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 2026-09-24.
Applied Materials, Inc. · Technology
$474.38
-3.5% upside to fair value
Med Conviction
Grade C
High Quality
VS
Merck & Co., Inc. · Healthcare
$147.17
-4.1% upside to fair value
Med Conviction
Grade C
QuantHub Verdict
AMAT has more upside to fair value
(-3.5%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
MRK |
| Current Price |
$474.38 |
$147.17 |
| Fair Value Estimate |
$457.95 |
$141.07 |
| Upside to Fair Value |
-3.5%
|
-4.1%
|
| Market Cap |
$376.6B |
$363.5B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.1x
|
29.6x
|
| Price / Sales |
12.2x
|
5.5x
|
| Price / FCF |
67.0x
|
22.6x
|
| Revenue Growth YoY |
+24.8%
|
+5.1%
|
| Gross Margin |
49.4%
|
75.4%
|
| Operating Margin |
30.5%
|
16.7%
|
| Return on Equity |
40.4%
|
6.6%
|
| Dividend Yield |
0.42% |
2.31% |
| FCF Yield |
1.49%
|
4.42%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Applied Materials is the largest supplier of wafer fabrication equipment, providing deposition, etch, ion implantation, and process-control tools alongside a growing Applied Global Services aftermarket business to semiconductor manufacturers worldwide. The business quality is high: TTM gross margin of 49.4%, TTM operating margin of 30.5%, TTM net margin of 30.1%, and ROE of 40.4% reflect a durabl…
Merck & Co., Inc. is a global healthcare leader with two core divisions, Pharmaceuticals and Animal Health, spanning oncology, vaccines, acute hospital care, immunology, neuroscience, virology, cardiovascular and diabetes, and it employs roughly 74,000 people under CEO Robert Davis. The business quality is medium: TTM gross margin of 75.4% and TTM operating margin of 16.7% reflect a genuinely hig…
Accumulation Zones
| Metric |
AMAT |
MRK |
| Zone Low |
$343.46 |
$105.80 |
| Zone High |
$389.26 |
$119.91 |
| In Buy Zone? |
No
|
No
|