Applied Materials (AMAT) Competitors

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

Is AMAT or LRCX more profitable?

Applied Materials has a net margin of 26.41% compared to Lam Research's net margin of 26.02%. Lam Research's return on equity of 50.60% beat Applied Materials' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Applied Materials	26.41%	39.26%	21.92%
Lam Research	26.02%	50.60%	22.33%

Is AMAT or LRCX a better dividend stock?

Applied Materials pays an annual dividend of $1.60 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 1.3%. Applied Materials pays out 18.6% of its earnings in the form of a dividend. Lam Research pays out 29.8% 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.

Does the media refer more to AMAT or LRCX?

In the previous week, Applied Materials had 6 more articles in the media than Lam Research. MarketBeat recorded 19 mentions for Applied Materials and 13 mentions for Lam Research. Applied Materials' average media sentiment score of 0.71 beat Lam Research's score of 0.57 indicating that Applied Materials is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Applied Materials	9 Very Positive mention(s)	2 Positive mention(s)	4 Neutral mention(s)	4 Negative mention(s)	0 Very Negative mention(s)	Positive
Lam Research	5 Very Positive mention(s)	2 Positive mention(s)	5 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has better earnings & valuation, 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	4.90	$7.18B	$8.61	19.00
Lam Research	$15.59B	5.92	$3.83B	$3.09	23.23

Which has more risk & volatility, AMAT or LRCX?

Applied Materials has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, Lam Research has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Do insiders and institutionals believe 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. 0.3% 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 hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Do analysts recommend AMAT or LRCX?

Applied Materials currently has a consensus price target of $220.29, suggesting a potential upside of 34.66%. Lam Research has a consensus price target of $97.24, suggesting a potential upside of 35.45%. Given Lam Research's stronger consensus rating and higher possible upside, analysts plainly believe Lam Research is more favorable than Applied Materials.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Materials	1 Sell rating(s)	6 Hold rating(s)	15 Buy rating(s)	0 Strong Buy rating(s)	2.64
Lam Research	0 Sell rating(s)	7 Hold rating(s)	13 Buy rating(s)	0 Strong Buy rating(s)	2.65

Does the MarketBeat Community believe in AMAT or LRCX?

Applied Materials received 512 more outperform votes than Lam Research when rated by MarketBeat users. However, 75.85% of users gave Lam Research an outperform vote while only 71.95% of users gave Applied Materials an outperform vote.

Company	Underperform	Outperform
Applied Materials	Outperform Votes 1916 71.95%	Underperform Votes 747 28.05%
Lam Research	Outperform Votes 1404 75.85%	Underperform Votes 447 24.15%

Summary

Applied Materials beats Lam Research on 10 of the 19 factors compared between the two stocks.