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 2026-09-26.
Applied Materials, Inc. · Technology
$474.38
-3.5% upside to fair value
Med Conviction
Grade C
High Quality
VS
Palo Alto Networks, Inc. · Technology
$374.74
-5.2% upside to fair value
Med Conviction
Grade C
High Quality
QuantHub Verdict
AMAT has more upside to fair value
(-3.5%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
AMAT |
PANW |
| Current Price |
$474.38 |
$374.74 |
| Fair Value Estimate |
$457.95 |
$355.11 |
| Upside to Fair Value |
-3.5%
|
-5.2%
|
| Market Cap |
$376.6B |
$305.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.1x
|
569.8x
|
| Price / Sales |
12.2x
|
26.6x
|
| Price / FCF |
67.0x
|
64.0x
|
| Revenue Growth YoY |
+24.8%
|
+34.4%
|
| Gross Margin |
49.4%
|
70.4%
|
| Operating Margin |
30.5%
|
6.1%
|
| Return on Equity |
40.4%
|
1.7%
|
| Dividend Yield |
0.42% |
0% |
| FCF Yield |
1.49%
|
1.56%
|
| 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…
Palo Alto Networks is a global cybersecurity leader built around next-generation firewalls, the Panorama management platform, and a broad subscription portfolio spanning threat prevention, cloud security, secure access, and security analytics, sold to medium and large enterprises, service providers, and governments through direct and channel distribution. The business quality is genuinely high on…
Accumulation Zones
| Metric |
AMAT |
PANW |
| Zone Low |
$343.46 |
$266.33 |
| Zone High |
$389.26 |
$301.84 |
| In Buy Zone? |
No
|
No
|