AMAT vs PYPL: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and PayPal Holdings, 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
PayPal Holdings, Inc. · Financial Services
$42.51
+45.0% upside to fair value
Grade B
QuantHub Verdict
PYPL has more upside to fair value
(+45.0%).
PYPL trades at a lower forward P/E
(7.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
PYPL |
| Current Price |
$603.04 |
$42.51 |
| Fair Value Estimate |
$331.67 |
$61.64 |
| Upside to Fair Value |
-45.0%
|
+45.0%
|
| Market Cap |
$478.8B |
$37.5B |
| Forward P/E |
56.4x
|
7.7x
|
| EV / EBITDA |
43.0x
|
5.3x
|
| Price / Sales |
16.5x
|
1.1x
|
| Price / FCF |
80.3x
|
6.8x
|
| Revenue Growth YoY |
+11.4%
|
+7.2%
|
| Gross Margin |
49.0%
|
46.1%
|
| Operating Margin |
29.5%
|
17.9%
|
| Return on Equity |
39.8%
|
25.1%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.25%
|
14.71%
|
| Analyst Consensus |
Strong Buy
|
Sell
|
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…
PayPal Holdings, Inc. operates as a leading global digital payments platform with a competitive moat driven by its extensive network effects, brand recognition, and scale. Despite a durable business model with 2025 revenue of $33.17 billion growing at 4.3% year-over-year and a strong return on equity of 25.1%, the company faces slowing growth and margin pressures, reflected in a 13.5% decline in …
Accumulation Zones
| Metric |
AMAT |
PYPL |
| Zone Low |
$248.75 |
$46.23 |
| Zone High |
$281.92 |
$52.39 |
| In Buy Zone? |
No
|
Yes
|