AMAT vs UNH: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and UnitedHealth Group Incorporated — 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
UnitedHealth Group Incorporated · Healthcare
$353.52
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
UNH has more upside to fair value
(+45.0%).
UNH trades at a lower forward P/E
(26.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
UNH |
| Current Price |
$406.91 |
$353.52 |
| Fair Value Estimate |
$358.00 |
$512.60 |
| Upside to Fair Value |
-12.0%
|
+45.0%
|
| Market Cap |
$322.9B |
$320.9B |
| Forward P/E |
30.3x
|
26.7x
|
| EV / EBITDA |
30.2x
|
16.1x
|
| Price / Sales |
10.2x
|
0.7x
|
| Price / FCF |
51.6x
|
16.3x
|
| Revenue Growth YoY |
+11.0%
|
+2.0%
|
| Gross Margin |
49.9%
|
18.8%
|
| Operating Margin |
31.9%
|
4.2%
|
| Return on Equity |
47.0%
|
12.4%
|
| Dividend Yield |
0.45% |
0% |
| FCF Yield |
1.94%
|
6.13%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
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 …
UnitedHealth Group Incorporated operates as a leading healthcare company with two main platforms: UnitedHealthcare, providing health benefits coverage, and Optum, offering information and technology services. The company benefits from a durable competitive moat due to its scale, integrated platforms, and broad market reach serving over 170 million consumers. Despite strong revenue growth of 12% y…
Accumulation Zones
| Metric |
AMAT |
UNH |
| Zone Low |
$268.50 |
$384.45 |
| Zone High |
$304.30 |
$435.71 |
| In Buy Zone? |
No
|
Yes
|