AMAT vs LLY: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Eli Lilly and Company — 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
Eli Lilly and Company · Healthcare
$934.34
+17.6% upside to fair value
Grade B
High Quality
QuantHub Verdict
LLY has more upside to fair value
(+17.6%).
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 |
LLY |
| Current Price |
$406.91 |
$934.34 |
| Fair Value Estimate |
$358.00 |
$1,098.43 |
| Upside to Fair Value |
-12.0%
|
+17.6%
|
| Market Cap |
$322.9B |
$882.8B |
| Forward P/E |
30.3x
|
33.1x
|
| EV / EBITDA |
30.2x
|
27.9x
|
| Price / Sales |
10.2x
|
12.2x
|
| Price / FCF |
51.6x
|
65.0x
|
| Revenue Growth YoY |
+11.0%
|
+55.5%
|
| Gross Margin |
49.9%
|
82.7%
|
| Operating Margin |
31.9%
|
46.3%
|
| Return on Equity |
47.0%
|
101.3%
|
| Dividend Yield |
0.45% |
0% |
| FCF Yield |
1.94%
|
1.54%
|
| 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 …
Eli Lilly and Company is a leading global pharmaceutical firm with a dominant position in the diabetes and obesity markets, driven by its blockbuster GLP-1 drugs Mounjaro and Zepbound which generated $36.5 billion in FY2025. The company reported $65.2 billion in total revenue for 2025, making it the top pharma by revenue globally. It exhibits high business quality with a durable competitive moat …
Accumulation Zones
| Metric |
AMAT |
LLY |
| Zone Low |
$268.50 |
$823.82 |
| Zone High |
$304.30 |
$933.67 |
| In Buy Zone? |
No
|
No
|