AMAT vs PANW: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Palo Alto Networks, 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
Palo Alto Networks, Inc. · Technology
$287.78
+2.9% upside to fair value
Grade B
High Quality
QuantHub Verdict
PANW has more upside to fair value
(+2.9%).
AMAT trades at a lower forward P/E
(56.4x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
PANW |
| Current Price |
$603.04 |
$287.78 |
| Fair Value Estimate |
$331.67 |
$296.19 |
| Upside to Fair Value |
-45.0%
|
+2.9%
|
| Market Cap |
$478.8B |
$196.1B |
| Forward P/E |
56.4x
|
248.9x
|
| EV / EBITDA |
43.0x
|
85.9x
|
| Price / Sales |
16.5x
|
18.5x
|
| Price / FCF |
80.3x
|
45.7x
|
| Revenue Growth YoY |
+11.4%
|
+31.1%
|
| Gross Margin |
49.0%
|
71.9%
|
| Operating Margin |
29.5%
|
9.6%
|
| Return on Equity |
39.8%
|
6.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.25%
|
2.19%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
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…
Palo Alto Networks is a leading cybersecurity company specializing in next-generation security platforms with a strong subscription and support revenue base comprising approximately 81% of total revenue. The company benefits from a wide and expanding competitive moat driven by its AI- and platform-driven cybersecurity solutions, led by a seasoned management team. Despite strong revenue growth of …
Accumulation Zones
| Metric |
AMAT |
PANW |
| Zone Low |
$248.75 |
$222.14 |
| Zone High |
$281.92 |
$251.76 |
| In Buy Zone? |
No
|
No
|