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 2026-04-22.
Applied Materials, Inc. · Technology
$394.33
-58.9% upside to fair value
Grade C
High Quality
VS
Tesla, Inc. · Consumer Cyclical
$343.23
-5.3% upside to fair value
Low Conviction
Grade D
QuantHub Verdict
TSLA has more upside to fair value
(-5.3%).
AMAT trades at a lower forward P/E
(39.9x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
TSLA |
| Current Price |
$394.33 |
$343.23 |
| Fair Value Estimate |
$162.08 |
$325.00 |
| Upside to Fair Value |
-58.9%
|
-5.3%
|
| Market Cap |
$312.9B |
$1,287.9B |
| Forward P/E |
39.9x
|
205.5x
|
| EV / EBITDA |
31.6x
|
108.8x
|
| Price / Sales |
11.1x
|
13.6x
|
| Price / FCF |
50.5x
|
207.1x
|
| Revenue Growth YoY |
-2.1%
|
-2.9%
|
| Gross Margin |
48.7%
|
18.0%
|
| Operating Margin |
29.1%
|
4.6%
|
| Return on Equity |
38.9%
|
4.8%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.98%
|
0.48%
|
| Analyst Consensus |
Strong Buy
|
—
|
Investment Thesis
Applied Materials, Inc. is a leading global provider of semiconductor and display equipment, specializing in materials engineering solutions critical to chip manufacturing. The company benefits from a durable competitive moat supported by its market leadership, innovation engine with over 8,500 patents since 2013, and a strong management team led by CEO Gary E. Dickerson. Despite these strengths,…
Tesla remains the most polarizing stock in markets. The core auto business is deteriorating: FY2025 revenue fell 2.9% to $94.8B, net income dropped 46.8% to $3.8B, and Q4 deliveries declined 15.6% YoY to 418K units. Yet the stock trades at 13.6x TTM P/S (near 5yr highs) on the optionality of Cybercab robotaxis launching April 2026, FSD reaching unsupervised status in Austin, and Optimus humanoid …
Accumulation Zones
| Metric |
AMAT |
TSLA |
| Zone Low |
$121.56 |
$244.00 |
| Zone High |
$137.77 |
$276.00 |
| In Buy Zone? |
No
|
No
|