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

Do analysts recommend AMAT or LRCX?

Applied Materials currently has a consensus target price of $200.76, suggesting a potential upside of 5.66%. Lam Research has a consensus target price of $94.20, suggesting a potential downside of 4.68%. Given Applied Materials' higher probable upside, 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	0 Sell rating(s)	6 Hold rating(s)	16 Buy rating(s)	0 Strong Buy rating(s)	2.73
Lam Research	0 Sell rating(s)	6 Hold rating(s)	17 Buy rating(s)	1 Strong Buy rating(s)	2.79

Which has more risk and volatility, AMAT or LRCX?

Applied Materials has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500. Comparatively, Lam Research has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.

Does the media refer more to AMAT or LRCX?

In the previous week, Lam Research had 4 more articles in the media than Applied Materials. MarketBeat recorded 47 mentions for Lam Research and 43 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 news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Applied Materials	31 Very Positive mention(s)	3 Positive mention(s)	6 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
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

Is AMAT or LRCX 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
Applied Materials	24.06%	40.15%	22.42%
Lam Research	27.18%	53.21%	24.07%

Which has preferable 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	5.61	$7.18B	$8.22	23.12
Lam Research	$14.91B	8.48	$3.83B	$3.59	27.53

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 1.0%. Lam Research pays an annual dividend of $0.92 per share and has a dividend yield of 0.9%. Applied Materials pays out 22.4% 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. Applied Materials has increased its dividend for 8 consecutive years and Lam Research has increased its dividend for 10 consecutive years. Applied Materials is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do insiders & institutionals have more ownership in 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 company insiders. Comparatively, 0.3% of Lam Research shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

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