Quick verdict: AMAT vs CSCO in 2026

Overall, Cisco Systems (CSCO) appears to have a distinct edge over Applied Materials (AMAT) in this comprehensive stock comparison, securing more wins across the key metrics analyzed. CSCO emerges as the growth leader with higher revenue growth, while also standing out as the value leader due to more attractive valuation multiples. Conversely, AMAT demonstrates superior profitability with stronger net and EBITDA margins, and garners a higher percentage of “Buy” ratings from analysts. CSCO, however, offers greater analyst-projected upside and a significantly better Discounted Cash Flow (DCF) valuation. Not investment advice.

AMAT vs CSCO: key metrics side by side

Full side-by-side comparison of AMAT and CSCO across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-15.

AMAT vs CSCO valuation comparison

When considering the AMAT vs CSCO valuation, Cisco Systems (CSCO) presents a more attractive profile. Applied Materials (AMAT) trades at a significantly higher P/E ratio of 39.06x, indicating a premium valuation compared to CSCO’s P/E of 28.96x. This differential suggests that the market assigns a higher growth expectation or quality premium to AMAT, or that CSCO is simply trading at a more reasonable earnings multiple. Similarly, the Price-to-Book (P/B) ratio further reinforces CSCO’s value proposition, standing at 6.72x against AMAT’s considerably higher 14.1x. This indicates that investors pay significantly less per unit of book value for CSCO shares.

The Discounted Cash Flow (DCF) analysis also strongly favors CSCO in the AMAT vs CSCO valuation comparison. Applied Materials has a troubling DCF upside of -198.2%, implying that its current stock price is substantially overvalued based on its future cash flow projections. In contrast, Cisco Systems, while also showing a negative DCF upside, is much less severely discounted at -23.4%. This suggests that CSCO’s current market price is closer to its intrinsic value compared to AMAT. For value-oriented investors, CSCO appears to offer a more compelling entry point with lower valuation multiples and a more favorable DCF assessment as of 2026.

AMAT vs CSCO growth comparison

In the AMAT vs CSCO growth comparison, Cisco Systems (CSCO) exhibits slightly stronger recent top-line momentum. CSCO reported a year-over-year revenue growth of +5.3%, outperforming Applied Materials (AMAT), which posted a +4.4% revenue growth. While both companies are experiencing positive growth, CSCO’s higher rate indicates a marginally stronger current expansion in its market segments. This suggests that CSCO has been able to capture greater market share or benefit more from industry trends over the past year, reflecting stronger overall momentum.

Despite CSCO’s lead in revenue growth, AMAT demonstrates superior operational efficiency in terms of margins. Applied Materials boasts a Net Margin of 27.78% and an EBITDA Margin of 35.04%. These figures significantly surpass Cisco Systems’ Net Margin of 18.76% and EBITDA Margin of 28.79%. This indicates that while CSCO is growing revenue faster, AMAT is more adept at converting its sales into profit, reflecting better cost control or higher-value product offerings in the specialized semiconductor equipment sector. Investors focused purely on top-line expansion might favor CSCO, but those prioritizing robust underlying profitability from existing revenue streams would find AMAT more appealing.

AMAT vs CSCO profitability

Examining the AMAT vs CSCO profitability metrics reveals a mixed picture, with Applied Materials (AMAT) demonstrating superior operational margins while Cisco Systems (CSCO) shows better free cash flow generation relative to its market capitalization. AMAT’s Net Margin stands at an impressive 27.78%, significantly higher than CSCO’s 18.76%. This indicates that for every dollar of revenue, Applied Materials retains a larger portion as net income. Similarly, AMAT’s EBITDA margin of 35.04% also comfortably exceeds CSCO’s 28.79%, reinforcing AMAT’s efficiency in managing operating expenses and generating earnings before interest, taxes, depreciation, and amortization. Unfortunately, the Return on Equity (ROE) for both companies is listed as N/A%, preventing a direct comparison of how effectively each firm utilizes shareholder equity to generate profits.

