair value
Grade C
High Quality
VS
Johnson & Johnson · Healthcare
$230.69
+14.0% upside to fair value
Grade C
High Quality
QuantHub Verdict
JNJ has more upside to fair value
(+14.0%).
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 |
$394.33 |
$230.69 |
| Fair Value Estimate |
$162.08 |
$263.05 |
| Upside to Fair Value |
-58.9%
|
+14.0%
|
| Market Cap |
$312.9B |
$555.9B |
| Forward P/E |
39.9x
|
26.8x
|
| EV / EBITDA |
31.6x
|
18.5x
|
| Price / Sales |
11.1x
|
5.8x
|
| Price / FCF |
50.5x
|
28.2x
|
| Revenue Growth YoY |
-2.1%
|
+9.9%
|
| Gross Margin |
48.7%
|
69.1%
|
| Operating Margin |
29.1%
|
26.9%
|
| Return on Equity |
38.9%
|
26.5%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.98%
|
3.54%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Applied Materials, Inc. is a leading global provider of semiconductor and display equipment, specializing in materials engineering solutions critical to chip manufacturing. The company benefits from a durable competitive moat supported by its market leadership, innovation engine with over 8,500 patents since 2013, and a strong management team led by CEO Gary E. Dickerson. Despite these strengths,…
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 |
$121.56 |
$197.29 |
| Zone High |
$137.77 |
$223.59 |
| In Buy Zone? |
No
|
No
|