Quick verdict: AMAT vs ANET in 2026

In this comprehensive AMAT vs ANET stock comparison 2026, Arista Networks (ANET) shows a stronger overall edge, demonstrating superior growth and profitability metrics. Applied Materials (AMAT) appears to be the leader on traditional valuation metrics, offering a comparatively lower P/E and P/B ratio. ANET stands out as the clear growth and margin leader, while AMAT garners a slightly higher percentage of ‘Buy’ ratings from analysts, though ANET presents significantly greater potential price target upside. Not investment advice.

AMAT vs ANET: key metrics side by side

Full side-by-side comparison of AMAT and ANET across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-16.

AMAT vs ANET valuation comparison

When considering AMAT vs ANET fundamentals and valuation, Applied Materials (AMAT) appears to be the more ‘affordable’ option based on traditional valuation multiples. AMAT trades at a P/E ratio of 39.88x, which is lower than ANET’s P/E of 55.28x. Similarly, AMAT’s Price-to-Book (P/B) ratio stands at 14.4x, slightly below ANET’s 15.69x. These metrics suggest that investors are paying a higher premium for ANET’s earnings and assets compared to AMAT, reflecting ANET’s higher growth expectations within the technology sector as of 2026.

However, a deeper look into the discounted cash flow (DCF) models reveals an interesting nuance in the AMAT vs ANET valuation 2026. Both companies show negative DCF upsides, indicating that their current stock prices might be above their intrinsic values according to this specific model. AMAT presents a significantly more negative DCF upside of -195.7%, whereas ANET’s DCF upside is -51.0%. While both suggest overvaluation, ANET’s calculated overvaluation is less extreme. This indicates that while AMAT’s P/E and P/B ratios are lower, its future cash flow projections, as assessed by this DCF model, are less favorable relative to its current price than ANET’s. Therefore, on traditional multiples, AMAT is cheaper, but ANET’s DCF suggests a slightly less pronounced degree of overvaluation within this context, appealing to investors who weigh future cash flow potential.

AMAT vs ANET growth comparison

In terms of growth, Arista Networks (ANET) demonstrates significantly stronger momentum compared to Applied Materials (AMAT), a key factor in any AMAT vs ANET stock comparison 2026. ANET reported an impressive year-over-year revenue growth of +28.6%, indicating robust expansion in its market segment. This substantial growth rate is a key factor attracting investors seeking high-growth opportunities within the technology sector, particularly in cloud networking and data center solutions. ANET’s continuous innovation and market penetration drive its revenue upwards, reflecting strong demand and effective execution in its operational strategies.

Conversely, Applied Materials (AMAT), a leading supplier of equipment to the semiconductor industry, posted a more modest revenue growth of +4.4% year-over-year. While still positive, this rate suggests a more mature growth phase or reflects the cyclical nature of the semiconductor equipment market, which can experience periods of slower expansion. ANET’s superior revenue growth is further supported by its higher profitability margins; its net margin of 38.99% and EBITDA margin of 43.62% surpass AMAT’s 27.78% net margin and 35.04% EBITDA margin. These higher margins, coupled with rapid revenue expansion, firmly position ANET as the clear leader in growth potential and operational efficiency based on current reported figures, indicating stronger momentum in its business trajectory.

AMAT vs ANET profitability

Examining the profitability metrics for AMAT vs ANET fundamentals and valuation, Arista Networks (ANET) exhibits superior performance in generating profits from its operations. ANET boasts a net margin of 38.99%, significantly higher than Applied Materials’ (AMAT) net margin of 27.78%. This indicates that ANET is more efficient at converting its revenue into actual profit for shareholders, suggesting better cost management, a higher-value product/service offering, or a less capital-intensive business model. Furthermore, ANET’s EBITDA margin stands at an impressive 43.62%, outperforming AMAT’s 35.04%, reinforcing its stronger operational profitability before interest, taxes, depreciation, and amortization.

