AMAT vs TSLA: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Tesla, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-20.
Applied Materials, Inc. · Technology
$406.91
-12.0% upside to fair value
Grade B-
High Quality
VS
Tesla, Inc. · Consumer Cyclical
$387.51
-45.0% upside to fair value
Grade D
QuantHub Verdict
AMAT has more upside to fair value
(-12.0%).
AMAT trades at a lower forward P/E
(30.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
TSLA |
| Current Price |
$406.91 |
$387.51 |
| Fair Value Estimate |
$358.00 |
$213.13 |
| Upside to Fair Value |
-12.0%
|
-45.0%
|
| Market Cap |
$322.9B |
$1,454.1B |
| Forward P/E |
30.3x
|
330.0x
|
| EV / EBITDA |
30.2x
|
122.9x
|
| Price / Sales |
10.2x
|
15.3x
|
| Price / FCF |
51.6x
|
233.8x
|
| Revenue Growth YoY |
+11.0%
|
-3.1%
|
| Gross Margin |
49.9%
|
18.0%
|
| Operating Margin |
31.9%
|
4.6%
|
| Return on Equity |
47.0%
|
4.8%
|
| Dividend Yield |
0.45% |
0% |
| FCF Yield |
1.94%
|
0.43%
|
| Analyst Consensus |
Strong Buy
|
Hold
|
Investment Thesis
Applied Materials is the world's leading semiconductor and display equipment company, and the May 14 Q2 fiscal 2026 print materially strengthened the operating story. Revenue grew 11 percent year over year to a record $7.91 billion, non-GAAP earnings per share of $2.86 beat consensus of $2.68, and management guided Q3 to a record $8.95 billion in revenue with non-GAAP earnings per share of $3.36 …
Tesla, Inc. is a leading global manufacturer of electric vehicles, energy storage, and solar products, led by CEO Elon Musk since 2008. The company has a mixed business quality profile with a strong brand and innovation leadership but faces significant challenges including declining automotive revenue, which fell nearly 10% year-over-year in 2025, and a 3.1% revenue decline in the most recent qua…
Accumulation Zones
| Metric |
AMAT |
TSLA |
| Zone Low |
$268.50 |
$159.85 |
| Zone High |
$304.30 |
$181.16 |
| In Buy Zone? |
No
|
No
|