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 2026-09-24.
Applied Materials, Inc. · Technology
$474.38
-3.5% upside to fair value
Med Conviction
Grade C
High Quality
VS
United Parcel Service, Inc. · Industrials
$99.02
+21.1% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
UPS has more upside to fair value
(+21.1%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
UPS |
| Current Price |
$474.38 |
$99.02 |
| Fair Value Estimate |
$457.95 |
$119.92 |
| Upside to Fair Value |
-3.5%
|
+21.1%
|
| Market Cap |
$376.6B |
$84.1B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.1x
|
10.2x
|
| Price / Sales |
12.2x
|
0.9x
|
| Price / FCF |
67.0x
|
15.3x
|
| Revenue Growth YoY |
+24.8%
|
+7.6%
|
| Gross Margin |
49.4%
|
16.6%
|
| Operating Margin |
30.5%
|
7.3%
|
| Return on Equity |
40.4%
|
29.1%
|
| Dividend Yield |
0.42% |
6.62% |
| FCF Yield |
1.49%
|
6.52%
|
| Analyst Consensus |
Strong Buy
|
Hold
|
Investment Thesis
Applied Materials is the largest supplier of wafer fabrication equipment, providing deposition, etch, ion implantation, and process-control tools alongside a growing Applied Global Services aftermarket business to semiconductor manufacturers worldwide. The business quality is high: TTM gross margin of 49.4%, TTM operating margin of 30.5%, TTM net margin of 30.1%, and ROE of 40.4% reflect a durabl…
United Parcel Service is the world's largest integrated package delivery and logistics network, operating U.S. Domestic Package and International Package segments with roughly 460,000 employees and a 119-year operating history. The business quality is medium: the global air-and-ground network, brand, and scale are genuine assets, but the company is exposed to commoditized freight, Amazon volume c…
Accumulation Zones
| Metric |
AMAT |
UPS |
| Zone Low |
$343.46 |
$89.94 |
| Zone High |
$389.26 |
$101.93 |
| In Buy Zone? |
No
|
Yes
|