While Return on Equity (ROE) data is not available for either company at this time, the Free Cash Flow (FCF) yield provides further insight into their cash-generating abilities. ANET records a slightly higher FCF yield of 2.19% compared to AMAT’s 1.98%. Although the difference is minor, it suggests that ANET is marginally more effective at converting its revenue into free cash flow, which is crucial for future investments, debt reduction, or potential shareholder returns. Moreover, ANET operates with zero debt-to-equity (0x), highlighting a very strong and conservative balance sheet compared to AMAT’s 0.33x. Overall, ANET clearly generates more cash and demonstrates higher efficiency in its profit generation, making it the more profitable company between the two.

Analyst ratings: AMAT vs ANET

When analyzing analyst sentiment for AMAT vs ANET stock comparison 2026, both companies receive a consensus “Buy” rating, indicating generally positive outlooks from the investment community. Applied Materials (AMAT) currently has a higher percentage of ‘Buy’ ratings among analysts, with 79.3% of 53 analysts recommending a buy. The consensus price target for AMAT is $426.39, which suggests an +8.1% upside from its current price of $394.26. This indicates a solid, albeit moderate, expected appreciation according to the collective view of analysts covering the stock.

Arista Networks (ANET) also has a strong analyst endorsement, with 74.5% of 51 analysts recommending a ‘Buy’ rating. While slightly lower in percentage compared to AMAT, ANET offers a significantly higher implied upside to its consensus price target. Analysts project a target price of $184.38 for ANET, representing a substantial +19.5% upside from its current price of $154.33. This suggests that while AMAT might be more universally liked in terms of the sheer percentage of ‘Buy’ recommendations, analysts see greater growth potential and upward movement in ANET’s stock price, aligning with its stronger revenue growth and profitability metrics. Therefore, analysts prefer AMAT slightly in terms of consensus ‘Buy’ percentage, but ANET for potential price target upside, suggesting it might be the preferred choice for those seeking higher capital appreciation.

Should I buy AMAT or ANET stock in 2026?

Deciding should I buy AMAT or ANET stock in 2026 largely depends on your investment strategy and risk tolerance. For growth-oriented investors, Arista Networks (ANET) appears to be the more compelling choice. Its remarkable year-over-year revenue growth of +28.6% vastly outpaces Applied Materials’ (AMAT) +4.4%. This strong top-line expansion, coupled with superior net margins (38.99% for ANET vs. 27.78% for AMAT) and a robust balance sheet with 0x debt/equity, positions ANET as a leader in its market with significant momentum. If you prioritize rapid expansion and higher profitability, ANET’s profile suggests a greater potential for capital appreciation, especially given its higher analyst price target upside of +19.5%.

For value investors, Applied Materials (AMAT) might present a more attractive entry point, though it’s important to acknowledge that both stocks trade at elevated valuations in the current market. AMAT’s P/E ratio of 39.88x and P/B ratio of 14.4x are both lower than ANET’s P/E of 55.28x and P/B of 15.69x. This indicates that AMAT is relatively cheaper on a per-earnings and per-book-value basis, appealing to investors looking for growth at a relatively more reasonable price. While both companies show negative DCF upsides, AMAT’s significantly more negative figure (-195.7% vs. ANET’s -51.0%) suggests that even at its “cheaper” valuation multiples, its intrinsic value according to this model is still deeply challenged by its current market price. However, for those seeking exposure to the semiconductor equipment industry at a comparatively lower multiple within the technology sector, AMAT could be considered for its foundational role in semiconductor manufacturing.

Regarding income, neither AMAT nor ANET are suitable for investors seeking dividend income. Both companies currently have a dividend yield of 0.0%, indicating that they reinvest all their earnings back into the business for growth rather than distributing them to shareholders. Therefore, if regular income generation is a primary investment objective, you would need to look elsewhere. Ultimately, the choice between AMAT and ANET hinges on whether you prioritize ANET’s high growth and superior profitability despite its higher valuation, or AMAT’s comparatively lower valuation within a more mature, yet essential, industry segment, alongside its slightly higher analyst buy rating percentage. This is not investment advice; please conduct your own thorough research and consider your individual financial goals and risk tolerance.

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