AMAT vs NFLX: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Netflix, 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
Netflix, Inc. · Communication Services
$76.41
+44.0% upside to fair value
High Conviction
Grade A
High Quality
QuantHub Verdict
NFLX has more upside to fair value
(+44.0%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
AMAT |
NFLX |
| Current Price |
$474.38 |
$76.41 |
| Fair Value Estimate |
$457.95 |
$110.00 |
| Upside to Fair Value |
-3.5%
|
+44.0%
|
| Market Cap |
$376.6B |
$318.2B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.1x
|
10.6x
|
| Price / Sales |
12.2x
|
6.6x
|
| Price / FCF |
67.0x
|
29.1x
|
| Revenue Growth YoY |
+24.8%
|
+13.4%
|
| Gross Margin |
49.4%
|
49.1%
|
| Operating Margin |
30.5%
|
29.7%
|
| Return on Equity |
40.4%
|
48.0%
|
| Dividend Yield |
0.42% |
0% |
| FCF Yield |
1.49%
|
3.44%
|
| Analyst Consensus |
Strong Buy
|
Strong 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…
Netflix is a global subscription and advertising-supported entertainment platform with a high-quality brand, content engine, recommendation technology and distribution scale, evidenced by more than 97 billion viewing hours in the first half of 2026 and an audience approaching one billion people. Fundamentals remain strong: revenue grew 13.4% year over year in the most recent quarter, TTM gross, o…
Accumulation Zones
| Metric |
AMAT |
NFLX |
| Zone Low |
$343.46 |
$82.50 |
| Zone High |
$389.26 |
$93.50 |
| In Buy Zone? |
No
|
Yes
|