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 business? We will compare the two companies based on the strength of their dividends, community ranking, risk, analyst recommendations, media sentiment, earnings, valuation, profitability and institutional ownership.

Do insiders & institutionals believe in AMAT or LRCX?

80.6% of Applied Materials shares are owned by institutional investors. Comparatively, 84.6% of Lam Research shares are owned by institutional investors. 0.3% of Applied Materials shares are owned by insiders. Comparatively, 0.3% of Lam Research shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Does the media favor AMAT or LRCX?

In the previous week, Applied Materials had 19 more articles in the media than Lam Research. MarketBeat recorded 35 mentions for Applied Materials and 16 mentions for Lam Research. Applied Materials' average media sentiment score of 1.24 beat Lam Research's score of 0.99 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	22 Very Positive mention(s)	2 Positive mention(s)	7 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Lam Research	9 Very Positive mention(s)	3 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more volatility & risk, 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.

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 0.9%. Lam Research pays an annual dividend of $0.92 per share and has a dividend yield of 1.2%. 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.

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%

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%

Do analysts prefer AMAT or LRCX?

Applied Materials currently has a consensus target price of $220.29, suggesting a potential upside of 29.31%. Lam Research has a consensus target price of $97.24, suggesting a potential upside of 24.82%. Given Applied Materials' higher possible upside, equities research analysts clearly believe Applied Materials is more favorable than Lam Research.

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

Which has stronger 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	5.17	$7.18B	$8.61	19.79
Lam Research	$15.59B	6.43	$3.83B	$3.09	25.21

Summary

Applied Materials beats Lam Research on 11 of the 19 factors compared between the two stocks.