AMAT vs MRK: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Merck & Co., Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-06.
Applied Materials, Inc. · Technology
$603.04
-45.0% upside to fair value
Grade C
High Quality
VS
Merck & Co., Inc. · Healthcare
$113.87
-12.1% upside to fair value
Grade D
High Quality
QuantHub Verdict
MRK has more upside to fair value
(-12.1%).
MRK trades at a lower forward P/E
(32.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
MRK |
| Current Price |
$603.04 |
$113.87 |
| Fair Value Estimate |
$331.67 |
$100.14 |
| Upside to Fair Value |
-45.0%
|
-12.1%
|
| Market Cap |
$478.8B |
$281.2B |
| Forward P/E |
56.4x
|
32.0x
|
| EV / EBITDA |
43.0x
|
17.3x
|
| Price / Sales |
16.5x
|
4.3x
|
| Price / FCF |
80.3x
|
19.9x
|
| Revenue Growth YoY |
+11.4%
|
+4.3%
|
| Gross Margin |
49.0%
|
75.9%
|
| Operating Margin |
29.5%
|
27.6%
|
| Return on Equity |
39.8%
|
17.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.25%
|
5.02%
|
| Analyst Consensus |
Strong Buy
|
Hold
|
Investment Thesis
Applied Materials, Inc. is a leading semiconductor equipment company with a strong competitive moat in multiple wafer fab equipment segments, driven by its scale, infrastructure, and technology leadership in AI-critical process steps. The company benefits from a seasoned management team led by CEO Gary Dickerson, who has over 12 years at the helm and a track record of strong revenue and profitabi…
Merck & Co., Inc. is a leading global healthcare company specializing in pharmaceuticals, vaccines, and animal health products. Its business quality is high, supported by a durable competitive moat anchored in the dominant global position of Keytruda in PD-1/PD-L1 oncology, a strong vaccines portfolio including Gardasil, and scale in R&D and manufacturing. The company benefits from a seasoned lea…
Accumulation Zones
| Metric |
AMAT |
MRK |
| Zone Low |
$248.75 |
$75.11 |
| Zone High |
$281.92 |
$85.12 |
| In Buy Zone? |
No
|
No
|