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 2026-04-22.
Applied Materials, Inc. · Technology
$394.33
-58.9% upside to fair value
Grade C
High Quality
VS
Merck & Co., Inc. · Healthcare
$119.07
-4.0% upside to fair value
Grade D
High Quality
QuantHub Verdict
MRK has more upside to fair value
(-4.0%).
MRK trades at a lower forward P/E
(16.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
MRK |
| Current Price |
$394.33 |
$119.07 |
| Fair Value Estimate |
$162.08 |
$114.30 |
| Upside to Fair Value |
-58.9%
|
-4.0%
|
| Market Cap |
$312.9B |
$294.4B |
| Forward P/E |
39.9x
|
16.2x
|
| EV / EBITDA |
31.6x
|
12.6x
|
| Price / Sales |
11.1x
|
4.5x
|
| Price / FCF |
50.5x
|
23.8x
|
| Revenue Growth YoY |
-2.1%
|
+5.0%
|
| Gross Margin |
48.7%
|
81.5%
|
| Operating Margin |
29.1%
|
41.2%
|
| Return on Equity |
38.9%
|
36.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.98%
|
4.2%
|
| Analyst Consensus |
Strong Buy
|
Hold
|
Investment Thesis
Applied Materials, Inc. is a leading global provider of semiconductor and display equipment, specializing in materials engineering solutions critical to chip manufacturing. The company benefits from a durable competitive moat supported by its market leadership, innovation engine with over 8,500 patents since 2013, and a strong management team led by CEO Gary E. Dickerson. Despite these strengths,…
Merck & Co., Inc. is a leading global healthcare company specializing in pharmaceuticals, particularly oncology and vaccines. The company benefits from a strong business quality characterized by a durable competitive moat, high gross margins of 81.5%, and a robust return on equity of 36.2%. Despite these strengths, the stock is currently fairly valued but slightly overvalued by 4% relative to its…
Accumulation Zones
| Metric |
AMAT |
MRK |
| Zone Low |
$121.56 |
$85.72 |
| Zone High |
$137.77 |
$97.16 |
| In Buy Zone? |
No
|
No
|