AMAT vs LULU: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Lululemon Athletica Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-04.
Applied Materials, Inc. · Technology
$412.79
-59.0% upside to fair value
Grade C
High Quality
VS
Lululemon Athletica Inc. · Consumer Cyclical
$128.98
+307.7% upside to fair value
Grade C
QuantHub Verdict
LULU has more upside to fair value
(+307.7%).
LULU trades at a lower forward P/E
(9.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
LULU |
| Current Price |
$412.79 |
$128.98 |
| Fair Value Estimate |
$169.16 |
$525.85 |
| Upside to Fair Value |
-59.0%
|
+307.7%
|
| Market Cap |
$327.6B |
$15.1B |
| Forward P/E |
41.8x
|
9.7x
|
| EV / EBITDA |
33.1x
|
5.6x
|
| Price / Sales |
11.7x
|
1.4x
|
| Price / FCF |
53.0x
|
16.4x
|
| Revenue Growth YoY |
-2.1%
|
+0.8%
|
| Gross Margin |
48.7%
|
56.6%
|
| Operating Margin |
29.1%
|
19.8%
|
| Return on Equity |
38.9%
|
34.8%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.89%
|
6.09%
|
| Analyst Consensus |
Strong Buy
|
Hold
|
Investment Thesis
Applied Materials, Inc. is the world's leading semiconductor and display equipment company, specializing in materials engineering solutions for chip manufacturing and advanced displays. The company benefits from a durable competitive moat driven by market leadership, innovation with over 8,500 patents, and a strong management team led by CEO Gary E. Dickerson with over 12 years tenure. Despite re…
Lululemon Athletica Inc. is a premium athletic apparel retailer operating primarily in the consumer cyclical sector with a focus on apparel retail. The company has a strong brand and historically high profitability with a gross margin of 56.6% and ROE of 34.8%, but it faces significant near-term challenges including earnings pressure with a 21.6% decline in earnings in the most recent quarter and…
Accumulation Zones
| Metric |
AMAT |
LULU |
| Zone Low |
$126.87 |
$394.39 |
| Zone High |
$143.79 |
$446.97 |
| In Buy Zone? |
No
|
Yes
|