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 2026-07-06.
Applied Materials, Inc. · Technology
$603.04
-45.0% upside to fair value
Grade C
High Quality
VS
Tesla, Inc. · Consumer Cyclical
$400.49
-1.1% upside to fair value
Grade D
QuantHub Verdict
TSLA has more upside to fair value
(-1.1%).
AMAT trades at a lower forward P/E
(56.4x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
TSLA |
| Current Price |
$603.04 |
$400.49 |
| Fair Value Estimate |
$331.67 |
$396.15 |
| Upside to Fair Value |
-45.0%
|
-1.1%
|
| Market Cap |
$478.8B |
$1,504.1B |
| Forward P/E |
56.4x
|
334.1x
|
| EV / EBITDA |
43.0x
|
124.0x
|
| Price / Sales |
16.5x
|
15.4x
|
| Price / FCF |
80.3x
|
214.9x
|
| Revenue Growth YoY |
+11.4%
|
+15.8%
|
| Gross Margin |
49.0%
|
19.1%
|
| Operating Margin |
29.5%
|
5.0%
|
| Return on Equity |
39.8%
|
4.8%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.25%
|
0.47%
|
| Analyst Consensus |
Strong Buy
|
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…
Tesla, Inc. is a leading global electric vehicle manufacturer and energy solutions provider, led by CEO Elon Musk since 2008. The company maintains a strong position in the EV market with a unique fast-charging and software ecosystem, although its EV market share is declining amid intensifying competition. Tesla's business quality is medium due to its narrowing moat and modest profitability, with…
Accumulation Zones
| Metric |
AMAT |
TSLA |
| Zone Low |
$248.75 |
$297.11 |
| Zone High |
$281.92 |
$336.73 |
| In Buy Zone? |
No
|
No
|