However, when it comes to Free Cash Flow (FCF) yield, Cisco Systems takes the lead, indicating stronger cash generation capabilities relative to its stock price. CSCO has an FCF yield of 4.01%, which is nearly double that of AMAT’s 2.02%. A higher FCF yield suggests that CSCO is more efficient at generating cash from its operations after accounting for capital expenditures, offering potentially greater flexibility for dividends, share buybacks, or debt reduction. Therefore, while AMAT excels in turning revenue into accounting profits, CSCO demonstrates a stronger ability to convert those profits into tangible cash flow, a crucial aspect for long-term financial health and investor returns, highlighting a key difference in their operational models.

Analyst ratings: AMAT vs CSCO

Regarding analyst sentiment for AMAT vs CSCO, Applied Materials (AMAT) garners a more bullish consensus based on the percentage of “Buy” ratings. Out of 53 analysts covering AMAT, a substantial 79.3% recommend it as a “Buy,” leading to an overall “Buy” consensus. The average price target for AMAT is set at $426.39, implying a +10.4% upside from its current price of $386.1699. This high conviction among analysts suggests a strong belief in AMAT’s future performance and its strategic position within the semiconductor equipment industry, reflecting a high level of confidence in the company’s prospects.

Cisco Systems (CSCO), while also having an overall “Buy” consensus, shows a lower percentage of “Buy” ratings compared to AMAT. Among 72 analysts, 51.4% recommend CSCO as a “Buy.” However, CSCO presents a more attractive potential upside according to the consensus price target. Analysts project a target price of $96.5 for CSCO, which represents a more significant +19.0% upside from its current price of $81.115. This indicates that while fewer analysts are outright bullish on CSCO, those who are see a greater potential for price appreciation compared to AMAT. This makes CSCO more appealing for investors seeking higher short-to-medium term capital gains as of 2026, despite a lower overall “Buy” percentage.

Should I buy AMAT or CSCO stock in 2026?

The decision of whether to buy AMAT or CSCO stock in 2026 depends heavily on an investor’s specific objectives and risk tolerance. For growth-oriented investors, Cisco Systems (CSCO) might present a slightly more compelling case. While both companies operate in the technology sector, CSCO demonstrated a higher year-over-year revenue growth rate of 5.3% compared to AMAT’s 4.4%. This marginal lead in top-line expansion, coupled with a higher analyst-projected price target upside of +19.0%, suggests that CSCO could offer stronger momentum for capital appreciation if these trends continue. Applied Materials, on the other hand, boasts superior net and EBITDA margins, indicating a highly efficient business model despite its slower recent revenue growth.

Value investors evaluating AMAT vs CSCO fundamentals and valuation will likely find Cisco Systems more attractive. CSCO trades at a lower P/E ratio of 28.96x and a significantly lower P/B ratio of 6.72x, making it considerably cheaper than AMAT, which trades at a P/E of 39.06x and a P/B of 14.1x. Furthermore, CSCO’s Discounted Cash Flow (DCF) upside of -23.4% is far more favorable than AMAT’s deeply negative -198.2%, suggesting CSCO is closer to its intrinsic value. These valuation metrics point to CSCO offering a more favorable risk-reward balance for investors seeking undervalued or fairly valued assets, making it potentially a better option for those prioritizing value in their investment strategy.

For income-focused investors, neither Applied Materials nor Cisco Systems stands out as a primary dividend play, but CSCO does offer a nominal yield. AMAT currently has a dividend yield of 0.0%, indicating no dividend distribution, whereas CSCO offers a modest 0.02%. While this yield is minimal, it still technically positions CSCO as the sole option for those prioritizing any form of dividend income in their amat vs csco stock comparison 2026. Ultimately, the choice between AMAT and CSCO hinges on whether you prioritize AMAT’s robust profitability and strong analyst conviction or CSCO’s better valuation, slightly higher growth momentum, and greater projected upside. This is not investment advice.

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FAQ: AMAT vs CSCO