Lam Research (LRCX) Competitors

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

Which has more risk and volatility, LRCX or AMAT?

Lam Research has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500. Comparatively, Applied Materials has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500.

Is LRCX or AMAT a better dividend stock?

Lam Research pays an annual dividend of $0.92 per share and has a dividend yield of 0.9%. Applied Materials pays an annual dividend of $1.84 per share and has a dividend yield of 1.2%. Lam Research pays out 22.1% of its earnings in the form of a dividend. Applied Materials pays out 21.9% 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. Lam Research has increased its dividend for 10 consecutive years and Applied Materials has increased its dividend for 8 consecutive years. Applied Materials is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do analysts rate LRCX or AMAT?

Lam Research presently has a consensus price target of $107.22, indicating a potential upside of 10.50%. Applied Materials has a consensus price target of $193.88, indicating a potential upside of 23.05%. Given Applied Materials' higher possible upside, analysts plainly believe Applied Materials is more favorable than Lam Research.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lam Research	1 Sell rating(s)	6 Hold rating(s)	20 Buy rating(s)	0 Strong Buy rating(s)	2.70
Applied Materials	1 Sell rating(s)	13 Hold rating(s)	17 Buy rating(s)	0 Strong Buy rating(s)	2.52

Is LRCX or AMAT more profitable?

Lam Research has a net margin of 29.07% compared to Applied Materials' net margin of 23.88%. Lam Research's return on equity of 58.17% beat Applied Materials' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Lam Research	29.07%	58.17%	26.42%
Applied Materials	23.88%	40.96%	22.99%

Does the media refer more to LRCX or AMAT?

In the previous week, Lam Research had 7 more articles in the media than Applied Materials. MarketBeat recorded 51 mentions for Lam Research and 44 mentions for Applied Materials. Lam Research's average media sentiment score of 1.44 beat Applied Materials' score of 1.41 indicating that Lam Research is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Lam Research	40 Very Positive mention(s)	0 Positive mention(s)	6 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Positive
Applied Materials	36 Very Positive mention(s)	2 Positive mention(s)	5 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

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

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

Which has higher valuation & earnings, LRCX or AMAT?

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
Lam Research	$18.44B	6.66	$5.36B	$4.16	23.32
Applied Materials	$27.18B	4.62	$7.18B	$8.39	18.78

Summary

Lam Research beats Applied Materials on 12 of the 19 factors compared between the two stocks.