AMAT vs XOM: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Exxon Mobil Corporation — 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
Exxon Mobil Corporation · Energy
$154.46
-40.5% upside to fair value
Grade C
QuantHub Verdict
AMAT has more upside to fair value
(-12.0%).
XOM trades at a lower forward P/E
(23.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
XOM |
| Current Price |
$406.91 |
$154.46 |
| Fair Value Estimate |
$358.00 |
$91.87 |
| Upside to Fair Value |
-12.0%
|
-40.5%
|
| Market Cap |
$322.9B |
$642.0B |
| Forward P/E |
30.3x
|
23.2x
|
| EV / EBITDA |
30.2x
|
10.3x
|
| Price / Sales |
10.2x
|
2.0x
|
| Price / FCF |
51.6x
|
27.2x
|
| Revenue Growth YoY |
+11.0%
|
-1.3%
|
| Gross Margin |
49.9%
|
21.7%
|
| Operating Margin |
31.9%
|
10.5%
|
| Return on Equity |
47.0%
|
11.0%
|
| Dividend Yield |
0.45% |
0% |
| FCF Yield |
1.94%
|
3.68%
|
| Analyst Consensus |
Strong Buy
|
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 …
Exxon Mobil Corporation operates as a global integrated oil and gas company with significant operations in upstream, energy products, chemical products, and specialty products segments. The company benefits from a highly experienced management team with decades of internal tenure, led by CEO Darren Woods. Despite strong cash flow generation and operational scale, Exxon is currently overvalued, tr…
Accumulation Zones
| Metric |
AMAT |
XOM |
| Zone Low |
$268.50 |
$68.90 |
| Zone High |
$304.30 |
$78.09 |
| In Buy Zone? |
No
|
No
|