Applied Materials Inc (AMAT)vsLam Research Corp (LRCX)
AMAT
Applied Materials Inc
$389.08
+0.59%
TECHNOLOGY · Cap: $313.07B
LRCX
Lam Research Corp
$256.72
+0.72%
TECHNOLOGY · Cap: $311.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Applied Materials Inc generates 30% more annual revenue ($28.21B vs $21.68B). LRCX leads profitability with a 30.9% profit margin vs 27.8%. LRCX appears more attractively valued with a PEG of 1.49. LRCX earns a higher WallStSmart Score of 76/100 (B+).
AMAT
Buy64
out of 100
Grade: C+
LRCX
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AMAT.
Margin of Safety
+25.3%
Fair Value
$343.70
Current Price
$256.72
$86.98 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 39 in profit
Earnings expanding 75.2% YoY
Safe zone — low bankruptcy risk
Keeps 28 of every $100 in revenue as profit
Strong operational efficiency at 29.9%
Mega-cap, among the largest globally
Every $100 of equity generates 67 in profit
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 35.0%
Safe zone — low bankruptcy risk
Revenue surging 23.8% year-over-year
Areas to Watch
Expensive relative to growth rate
Trading at 14.2x book value
Premium valuation, high expectations priced in
Revenue declined 2.1%
Premium valuation, high expectations priced in
Trading at 31.7x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : AMAT
The strongest argument for AMAT centers on Market Cap, Return on Equity, EPS Growth. Profitability is solid with margins at 27.8% and operating margin at 29.9%.
Bull Case : LRCX
The strongest argument for LRCX centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 30.9% and operating margin at 35.0%. Revenue growth of 23.8% demonstrates continued momentum.
Bear Case : AMAT
The primary concerns for AMAT are PEG Ratio, Price/Book, P/E Ratio. A P/E of 40.4x leaves little room for execution misses.
Bear Case : LRCX
The primary concerns for LRCX are P/E Ratio, Price/Book. A P/E of 46.9x leaves little room for execution misses.
Key Dynamics to Monitor
AMAT profiles as a declining stock while LRCX is a growth play — different risk/reward profiles.
LRCX carries more volatility with a beta of 1.79 — expect wider price swings.
LRCX is growing revenue faster at 23.8% — sustainability is the question.
AMAT generates stronger free cash flow (1.0B), providing more financial flexibility.
Bottom Line
LRCX scores higher overall (76/100 vs 64/100), backed by strong 30.9% margins and 23.8% revenue growth. Both earn "Strong Buy" and "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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