Quick verdict: AMAT vs META in 2026

Overall, Meta Platforms (META) appears to have a stronger edge in this 2026 comparison, dominating across key growth and profitability metrics. META emerges as the clear growth leader with substantially higher revenue expansion and superior operating margins. While Applied Materials (AMAT) offers a slightly lower P/E multiple and a higher dividend yield, META garners stronger analyst conviction and significantly higher projected upside. This is 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 2026-03-27.

AMAT vs META valuation comparison

Comparing the AMAT vs META valuation metrics reveals some interesting contrasts. Applied Materials (AMAT) currently trades at a P/E ratio of 26.58x, which is slightly lower than Meta Platforms’ (META) P/E ratio of 27.52x. This might suggest AMAT is marginally cheaper on an earnings multiple basis. However, when looking at the price-to-book (P/B) ratio, META presents a more attractive figure at 7.66x compared to AMAT’s 9.11x, indicating that META’s assets are valued more efficiently by the market relative to its share price.

Furthermore, the Discounted Cash Flow (DCF) analysis provides a stark difference in intrinsic value estimations. AMAT’s DCF shows a substantial negative upside of -209.2%, suggesting the stock is significantly overvalued based on its projected future cash flows. In contrast, META’s DCF upside, while still negative, is a much less severe -49.1%. This implies that while both stocks may be considered richly valued by this model, META is perceived to be closer to its intrinsic value than AMAT. Therefore, despite AMAT’s slightly lower P/E, META appears to offer a better overall valuation proposition when considering P/B and the more favorable DCF outlook.

AMAT vs META growth comparison

When evaluating AMAT vs META growth, Meta Platforms demonstrably exhibits stronger momentum. META reported an impressive year-over-year revenue growth of +22.2%, significantly outpacing Applied Materials, which registered a +4.4% revenue growth. This substantial difference highlights META’s robust expansion in its core advertising business and strategic investments, while AMAT’s growth reflects the more cyclical nature of the semiconductor equipment industry. META’s ability to scale its operations and increase its top line at such a rate positions it as a compelling choice for growth-oriented investors.

Beyond top-line expansion, META also demonstrates superior operational efficiency underpinning its growth. With a net margin of 30.08% and an EBITDA margin of 52.02%, META converts a much larger portion of its revenue into profit compared to AMAT’s net margin of 24.67% and EBITDA margin of 34.02%. These higher margins suggest that META’s growth is not just about revenue expansion but also about efficient scaling and strong pricing power. Forward estimates, implicitly reflected in analyst price targets and DCF analyses, further reinforce META’s stronger growth trajectory and potential for significant returns, making it the clear leader in this growth comparison.

AMAT vs META profitability

Analyzing AMAT vs META profitability reveals Meta Platforms as the more efficient and profitable enterprise. META boasts a net margin of 30.08%, outperforming AMAT’s 24.67%. This indicates that for every dollar of revenue, META retains a larger portion as net income, showcasing superior cost management and pricing power within its business model. Furthermore, META’s EBITDA margin of 52.02% significantly eclipses AMAT’s 34.02%, reflecting greater operational efficiency before accounting for depreciation, amortization, interest, and taxes.

In terms of cash generation, META also holds an edge, as evidenced by its Free Cash Flow (FCF) yield of 3.34% compared to AMAT’s 2.31%. A higher FCF yield indicates that META generates more cash relative to its market capitalization, providing greater flexibility for reinvestment, debt reduction, or shareholder returns. While Return on Equity (ROE) data is not available for either company, the comprehensive view across net margin, EBITDA margin, and FCF yield firmly establishes META as the more profitable and cash-generative entity, capable of turning its substantial revenue into solid financial returns for investors.

Analyst ratings: AMAT vs META

The analyst community shows a strong “Buy” consensus for both Applied Materials (AMAT) and Meta Platforms (META), but with a noticeable preference for META. Out of 53 analysts covering AMAT, 79.3% recommend a “Buy” rating. Their consensus price target for AMAT stands at $420.83, suggesting a potential upside of +24.3% from its current price of $338.55. This indicates a positive outlook for AMAT, reflecting confidence in its position within the semiconductor equipment sector and its future prospects.

However, Meta Platforms garners even stronger analyst conviction. With 60 analysts providing coverage, a higher percentage of 83.3% recommend a “Buy” for META. More strikingly, the consensus price target for META is $853, which implies a substantial upside of +55.8% from its current price of $547.54. This significantly higher projected return suggests that analysts view META with greater optimism regarding its future growth, profitability, and potential for stock appreciation. Therefore, while both stocks are well-regarded, analysts clearly prefer META for its stronger growth potential and anticipated returns.

Should I buy AMAT or META stock in 2026?

For investors prioritizing strong top-line expansion and operational leverage, Meta Platforms (META) presents a more compelling opportunity in 2026. META’s impressive +22.2% year-over-year revenue growth far outpaces AMAT’s +4.4%, demonstrating a more dynamic business with significant market penetration and expansion capabilities. Furthermore, META’s superior net margin of 30.08% and EBITDA margin of 52.02% indicate that this growth is highly profitable and efficiently managed. Analysts also foresee greater upside for META, with a consensus target predicting a +55.8% increase, making it the preferred choice for those seeking high-growth technology exposure.

The question of which stock offers better value is nuanced. Applied Materials (AMAT) trades at a slightly lower P/E ratio of 26.58x compared to META’s 27.52x, which might appeal to traditional value investors looking for a marginally cheaper earnings multiple. AMAT also boasts a slightly lower Debt-to-Equity ratio of 0.35x against META’s 0.39x, indicating a slightly healthier balance sheet. However, META offers a lower P/B ratio of 7.66x (versus AMAT’s 9.11x) and a significantly less negative Discounted Cash Flow (DCF) upside of -49.1% (compared to AMAT’s -209.2%). This suggests that while AMAT might appear cheaper on one metric, META’s overall valuation profile, particularly its P/B and better intrinsic value indication from DCF, could argue for a more favorable long-term value proposition when considering its growth potential.

For investors focused on dividend income, Applied Materials (AMAT) stands out. AMAT currently offers a dividend yield of 0.74%, which is more than double that of Meta Platforms (META) at 0.32%. While neither stock is a high-yield dividend play, AMAT provides a more substantial income stream for shareholders, making it the better option for those seeking even modest regular returns from their equity investments. It’s crucial to remember that this analysis is for informational purposes only and is not investment advice. Always conduct your own thorough research before making any investment decisions.

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FAQ: AMAT vs META