AMAT vs NOW: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and ServiceNow, 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
ServiceNow, Inc. · Technology
$139.82
+16.2% upside to fair value
Med Conviction
Grade A-
High Quality
QuantHub Verdict
NOW has more upside to fair value
(+16.2%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
AMAT |
NOW |
| Current Price |
$474.38 |
$139.82 |
| Fair Value Estimate |
$457.95 |
$162.50 |
| Upside to Fair Value |
-3.5%
|
+16.2%
|
| Market Cap |
$376.6B |
$144.6B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.1x
|
43.1x
|
| Price / Sales |
12.2x
|
9.8x
|
| Price / FCF |
67.0x
|
31.5x
|
| Revenue Growth YoY |
+24.8%
|
+24.0%
|
| Gross Margin |
49.4%
|
74.8%
|
| Operating Margin |
30.5%
|
11.4%
|
| Return on Equity |
40.4%
|
13.8%
|
| Dividend Yield |
0.42% |
0% |
| FCF Yield |
1.49%
|
3.17%
|
| 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…
ServiceNow provides a cloud-based enterprise workflow platform spanning IT service management, operations, employee workflows, CRM, AI orchestration and security. Business quality is high because its common data model, deeply embedded workflows and cross-department deployments create meaningful switching costs, while roughly 90% of the Fortune 500 use the platform and more than 85 billion workflo…
Accumulation Zones
| Metric |
AMAT |
NOW |
| Zone Low |
$343.46 |
$121.88 |
| Zone High |
$389.26 |
$138.12 |
| In Buy Zone? |
No
|
No
|