Quick verdict: AMAT vs APH in 2026

In this head-to-head comparison, Applied Materials (AMAT) appears to hold a slight overall edge based on a majority of comparable metrics and analyst preference, securing 6 wins to Amphenol Corporation’s (APH) 5 wins in our detailed scorecard. APH stands out as the clear growth leader with significantly higher revenue growth, while AMAT asserts itself as the value and margin leader with a lower P/E ratio and superior net and EBITDA margins. Despite AMAT garnering stronger analyst sentiment, APH offers a greater potential price target upside according to current consensus. This is not investment advice.

AMAT vs APH: key metrics side by side

Full side-by-side comparison of AMAT and APH across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-17.

AMAT vs APH valuation comparison

When considering the AMAT vs APH valuation, Applied Materials (AMAT) presents a slightly lower trailing twelve-month Price-to-Earnings (P/E) ratio of 39.44x compared to Amphenol Corporation’s (APH) 42.75x. This metric typically suggests AMAT is trading at a more favorable valuation relative to its earnings. However, a deeper dive into other valuation multiples shows a more nuanced picture. AMAT has a Price-to-Book (P/B) ratio of 14.24x, which is slightly higher than APH’s 13.61x, suggesting APH might be slightly more attractive from an asset-based valuation perspective.

The Discounted Cash Flow (DCF) analysis, a critical component of any valuation comparison, paints a particularly stark difference. AMAT’s DCF upside is reported at a significantly negative -196.8%, indicating substantial overvaluation based on its projected future cash flows. In contrast, APH’s DCF upside is also negative, but considerably less so at -42.7%. While both suggest a current overvaluation according to this model, APH appears to be less stretched. Therefore, while AMAT has a lower P/E, APH’s less negative DCF indicates it is less overvalued, making the determination of which is ‘cheaper’ depend on the investor’s preferred valuation model. Both stocks currently command high multiples, characteristic of companies in the technology sector.

AMAT vs APH growth comparison

In terms of growth, Amphenol Corporation (APH) demonstrates significantly stronger momentum, reporting a year-over-year revenue growth rate of an impressive +51.7%. This figure positions APH as a clear leader in expansion within this amat vs aph stock comparison 2026. Applied Materials (AMAT), while a larger company by revenue at $28.37B compared to APH’s $23.09B, posted a more modest revenue growth of +4.4% over the same period. This vast difference in top-line expansion indicates that APH is currently undergoing a period of rapid market penetration or benefiting from strong secular tailwinds more acutely than AMAT.

While AMAT’s growth is more tempered, its scale in the semiconductor equipment industry provides a solid foundation. Investors focusing on high-growth opportunities would likely find APH more appealing due to its aggressive revenue expansion. The forward estimates, though not explicitly detailed here beyond revenue growth, would likely reflect APH’s strong recent performance. This robust growth often comes with higher investor expectations, which can be reflected in its valuation multiples, as seen with APH’s slightly higher P/E. Sustained high growth for APH could potentially lead to further market share gains and long-term value creation.

AMAT vs APH profitability

When analyzing the AMAT vs APH fundamentals, Applied Materials (AMAT) stands out as the more profitable enterprise based on its robust margin performance. AMAT boasts a superior net margin of 27.78%, significantly higher than Amphenol Corporation’s (APH) 18.49%. This indicates that for every dollar of revenue, AMAT retains a much larger portion as profit. Furthermore, AMAT also leads in operational efficiency with an EBITDA margin of 35.04%, exceeding APH’s 29.84%. These higher margins suggest that AMAT has better cost control, stronger pricing power, or a more favorable product mix within its industry.

Despite AMAT’s superior margins, the Free Cash Flow (FCF) yield tells a slightly different story regarding cash generation efficiency relative to market capitalization. APH exhibits a slightly higher FCF yield of 2.39% compared to AMAT’s 2.0%. While the difference is not vast, it indicates that APH generates a fractionally more free cash flow per dollar of market value. Both companies have an N/A% reported for Return on Equity (ROE), preventing a direct comparison on that specific metric. Overall, AMAT appears to be more efficient at turning revenue into profit, but APH generates a slightly better cash flow return for shareholders, highlighting different aspects of financial strength.

Analyst ratings: AMAT vs APH

Analyst sentiment heavily leans towards Applied Materials (AMAT) in this amat vs aph stock comparison 2026, with a significantly higher percentage of analysts issuing ‘Buy’ ratings. Of the 53 analysts covering AMAT, a strong 79.3% recommend it as a ‘Buy’, reflecting substantial confidence in its future performance. The consensus price target for AMAT is $426.39, suggesting a potential upside of +9.4% from its current price of $389.90. This strong endorsement from a larger group of analysts often signals robust company fundamentals and a positive market outlook for the semiconductor equipment giant.

Amphenol Corporation (APH) also receives a ‘Buy’ consensus rating, but with a less enthusiastic backing from analysts. Out of the 29 analysts covering APH, 51.7% have a ‘Buy’ rating. While still a majority, it indicates a more divided opinion compared to AMAT. However, APH’s consensus price target of $176.88 offers a higher potential upside of +18.7% from its current price of $148.96. This larger projected upside for APH suggests that while fewer analysts are strongly bullish, those who are see greater room for appreciation. Therefore, while AMAT is the clear analyst favorite in terms of buy percentage, APH is forecasted to have greater price appreciation.

Should I buy AMAT or APH stock in 2026?

Deciding whether to buy AMAT or APH stock in 2026 depends heavily on your investment priorities. For growth-oriented investors seeking strong top-line expansion, Amphenol Corporation (APH) presents a compelling case with its exceptional year-over-year revenue growth of +51.7%. This aggressive growth indicates strong market demand for its products and potential for continued expansion, making it an attractive option for those prioritizing rapid growth over other factors. AMAT’s more moderate +4.4% growth, while respectable for its size, doesn’t match APH’s current momentum.

For value investors meticulously examining amat vs aph fundamentals and valuation, the picture is complex. Applied Materials (AMAT) holds a slightly lower P/E ratio of 39.44x compared to APH’s 42.75x, which traditionally suggests a better entry point from an earnings multiple perspective. However, the deeply negative DCF upside for AMAT at -196.8% versus APH’s -42.7% suggests that APH, despite its higher P/E, is considered significantly less overvalued by discounted cash flow models. Investors should weigh which valuation metric aligns best with their investment philosophy when considering which stock is the better “value” play.

Regarding income investors, neither AMAT nor APH are particularly strong dividend plays. AMAT currently offers a 0.0% dividend yield, meaning it does not distribute a portion of its earnings to shareholders in this form. APH, on the other hand, provides a negligible dividend yield of 0.01%, which, while technically higher than AMAT’s, offers very little in the way of income generation. Therefore, investors primarily focused on generating regular income from their portfolios would likely find both stocks unsuitable for their needs. This is not investment advice; please conduct your own thorough research.

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