Quick verdict: AMAT vs KLAC in 2026

Overall, Applied Materials (AMAT) appears to hold a slight edge over KLA Corporation (KLAC) in this 2026 comparison, largely driven by more attractive valuation metrics and stronger analyst sentiment. While KLAC demonstrates superior revenue growth and higher profitability margins, AMAT offers a more compelling entry point for value-conscious investors. Ultimately, the choice between AMAT and KLAC hinges on an investor’s specific priorities regarding growth versus valuation and analyst confidence. Not investment advice.

AMAT vs KLAC: key metrics side by side

Full side-by-side comparison of AMAT and KLAC across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-03.

AMAT vs KLAC valuation comparison

Comparing AMAT vs KLAC valuation in 2026 reveals Applied Materials (AMAT) as the more attractively priced option based on traditional multiples. AMAT trades at a P/E ratio of 39.36x, significantly lower than KLAC’s P/E of 48.38x. This suggests that investors are paying less for each dollar of AMAT’s earnings compared to KLAC, indicating a better relative value in the market. Furthermore, AMAT’s P/B ratio stands at 14.21x, which is considerably more appealing than KLAC’s elevated P/B of 38.76x, especially for investors looking at asset-backed value within the technology sector.

When considering the Discounted Cash Flow (DCF) analysis, both companies show negative upsides, signaling that current market prices are substantially above their intrinsic values as per these models. AMAT’s DCF upside is calculated at -195.2%, while KLAC’s is -62.1%. Although both are negative, KLAC’s valuation appears less stretched by the DCF model, despite its higher P/E and P/B ratios. However, for a direct comparison on traditional valuation multiples like P/E and P/B, AMAT is distinctly cheaper, making it a stronger candidate for value investors assessing AMAT vs KLAC fundamentals and valuation.

AMAT vs KLAC growth comparison

In terms of growth, KLA Corporation (KLAC) exhibits significantly stronger momentum when comparing AMAT vs KLAC stock comparison 2026. KLAC reported an impressive year-over-year revenue growth of 23.9%, dwarfing Applied Materials’ (AMAT) revenue growth of 4.4%. This substantial difference in top-line expansion indicates that KLAC is currently capturing a larger share of market growth or benefiting more aggressively from industry tailwinds, particularly in its specialized metrology and inspection segments of semiconductor manufacturing.

Despite AMAT having a larger absolute revenue of $28.37B compared to KLAC’s $12.16B, KLAC’s superior growth rate points to its capacity for rapid expansion and its agile positioning within specific high-demand niches. This robust growth, coupled with KLAC’s higher profitability margins discussed below, suggests that the company is not only expanding rapidly but also doing so efficiently. For investors prioritizing companies with robust and accelerating revenue expansion, KLAC presents a more compelling growth narrative in this amat vs klac stock comparison 2026.

AMAT vs KLAC profitability

Examining AMAT vs KLAC profitability reveals KLA Corporation (KLAC) as the more efficient operator in several key areas. KLAC boasts a net margin of 35.66%, notably higher than AMAT’s 27.78%. This indicates that KLAC is better at converting its revenue into actual profit, suggesting superior operational efficiency, potentially stronger pricing power, or a more favorable cost structure within its market segments compared to Applied Materials. Similarly, KLAC’s EBITDA margin of 45.06% significantly outperforms AMAT’s 35.04%, further underscoring KLAC’s higher operating profitability before interest, taxes, depreciation, and amortization.

When it comes to return on equity (ROE), both companies currently report N/A%, so this metric cannot be used for direct comparison. However, in terms of free cash flow generation, AMAT holds a slight edge with a FCF yield of 2.01% compared to KLAC’s 1.77%. While KLAC demonstrates stronger profitability at the margin level, AMAT’s higher FCF yield suggests it converts a slightly larger portion of its value into free cash for shareholders, which is an important consideration for direct cash generation capabilities. Overall, KLAC leads in core margin metrics, indicating a more profitable business model per dollar of revenue.

Analyst ratings: AMAT vs KLAC

Analyzing the analyst ratings for AMAT vs KLAC in 2026 reveals a distinct preference for Applied Materials among the investment community. AMAT is covered by 53 analysts, with a strong 79.3% consensus recommending a “Buy” rating. Their average target price for AMAT is $426.39, implying a potential upside of +9.6% from its current price of $389.08. This high conviction from a large analyst pool suggests significant confidence in AMAT’s future performance and its ability to reach higher valuations, indicating a positive outlook from Wall Street.

In contrast, KLA Corporation (KLAC) has slightly fewer analysts covering it, with 44 professionals, and a lower “Buy” rating percentage of 63.6%. While still indicating a positive outlook and a “Buy” consensus, it’s less enthusiastic than AMAT’s. KLAC’s consensus target price stands at $1819.38, offering a more modest potential upside of +5.4% from its current price of $1726.26. Given these metrics, analysts clearly favor AMAT, both in terms of the sheer percentage of buy recommendations and the projected price target upside, making AMAT the analyst favorite in this amat vs klac stock comparison 2026.

Should I buy AMAT or KLAC stock in 2026?

Deciding whether should I buy AMAT or KLAC stock in 2026 depends heavily on your investment priorities and risk tolerance. For growth-oriented investors, KLA Corporation (KLAC) presents a compelling case. Its remarkable year-over-year revenue growth of 23.9% significantly outpaces AMAT’s 4.4%, indicating stronger momentum and a faster expanding business in the highly dynamic semiconductor equipment sector. Furthermore, KLAC’s superior net margin of 35.66% and EBITDA margin of 45.06% suggest it’s not just growing fast, but also doing so very profitably, translating top-line expansion into robust earnings.

Conversely, for value investors or those sensitive to current pricing, Applied Materials (AMAT) appears to be the more attractive option based on its valuation metrics. AMAT trades at a lower P/E ratio of 39.36x compared to KLAC’s 48.38x, and its P/B ratio of 14.21x is substantially more favorable than KLAC’s 38.76x. These valuation metrics suggest that AMAT offers a better entry point, particularly when considering AMAT vs KLAC fundamentals and valuation from a cost perspective. Additionally, a higher percentage of analysts (79.3%) recommend AMAT as a “Buy” with a more optimistic price target upside of +9.6%, indicating stronger consensus and potential near-term appreciation.

When considering income, neither AMAT nor KLAC are ideal choices for dividend-seeking investors, as both companies currently have a dividend yield of 0.0%. Both are growth-focused technology companies that primarily reinvest their earnings back into the business for future expansion rather than distributing them as dividends. Therefore, the decision between AMAT and KLAC should be based on a careful balance between KLAC’s superior growth and profitability margins versus AMAT’s more appealing valuation and stronger analyst conviction. This is not investment advice; always conduct your own thorough research.

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FAQ: AMAT vs KLAC