LRCX vs. AMAT, KLAC, ENTG, ONTO, MKSI, AMKR, FORM, ACLS, AEIS, and VECO
Should you be buying Lam Research stock or one of its competitors? The main competitors of Lam Research include Applied Materials (AMAT), KLA (KLAC), Entegris (ENTG), Onto Innovation (ONTO), MKS Instruments (MKSI), Amkor Technology (AMKR), FormFactor (FORM), Axcelis Technologies (ACLS), Advanced Energy Industries (AEIS), and Veeco Instruments (VECO). These companies are all part of the "semiconductor equipment" industry.
Lam Research (NASDAQ:LRCX) and Applied Materials (NASDAQ:AMAT) are both large-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, media sentiment, community ranking, dividends, institutional ownership, analyst recommendations, earnings and valuation.
Lam Research pays an annual dividend of $8.00 per share and has a dividend yield of 0.8%. Applied Materials pays an annual dividend of $1.60 per share and has a dividend yield of 0.7%. Lam Research pays out 29.4% of its earnings in the form of a dividend. Applied Materials pays out 18.4% 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.
84.6% of Lam Research shares are owned by institutional investors. Comparatively, 80.6% of Applied Materials shares are owned by institutional investors. 0.3% of Lam Research shares are owned by insiders. Comparatively, 0.3% of Applied Materials shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
In the previous week, Applied Materials had 22 more articles in the media than Lam Research. MarketBeat recorded 31 mentions for Applied Materials and 9 mentions for Lam Research. Applied Materials' average media sentiment score of 0.79 beat Lam Research's score of 0.60 indicating that Applied Materials is being referred to more favorably in the news media.
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.
Lam Research currently has a consensus price target of $964.86, indicating a potential downside of 6.62%. Applied Materials has a consensus price target of $219.04, indicating a potential downside of 7.36%. Given Lam Research's higher possible upside, equities research analysts clearly believe Lam Research is more favorable than Applied Materials.
Lam Research has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Applied Materials has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.
Applied Materials has a net margin of 27.57% compared to Lam Research's net margin of 25.35%. Lam Research's return on equity of 45.96% beat Applied Materials' return on equity.
Applied Materials received 502 more outperform votes than Lam Research when rated by MarketBeat users. However, 76.39% of users gave Lam Research an outperform vote while only 72.09% of users gave Applied Materials an outperform vote.
Summary
Applied Materials beats Lam Research on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding LRCX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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