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 companies based on the strength of their community ranking, institutional ownership, dividends, valuation, media sentiment, earnings, risk, analyst recommendations and profitability.

Do analysts rate AMAT or LRCX?

Applied Materials presently has a consensus target price of $208.86, suggesting a potential upside of 40.21%. Lam Research has a consensus target price of $91.56, suggesting a potential upside of 27.64%. Given Applied Materials' higher probable upside, equities research analysts plainly believe Applied Materials is more favorable than Lam Research.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Materials	1 Sell rating(s)	5 Hold rating(s)	17 Buy rating(s)	0 Strong Buy rating(s)	2.70
Lam Research	0 Sell rating(s)	6 Hold rating(s)	18 Buy rating(s)	1 Strong Buy rating(s)	2.80

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 1.2%. Lam Research pays an annual dividend of $0.92 per share and has a dividend yield of 1.3%. Applied Materials pays out 24.1% of its earnings in the form of a dividend. Lam Research pays out 25.6% 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.

Does the MarketBeat Community believe in AMAT or LRCX?

Applied Materials received 502 more outperform votes than Lam Research when rated by MarketBeat users. However, 75.81% of users gave Lam Research an outperform vote while only 71.97% of users gave Applied Materials an outperform vote.

Company	Underperform	Outperform
Applied Materials	Outperform Votes 1928 71.97%	Underperform Votes 751 28.03%
Lam Research	Outperform Votes 1426 75.81%	Underperform Votes 455 24.19%

Is AMAT or LRCX more profitable?

Lam Research has a net margin of 26.49% compared to Applied Materials' net margin of 22.95%. Lam Research's return on equity of 51.86% beat Applied Materials' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Applied Materials	22.95%	39.50%	22.12%
Lam Research	26.49%	51.86%	22.97%

Does the media refer more to AMAT or LRCX?

In the previous week, Lam Research had 33 more articles in the media than Applied Materials. MarketBeat recorded 70 mentions for Lam Research and 37 mentions for Applied Materials. Applied Materials' average media sentiment score of 1.25 beat Lam Research's score of 1.05 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	32 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Lam Research	40 Very Positive mention(s)	7 Positive mention(s)	10 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has stronger earnings & valuation, 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	$27.64B	4.38	$7.18B	$7.65	19.47
Lam Research	$17.14B	5.35	$3.83B	$3.59	19.98

Do institutionals & insiders have more ownership in AMAT or LRCX?

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

Which has more volatility and risk, AMAT or LRCX?

Applied Materials has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, Lam Research has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.

Summary

Lam Research beats Applied Materials on 13 of the 21 factors compared between the two stocks.