Quick verdict: AMAT vs META in 2026

Based on a thorough analysis of their fundamental and valuation metrics, Meta Platforms (META) currently holds a significant overall edge compared to Applied Materials (AMAT). META stands out as the clear growth leader with substantially higher revenue expansion, while also presenting a more appealing valuation profile. It further leads in profitability with superior margins, and analysts show a slightly stronger consensus and higher upside potential for META. Not investment advice.

AMAT vs META: key metrics side by side

Full side-by-side comparison of AMAT and META across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-30.

AMAT vs META valuation comparison

A key aspect of the AMAT vs META stock comparison 2026 is their respective valuations. Applied Materials (AMAT) trades at a P/E ratio of 38.7x and a P/B ratio of 13.97x. These metrics suggest a relatively premium valuation for a company operating in the cyclical semiconductor equipment industry. In contrast, Meta Platforms (META), despite its significantly larger market capitalization, boasts a lower P/E ratio of 24.02x and a P/B ratio of 6.96x, making it appear more reasonably priced relative to its current earnings and book value.

Further examining the AMAT vs META valuation, their Discounted Cash Flow (DCF) models present interesting insights. AMAT’s DCF analysis indicates a substantial overvaluation of -196.4%, implying that its current stock price is significantly higher than its intrinsic value based on projected future cash flows. META also shows a negative DCF upside of -59.7%, suggesting it too is trading above its calculated intrinsic value, but the extent of this overvaluation is considerably less severe than AMAT’s. This reinforces the idea that META offers a comparatively more attractive entry point from a valuation perspective, even if both stocks are considered overvalued by this specific model.

AMAT vs META growth comparison

When assessing the growth prospects for AMAT vs META, Meta Platforms (META) clearly demonstrates stronger momentum. META reported an impressive revenue growth of +22.2% year-over-year, showcasing its ability to expand its top line robustly, largely driven by its dominant social media platforms and continued investment in its Reality Labs segment. Applied Materials (AMAT), a critical supplier to the semiconductor industry, posted a more modest revenue growth of +4.4%. While this growth is respectable given the cyclical nature of its market, it significantly lags META’s expansion rate.

The disparity in revenue growth highlights fundamental differences in their business models and market dynamics. META operates in the rapidly evolving digital advertising and emerging metaverse space, offering substantial opportunities for scale and user base expansion. Its massive revenue base of $200.97 billion, growing at 22.2%, underscores its capacity to capture market share and innovate. AMAT’s $28.37 billion revenue is tied to capital expenditures in chip manufacturing, which can be subject to broader macroeconomic and industry-specific cycles. For investors prioritizing high growth, particularly in a dynamic environment, META’s profile appears to offer stronger momentum.

AMAT vs META profitability

In terms of profitability, Meta Platforms (META) exhibits superior performance compared to Applied Materials (AMAT). META reported a net margin of 32.84% and an EBITDA margin of 52.77%. These strong margins underscore META’s efficiency in converting revenue into profit, reflecting powerful operational leverage, a strong competitive moat in its core advertising business, and effective cost management. In contrast, AMAT’s net margin stands at 27.78% and its EBITDA margin at 35.04%. While these are solid figures, they are notably lower than META’s, indicating that META generally generates more profit from each dollar of revenue.

Furthermore, analyzing the free cash flow (FCF) yield provides insight into how much cash each company generates relative to its market capitalization. META’s FCF yield is 2.85%, which is higher than AMAT’s 2.04%. This suggests that Meta Platforms is more effective at generating free cash, which is crucial for reinvestment, debt repayment, or potential shareholder returns. Both companies have an “N/A%” reported for Return on Equity (ROE) in the provided data, precluding a direct comparison on that specific metric. However, based on the available data regarding net margins, EBITDA margins, and FCF yield, META clearly demonstrates a stronger overall profitability profile, indicating it generates more cash and profit from its operations.

Analyst ratings: AMAT vs META

Examining the analyst ratings provides valuable external perspective on the AMAT vs META stock comparison 2026. Both Applied Materials and Meta Platforms enjoy strong support from the analyst community, with a consensus “Buy” rating for each stock. However, Meta Platforms slightly edges out AMAT in terms of the percentage of analysts recommending a “Buy,” with 83.3% of the 60 analysts covering META giving it a “Buy” rating. AMAT, meanwhile, has 79.3% “Buy” ratings from its pool of 53 analysts. This indicates a marginally higher conviction among experts for META’s future performance.

More significantly, the consensus price targets reveal a considerable difference in potential upside. Analysts project a price target of $426.39 for AMAT, representing an +11.4% upside from its current price of $382.59. For META, the consensus target is a more optimistic $827.33, which translates to a substantial +23.6% upside from its current price of $669.12. This suggests that analysts not only prefer META slightly more often but also foresee greater potential for stock appreciation. For investors considering should I buy AMAT or META stock in 2026, the analyst community clearly leans towards META for higher growth potential.

Should I buy AMAT or META stock in 2026?

For investors prioritizing aggressive growth in 2026, Meta Platforms (META) presents a compelling argument. Its remarkable 22.2% year-over-year revenue growth significantly outpaces Applied Materials’ (AMAT) 4.4%, demonstrating stronger momentum and market capture. Furthermore, META boasts superior net and EBITDA margins, along with a higher free cash flow yield, indicating robust operational performance and strong future potential across its core advertising business and ambitious metaverse ventures. Growth-oriented portfolios would likely find META a more fitting addition due to its higher growth trajectory and greater profitability efficiency.

When it comes to value investing, particularly for those analyzing AMAT vs META fundamentals and valuation, META appears to offer a comparatively more attractive entry point. With a P/E ratio of 24.02x and a P/B ratio of 6.96x, META is priced more favorably relative to its earnings and book value than AMAT, which trades at 38.7x P/E and 13.97x P/B. Although both stocks show negative DCF upsides, META’s -59.7% indicates a less severe overvaluation compared to AMAT’s -196.4%, suggesting better relative value despite both being considered overvalued by this metric.

For income-focused investors, neither AMAT nor META are suitable options as both currently offer a 0.0% dividend yield. Both companies are focused on reinvesting their substantial earnings back into their respective businesses to fuel future growth and innovation rather than distributing them as dividends to shareholders. Therefore, if generating regular income from your investments is a primary concern, investors should explore other opportunities. This is not investment advice; please conduct your own thorough research and consult with a financial professional before making any investment decisions.

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FAQ: AMAT vs META