Lam Research (LRCX) Competitors

Applied Materials (NASDAQ:AMAT) and Lam Research (NASDAQ:LRCX) are both large-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their media sentiment, risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Does the media favor AMAT or LRCX?

In the previous week, Lam Research had 48 more articles in the media than Applied Materials. MarketBeat recorded 103 mentions for Lam Research and 55 mentions for Applied Materials. Applied Materials' average media sentiment score of 1.33 beat Lam Research's score of 0.97 indicating that Applied Materials is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Applied Materials	46 Very Positive mention(s)	2 Positive mention(s)	4 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Positive
Lam Research	39 Very Positive mention(s)	12 Positive mention(s)	22 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk and volatility, AMAT or LRCX?

Applied Materials has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500. Comparatively, Lam Research has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500.

Do analysts recommend AMAT or LRCX?

Applied Materials currently has a consensus target price of $209.15, suggesting a potential downside of 8.45%. Lam Research has a consensus target price of $144.85, suggesting a potential downside of 1.82%. Given Lam Research's stronger consensus rating and higher probable upside, analysts clearly believe Lam Research is more favorable than Applied Materials.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Materials	1 Sell rating(s)	12 Hold rating(s)	18 Buy rating(s)	0 Strong Buy rating(s)	2.55
Lam Research	0 Sell rating(s)	7 Hold rating(s)	26 Buy rating(s)	1 Strong Buy rating(s)	2.82

Is AMAT or LRCX a better dividend stock?

Applied Materials pays an annual dividend of $1.84 per share and has a dividend yield of 0.8%. Lam Research pays an annual dividend of $1.04 per share and has a dividend yield of 0.7%. Applied Materials pays out 21.9% of its earnings in the form of a dividend. Lam Research pays out 22.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Applied Materials has raised its dividend for 8 consecutive years and Lam Research has raised its dividend for 10 consecutive years. Applied Materials is clearly the better dividend stock, given its higher yield and lower payout ratio.

Is AMAT or LRCX more profitable?

Lam Research has a net margin of 29.66% compared to Applied Materials' net margin of 23.88%. Lam Research's return on equity of 61.89% beat Applied Materials' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Applied Materials	23.88%	40.96%	22.99%
Lam Research	29.66%	61.89%	28.52%

Which has stronger valuation and earnings, AMAT or LRCX?

Applied Materials has higher revenue and earnings than Lam Research. Applied Materials is trading at a lower price-to-earnings ratio than Lam Research, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Materials	$27.18B	6.70	$7.18B	$8.39	27.23
Lam Research	$19.59B	9.50	$5.36B	$4.54	32.50

Do insiders and institutionals hold more shares of AMAT or LRCX?

80.6% of Applied Materials shares are held by institutional investors. Comparatively, 84.6% of Lam Research shares are held by institutional investors. 0.2% of Applied Materials shares are held by insiders. Comparatively, 0.3% of Lam Research shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Lam Research beats Applied Materials on 14 of the 20 factors compared between the two stocks.