Applied Materials (AMAT) Competitors

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

Does the media prefer LRCX or AMAT?

In the previous week, Lam Research had 19 more articles in the media than Applied Materials. MarketBeat recorded 53 mentions for Lam Research and 34 mentions for Applied Materials. Lam Research's average media sentiment score of 1.47 beat Applied Materials' score of 1.27 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	47 Very Positive mention(s)	0 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Positive
Applied Materials	28 Very Positive mention(s)	0 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Positive

Is LRCX or AMAT more profitable?

Lam Research has a net margin of 26.49% compared to Applied Materials' net margin of 22.95%. Lam Research's return on equity of 51.86% beat Applied Materials' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Lam Research	26.49%	51.86%	22.97%
Applied Materials	22.95%	39.50%	22.12%

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 1.6%. Applied Materials pays an annual dividend of $1.84 per share and has a dividend yield of 1.4%. Lam Research pays out 28.0% of its earnings in the form of a dividend. Applied Materials pays out 24.1% 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.

Do analysts prefer LRCX or AMAT?

Lam Research currently has a consensus target price of $97.59, suggesting a potential upside of 65.15%. Applied Materials has a consensus target price of $214.67, suggesting a potential upside of 69.10%. 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	0 Sell rating(s)	5 Hold rating(s)	18 Buy rating(s)	0 Strong Buy rating(s)	2.78
Applied Materials	1 Sell rating(s)	5 Hold rating(s)	17 Buy rating(s)	0 Strong Buy rating(s)	2.70

Does the MarketBeat Community believe in LRCX or AMAT?

Applied Materials received 510 more outperform votes than Lam Research when rated by MarketBeat users. However, 75.83% of users gave Lam Research an outperform vote while only 71.96% of users gave Applied Materials an outperform vote.

Company	Underperform	Outperform
Lam Research	Outperform Votes 1415 75.83%	Underperform Votes 451 24.17%
Applied Materials	Outperform Votes 1925 71.96%	Underperform Votes 750 28.04%

Which has stronger earnings and 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	$16.21B	4.68	$3.83B	$3.29	17.96
Applied Materials	$27.64B	3.73	$7.18B	$7.65	16.59

Which has more risk and volatility, LRCX or AMAT?

Lam Research has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Applied Materials has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500.

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

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, 0.2% of Applied Materials shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

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