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 2026-05-20.
Applied Materials, Inc. · Technology
$406.91
-12.0% upside to fair value
Grade B-
High Quality
VS
Palo Alto Networks, Inc. · Technology
$174.41
-0.1% upside to fair value
Grade B
High Quality
QuantHub Verdict
PANW has more upside to fair value
(-0.1%).
AMAT trades at a lower forward P/E
(30.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
PANW |
| Current Price |
$406.91 |
$174.41 |
| Fair Value Estimate |
$358.00 |
$174.18 |
| Upside to Fair Value |
-12.0%
|
-0.1%
|
| Market Cap |
$322.9B |
$118.9B |
| Forward P/E |
30.3x
|
94.6x
|
| EV / EBITDA |
30.2x
|
52.3x
|
| Price / Sales |
10.2x
|
12.0x
|
| Price / FCF |
51.6x
|
29.2x
|
| Revenue Growth YoY |
+11.0%
|
+14.9%
|
| Gross Margin |
49.9%
|
73.5%
|
| Operating Margin |
31.9%
|
14.4%
|
| Return on Equity |
47.0%
|
15.5%
|
| Dividend Yield |
0.45% |
0% |
| FCF Yield |
1.94%
|
3.42%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Applied Materials is the world's leading semiconductor and display equipment company, and the May 14 Q2 fiscal 2026 print materially strengthened the operating story. Revenue grew 11 percent year over year to a record $7.91 billion, non-GAAP earnings per share of $2.86 beat consensus of $2.68, and management guided Q3 to a record $8.95 billion in revenue with non-GAAP earnings per share of $3.36 …
Palo Alto Networks, Inc. is a leading global cybersecurity company specializing in AI-driven security platforms with a strong recurring revenue base exceeding 80% of total revenue. The company benefits from a high gross margin of 73.5% and solid profitability with a net margin of 13.0%, supported by accelerating revenue growth of 14.9% and earnings growth of 61.6% in the most recent quarter. Unde…
Accumulation Zones
| Metric |
AMAT |
PANW |
| Zone Low |
$268.50 |
$130.63 |
| Zone High |
$304.30 |
$148.05 |
| In Buy Zone? |
No
|
No
|