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 2026-06-20.
Applied Materials, Inc. · Technology
$617.11
-45.0% upside to fair value
Grade C
High Quality
VS
Lululemon Athletica Inc. · Consumer Cyclical
$111.77
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
LULU has more upside to fair value
(+45.0%).
LULU trades at a lower forward P/E
(9.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
LULU |
| Current Price |
$617.11 |
$111.77 |
| Fair Value Estimate |
$339.41 |
$162.07 |
| Upside to Fair Value |
-45.0%
|
+45.0%
|
| Market Cap |
$490.0B |
$12.7B |
| Forward P/E |
57.7x
|
9.1x
|
| EV / EBITDA |
44.0x
|
5.1x
|
| Price / Sales |
16.9x
|
1.1x
|
| Price / FCF |
82.1x
|
9.9x
|
| Revenue Growth YoY |
+11.4%
|
+4.3%
|
| Gross Margin |
49.0%
|
55.7%
|
| Operating Margin |
29.5%
|
18.2%
|
| Return on Equity |
39.8%
|
31.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.22%
|
10.08%
|
| Analyst Consensus |
Strong Buy
|
Hold
|
Investment Thesis
Applied Materials, Inc. is a leading semiconductor equipment manufacturer specializing in wafer fabrication equipment and services, with a strong competitive moat in deposition, etch, implant, and services segments. Led by CEO Gary Dickerson with over 12 years at the helm, the company has demonstrated durable earnings growth and a robust patent portfolio. Despite solid revenue growth of 11.4% and…
Lululemon Athletica Inc. operates in the premium athletic apparel retail sector, leveraging a strong brand and a durable competitive moat driven by product innovation and global expansion, particularly in China. The company has demonstrated solid capital allocation with organic growth and buybacks, though it faces near-term earnings pressure with a 38% decline in quarterly earnings year-over-year…
Accumulation Zones
| Metric |
AMAT |
LULU |
| Zone Low |
$254.56 |
$121.55 |
| Zone High |
$288.50 |
$137.76 |
| In Buy Zone? |
No
|
Yes
|