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 better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, media sentiment, dividends, earnings and risk.

Which has more volatility & risk, LRCX or AMAT?

Lam Research has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, Applied Materials has a beta of 1.69, indicating that its stock price is 69% 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 1.0%. Lam Research pays out 25.6% of its earnings in the form of a dividend. Applied Materials pays out 22.4% 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 recommend LRCX or AMAT?

Lam Research currently has a consensus price target of $94.20, indicating a potential downside of 4.68%. Applied Materials has a consensus price target of $200.76, indicating a potential upside of 5.66%. Given Applied Materials' higher possible upside, analysts clearly believe Applied Materials is more favorable than Lam Research.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lam Research	0 Sell rating(s)	6 Hold rating(s)	17 Buy rating(s)	1 Strong Buy rating(s)	2.79
Applied Materials	0 Sell rating(s)	6 Hold rating(s)	16 Buy rating(s)	0 Strong Buy rating(s)	2.73

Is LRCX or AMAT more profitable?

Lam Research has a net margin of 27.18% compared to Applied Materials' net margin of 24.06%. Lam Research's return on equity of 53.21% beat Applied Materials' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Lam Research	27.18%	53.21%	24.07%
Applied Materials	24.06%	40.15%	22.42%

Do insiders & institutionals have more ownership in 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 insiders. Comparatively, 0.2% of Applied Materials shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

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 47 mentions for Lam Research and 40 mentions for Applied Materials. Lam Research's average media sentiment score of 1.39 beat Applied Materials' score of 1.29 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)	2 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Applied Materials	30 Very Positive mention(s)	3 Positive mention(s)	5 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has preferable earnings & valuation, 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	$14.91B	8.48	$3.83B	$3.59	27.53
Applied Materials	$27.18B	5.61	$7.18B	$8.22	23.12

Summary

Lam Research beats Applied Materials on 13 of the 20 factors compared between the two stocks.