LRCX vs. AMAT, KLAC, ENTG, ONTO, MKSI, AMKR, FORM, AEIS, ACLS, 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), Advanced Energy Industries (AEIS), Axcelis Technologies (ACLS), and Veeco Instruments (VECO). These companies are all part of the "semiconductor equipment" industry.
Applied Materials (NASDAQ:AMAT) and Lam Research (NASDAQ:LRCX) are both large-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, community ranking, profitability, valuation, analyst recommendations, media sentiment, risk and earnings.
Applied Materials received 504 more outperform votes than Lam Research when rated by MarketBeat users. However, 76.44% of users gave Lam Research an outperform vote while only 72.11% of users gave Applied Materials an outperform vote.
Applied Materials pays an annual dividend of $1.60 per share and has a dividend yield of 0.7%. Lam Research pays an annual dividend of $8.00 per share and has a dividend yield of 0.9%. Applied Materials pays out 18.4% of its earnings in the form of a dividend. Lam Research pays out 29.4% 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. Applied Materials has increased its dividend for 7 consecutive years and Lam Research has increased its dividend for 9 consecutive years. Lam Research is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
In the previous week, Applied Materials had 17 more articles in the media than Lam Research. MarketBeat recorded 25 mentions for Applied Materials and 8 mentions for Lam Research. Lam Research's average media sentiment score of 0.75 beat Applied Materials' score of 0.50 indicating that Applied Materials is being referred to more favorably in the media.
Applied Materials has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, Lam Research has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.
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.
Applied Materials has a net margin of 27.57% compared to Applied Materials' net margin of 25.35%. Applied Materials' return on equity of 45.96% beat Lam Research's return on equity.
Applied Materials currently has a consensus target price of $215.64, suggesting a potential upside of 0.26%. Lam Research has a consensus target price of $957.95, suggesting a potential upside of 2.74%. Given Applied Materials' stronger consensus rating and higher possible upside, analysts plainly believe Lam Research is more favorable than Applied Materials.
80.6% of Applied Materials shares are held by institutional investors. Comparatively, 84.6% of Lam Research shares are held by institutional investors. 0.3% of Applied Materials shares are held by insiders. Comparatively, 0.3% of Lam Research shares are held by 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.
Summary
Lam Research beats Applied Materials on 11 of the 21 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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