Applied Materials Inc (AMAT)vsLam Research Corp (LRCX)
AMAT
Applied Materials Inc
$319.25
+4.22%
TECHNOLOGY · Cap: $309.57B
LRCX
Lam Research Corp
$200.44
+8.23%
TECHNOLOGY · Cap: $299.23B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 18% more annual revenue ($30.84B vs $26.13B). LRCX leads profitability with a 32.3% profit margin vs 30.0%. AMAT appears more attractively valued with a PEG of 0.83. LRCX earns a higher WallStSmart Score of 78/100 (B+).
AMAT
Strong Buy78
out of 100
Grade: B+
LRCX
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AMAT.
Margin of Safety
+39.2%
Fair Value
$393.39
Current Price
$200.44
$192.95 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 36 in profit
Keeps 30 of every $100 in revenue as profit
Strong operational efficiency at 33.7%
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Mega-cap, among the largest globally
Every $100 of equity generates 61 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 40.0%
Revenue surging 54.4% year-over-year
Earnings expanding 76.6% YoY
Areas to Watch
Premium valuation, high expectations priced in
Trading at 9.9x book value
Premium valuation, high expectations priced in
Trading at 18.0x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : AMAT
The strongest argument for AMAT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 30.0% and operating margin at 33.7%. Revenue growth of 24.8% demonstrates continued momentum.
Bull Case : LRCX
The strongest argument for LRCX centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 32.3% and operating margin at 40.0%. Revenue growth of 54.4% demonstrates continued momentum.
Bear Case : AMAT
The primary concerns for AMAT are P/E Ratio, Price/Book.
Bear Case : LRCX
The primary concerns for LRCX are P/E Ratio, Price/Book.
Key Dynamics to Monitor
LRCX carries more volatility with a beta of 1.85 — expect wider price swings.
LRCX is growing revenue faster at 54.4% — sustainability is the question.
LRCX generates stronger free cash flow (3.2B), providing more financial flexibility.
Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AMAT scores higher overall (78/100 vs 78/100), backed by strong 30.0% margins and 24.8% revenue growth. LRCX offers better value entry with a 39.2% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Applied Materials Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Applied Materials, Inc. is an American corporation that supplies equipment, services and software for the manufacture of semiconductor (integrated circuit) chips for electronics, flat panel displays for computers, smartphones and televisions, and solar products. The company also supplies equipment to produce coatings for flexible electronics, packaging and other applications. The company is headquartered in Santa Clara, California, in Silicon Valley.
Visit Website →Lam Research Corp
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Lam Research Corporation is an American corporation that engages in the design, manufacture, marketing, and service of semiconductor processing equipment used in the fabrication of integrated circuits. Its products are used primarily in front-end wafer processing, which involves the steps that create the active components of semiconductor devices (transistors, capacitors) and their wiring (interconnects). The company also builds equipment for back-end wafer-level packaging (WLP), and for related manufacturing markets such as for microelectromechanical systems (MEMS). The company is headquartered in Fremont, California, in the Silicon Valley.
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