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AMAT vs LRCX

AMAT
Applied Materials, Inc.
NEUTRAL
Price
$341.79
Market Cap
$271.25B
Sector
Technology
AI Confidence
80%
LRCX
Lam Research Corporation
NEUTRAL
Price
$258.37
Market Cap
$324.52B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AMAT
35.02
LRCX
54.05
Forward P/E
AMAT
24.69
LRCX
36.1
P/B Ratio
AMAT
12.49
LRCX
31.86
P/S Ratio
AMAT
9.61
LRCX
15.78
EV/EBITDA
AMAT
30.37
LRCX
43.7

Profitability

Gross Margin
AMAT
48.72%
LRCX
49.8%
Operating Margin
AMAT
29.89%
LRCX
33.87%
Profit Margin
AMAT
27.78%
LRCX
30.22%
ROE
AMAT
38.86%
LRCX
65.56%
ROA
AMAT
14.85%
LRCX
21.05%

Growth

Revenue Growth
AMAT
-2.1%
LRCX
22.1%
Earnings Growth
AMAT
75.2%
LRCX
37.0%

Financial Health

Debt/Equity
AMAT
0.33
LRCX
0.44
Current Ratio
AMAT
2.71
LRCX
2.26
Quick Ratio
AMAT
1.74
LRCX
1.56

Dividends

Dividend Yield
AMAT
0.66%
LRCX
0.4%
Payout Ratio
AMAT
18.26%
LRCX
20.12%

AI Verdict

AMAT NEUTRAL

AMAT shows neutral fundamentals based on deterministic rules. Financial strength is strong (F-Score 9/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (27.8% margin)
Strong financial trend (Piotroski F-Score: 9/9)
Low debt with D/E ratio of 0.33
Risks
High valuation with P/E of 35.0
Premium vs Graham Number ($77.52)
Declining revenue (-2.1%)
LRCX NEUTRAL

LRCX presents a dichotomy between operational excellence and valuation extremes. The Piotroski F-Score of 4/9 indicates stable financial health, but the stock is trading at a massive premium to its Graham Number ($29.53) and Intrinsic Value ($141.01). While the company boasts an exceptional ROE of 65.56% and a stellar 25-quarter earnings beat record, the technical trend (10/100) and bearish insider activity ($29.66M in sales) suggest the current price may be overextended. The company is a high-quality compounder currently priced for perfection.

Strengths
Exceptional profitability with ROE at 65.56% and Operating Margin at 33.87%
Consistent earnings track record with beats in nearly all of the last 25 quarters
Strong growth trajectory with 37% YoY earnings growth and 22.1% revenue growth
Risks
Severe valuation stretch with a P/B of 31.86 and P/S of 15.78
Bearish insider sentiment, specifically significant selling by the CFO and Directors
Highly bearish technical trend (10/100) indicating potential momentum reversal

Compare Another Pair

AMAT vs LRCX: Head-to-Head Comparison

This page compares Applied Materials, Inc. (AMAT) and Lam Research Corporation (LRCX) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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