AMAT vs TMO: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Thermo Fisher Scientific 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
Thermo Fisher Scientific Inc. · Healthcare
$464.61
+7.2% upside to fair value
Grade A
High Quality
QuantHub Verdict
TMO has more upside to fair value
(+7.2%).
TMO trades at a lower forward P/E
(25.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
TMO |
| Current Price |
$603.04 |
$464.61 |
| Fair Value Estimate |
$331.67 |
$498.27 |
| Upside to Fair Value |
-45.0%
|
+7.2%
|
| Market Cap |
$478.8B |
$172.7B |
| Forward P/E |
56.4x
|
25.2x
|
| EV / EBITDA |
43.0x
|
19.1x
|
| Price / Sales |
16.5x
|
3.8x
|
| Price / FCF |
80.3x
|
25.6x
|
| Revenue Growth YoY |
+11.4%
|
+6.2%
|
| Gross Margin |
49.0%
|
39.4%
|
| Operating Margin |
29.5%
|
17.8%
|
| Return on Equity |
39.8%
|
13.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.25%
|
3.91%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
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…
Thermo Fisher Scientific is a leading healthcare company specializing in life science tools, diagnostics, and contract research and manufacturing services. It operates with a broad, multi-layered moat driven by scale, integration, and a long-tenured management team. The company exhibits solid fundamentals with a 13.3% ROE, 6.2% revenue growth, and 9.6% earnings growth in the most recent quarter. …
Accumulation Zones
| Metric |
AMAT |
TMO |
| Zone Low |
$248.75 |
$373.70 |
| Zone High |
$281.92 |
$423.53 |
| In Buy Zone? |
No
|
No
|