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 2026-05-04.
Applied Materials, Inc. · Technology
$412.79
-59.0% upside to fair value
Grade C
High Quality
VS
RTX Corporation · Industrials
$172.90
-21.3% upside to fair value
Grade D
QuantHub Verdict
RTX has more upside to fair value
(-21.3%).
RTX trades at a lower forward P/E
(32.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
RTX |
| Current Price |
$412.79 |
$172.90 |
| Fair Value Estimate |
$169.16 |
$136.05 |
| Upside to Fair Value |
-59.0%
|
-21.3%
|
| Market Cap |
$327.6B |
$232.8B |
| Forward P/E |
41.8x
|
32.1x
|
| EV / EBITDA |
33.1x
|
19.2x
|
| Price / Sales |
11.7x
|
2.6x
|
| Price / FCF |
53.0x
|
27.9x
|
| Revenue Growth YoY |
-2.1%
|
+8.7%
|
| Gross Margin |
48.7%
|
20.2%
|
| Operating Margin |
29.1%
|
10.4%
|
| Return on Equity |
38.9%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.89%
|
3.59%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Applied Materials, Inc. is the world's leading semiconductor and display equipment company, specializing in materials engineering solutions for chip manufacturing and advanced displays. The company benefits from a durable competitive moat driven by market leadership, innovation with over 8,500 patents, and a strong management team led by CEO Gary E. Dickerson with over 12 years tenure. Despite re…
RTX Corporation is a leading aerospace and defense company with a diversified portfolio spanning Pratt & Whitney jet engines, Collins Aerospace avionics, and Raytheon Intelligence & Space defense systems. The company benefits from a strong competitive moat supported by a $271 billion backlog and multi-year contracts, driving consistent revenue growth of 10% in 2025 and 9% in Q1 2026. Earnings gro…
Accumulation Zones
| Metric |
AMAT |
RTX |
| Zone Low |
$126.87 |
$102.04 |
| Zone High |
$143.79 |
$115.64 |
| In Buy Zone? |
No
|
No
|