AMAT vs LRCX

For growth investors, Lam Research Corporation (LRCX) is the stronger pick with 26.

0% revenue growth year-over-year, versus 4. 4% for Applied Materials, Inc. (AMAT). Lam Research Corporation (LRCX) offers the better valuation at 53. 2x trailing P/E (32. 8x forward), making it the more compelling value choice. Analysts rate Applied Materials, Inc. (AMAT) a "Buy" — based on 55 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Lam Research Corporation (LRCX) is the cheapest at 53.

2x versus Applied Materials, Inc. at 54. 6x. On forward P/E, Lam Research Corporation is actually cheaper at 32. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Lam Research Corporation wins at 1. 99x versus Applied Materials, Inc. 's 2. 15x — a reasonable growth-adjusted valuation.

Over the past 5 years, Lam Research Corporation (LRCX) delivered a total return of +424.

1%, compared to +247. 4% for Applied Materials, Inc. (AMAT). Over 10 years, the gap is even starker: LRCX returned +33. 2% versus AMAT's +1496%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Applied Materials, Inc.

(AMAT) is the lower-risk stock at 2. 71β versus Lam Research Corporation's 3. 21β — meaning LRCX is approximately 19% more volatile than AMAT relative to the S&P 500. On balance sheet safety, Lam Research Corporation (LRCX) carries a lower debt/equity ratio of 30% versus 35% for Applied Materials, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Lam Research Corporation (LRCX) is pulling ahead at 26.

0% versus 4. 4% for Applied Materials, Inc. (AMAT). On earnings-per-share growth, the picture is similar: Lam Research Corporation grew EPS 38. 8% year-over-year, compared to 0. 6% for Applied Materials, Inc.. Over a 3-year CAGR, LRCX leads at 10. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Lam Research Corporation (LRCX) is the more profitable company, earning 31.

3% net margin versus 24. 7% for Applied Materials, Inc. — meaning it keeps 31. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LRCX leads at 35. 3% versus 29. 2% for AMAT. At the gross margin level — before operating expenses — LRCX leads at 50. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Lam Research Corporation (LRCX) is the more undervalued stock at a PEG of 1. 99x versus Applied Materials, Inc. 's 2. 15x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Lam Research Corporation (LRCX) trades at 32. 8x forward P/E versus 36. 9x for Applied Materials, Inc. — 4. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AMAT: 40. 8% to $666. 30.

All stocks in this comparison pay dividends.

Applied Materials, Inc. (AMAT) offers the highest yield at 0. 4%, versus 0. 3% for Lam Research Corporation (LRCX).

For long-horizon retirement investors, Applied Materials, Inc.

(AMAT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1496% 10Y return). Lam Research Corporation (LRCX) carries a higher beta of 3. 21 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (AMAT: +1496%, LRCX: +33. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: AMAT is a large-cap quality compounder stock; LRCX is a large-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.