AMAT vs RTX: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and RTX Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-06-20.
Applied Materials, Inc. · Technology
$617.11
-45.0% upside to fair value
Grade C
High Quality
VS
RTX Corporation · Industrials
$185.60
-25.2% upside to fair value
Grade D
QuantHub Verdict
RTX has more upside to fair value
(-25.2%).
RTX trades at a lower forward P/E
(34.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
RTX |
| Current Price |
$617.11 |
$185.60 |
| Fair Value Estimate |
$339.41 |
$138.81 |
| Upside to Fair Value |
-45.0%
|
-25.2%
|
| Market Cap |
$490.0B |
$249.9B |
| Forward P/E |
57.7x
|
34.3x
|
| EV / EBITDA |
44.0x
|
18.3x
|
| Price / Sales |
16.9x
|
2.8x
|
| Price / FCF |
82.1x
|
29.9x
|
| Revenue Growth YoY |
+11.4%
|
+8.7%
|
| Gross Margin |
49.0%
|
20.2%
|
| Operating Margin |
29.5%
|
10.9%
|
| Return on Equity |
39.8%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.22%
|
3.34%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Applied Materials, Inc. is a leading semiconductor equipment manufacturer specializing in wafer fabrication equipment and services, with a strong competitive moat in deposition, etch, implant, and services segments. Led by CEO Gary Dickerson with over 12 years at the helm, the company has demonstrated durable earnings growth and a robust patent portfolio. Despite solid revenue growth of 11.4% and…
RTX Corporation is a leading aerospace and defense company with a strong competitive moat driven by scale and an installed base in commercial aerospace via Pratt & Whitney and Collins Aerospace, and defense through Raytheon. The company benefits from a large multi-year backlog of approximately $270 billion supporting steady cash flow and mid-single-digit organic growth. Despite solid revenue grow…
Accumulation Zones
| Metric |
AMAT |
RTX |
| Zone Low |
$254.56 |
$104.11 |
| Zone High |
$288.50 |
$117.99 |
| In Buy Zone? |
No
|
No
|