AMAT vs UPS: Which Is the Better Buy?

Side-by-side comparison of Applied Materials, Inc. and United Parcel Service, 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
United Parcel Service, Inc. · Industrials
$105.00
+12.9% upside to fair value
Grade B
QuantHub Verdict
UPS has more upside to fair value (+12.9%). UPS trades at a lower forward P/E (17.0x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric AMAT UPS
Current Price $603.04 $105.00
Fair Value Estimate $331.67 $118.53
Upside to Fair Value -45.0% +12.9%
Market Cap $478.8B $89.2B
Forward P/E 56.4x 17.0x
EV / EBITDA 43.0x 9.6x
Price / Sales 16.5x 1.0x
Price / FCF 80.3x 19.8x
Revenue Growth YoY +11.4% -1.6%
Gross Margin 49.0% 17.8%
Operating Margin 29.5% 8.5%
Return on Equity 39.8% 33.0%
Dividend Yield 0% 0%
FCF Yield 1.25% 5.06%
Analyst Consensus Strong Buy Buy
Investment Thesis
AMAT — Applied Materials, Inc.
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…
UPS — United Parcel Service, Inc.
United Parcel Service, Inc. operates as a global integrated freight and logistics company with a strong presence in U.S. domestic package delivery, international package services, and supply chain solutions. The company benefits from a durable competitive moat supported by its extensive network capabilities, premium service positioning, and strategic focus on higher-margin segments such as health…
Accumulation Zones
Metric AMAT UPS
Zone Low $248.75 $88.90
Zone High $281.92 $100.75
In Buy Zone? No No
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