AMAT vs SBUX: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Starbucks Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-24.
Applied Materials, Inc. · Technology
$474.38
-3.5% upside to fair value
Med Conviction
Grade C
High Quality
VS
Starbucks Corporation · Consumer Cyclical
$96.67
+12.3% upside to fair value
Med Conviction
Grade C
QuantHub Verdict
SBUX has more upside to fair value
(+12.3%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
AMAT |
SBUX |
| Current Price |
$474.38 |
$96.67 |
| Fair Value Estimate |
$457.95 |
$108.52 |
| Upside to Fair Value |
-3.5%
|
+12.3%
|
| Market Cap |
$376.6B |
$110.2B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.1x
|
22.0x
|
| Price / Sales |
12.2x
|
2.9x
|
| Price / FCF |
67.0x
|
30.4x
|
| Revenue Growth YoY |
+24.8%
|
-1.4%
|
| Gross Margin |
49.4%
|
31.7%
|
| Operating Margin |
30.5%
|
9.4%
|
| Return on Equity |
40.4%
|
-24.3%
|
| Dividend Yield |
0.42% |
2.57% |
| FCF Yield |
1.49%
|
3.29%
|
| Analyst Consensus |
Strong Buy
|
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…
Starbucks is the world's largest specialty coffee retailer, operating company-owned and licensed coffeehouses across North America, International, and Channel Development segments, with a brand that has historically supported premium pricing and global scale. The business quality is currently strained: revenue declined 1.4% year over year in the most recent quarter, TTM operating margin is 9.4%, …
Accumulation Zones
| Metric |
AMAT |
SBUX |
| Zone Low |
$343.46 |
$81.39 |
| Zone High |
$389.26 |
$92.24 |
| In Buy Zone? |
No
|
No
|