IPWR vs AMAT vs LRCX vs POWI

For growth investors, Lam Research Corporation (LRCX) is the stronger pick with 23.

7% revenue growth year-over-year, versus -56. 1% for Ideal Power Inc. (IPWR). Applied Materials, Inc. (AMAT) offers the better valuation at 47. 4x trailing P/E (37. 1x forward), making it the more compelling value choice. Analysts rate Applied Materials, Inc. (AMAT) a "Buy" — based on 53 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, Applied Materials, Inc.

(AMAT) is the cheapest at 47. 4x versus Power Integrations, Inc. at 184. 2x. On forward P/E, Applied Materials, Inc. is actually cheaper at 37. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Applied Materials, Inc. wins at 2. 16x versus Lam Research Corporation's 2. 26x.

Over the past 5 years, Lam Research Corporation (LRCX) delivered a total return of +360.

5%, compared to -43. 0% for Ideal Power Inc. (IPWR). Over 10 years, the gap is even starker: LRCX returned +38. 2% versus IPWR's -90. 3%. 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), Power Integrations, Inc.

(POWI) is the lower-risk stock at 2. 08β versus Lam Research Corporation's 2. 54β — meaning LRCX is approximately 22% more volatile than POWI relative to the S&P 500. On balance sheet safety, Ideal Power Inc. (IPWR) carries a lower debt/equity ratio of 5% versus 48% for Lam Research Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Lam Research Corporation (LRCX) is pulling ahead at 23.

7% versus -56. 1% for Ideal Power Inc. (IPWR). On earnings-per-share growth, the picture is similar: Lam Research Corporation grew EPS 43. 1% year-over-year, compared to -30. 4% for Power Integrations, Inc.. Over a 3-year CAGR, AMAT leads at 3. 2% 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 29.

1% net margin versus -280. 4% for Ideal Power Inc. — meaning it keeps 29. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LRCX leads at 32. 0% versus -289. 8% for IPWR. At the gross margin level — before operating expenses — POWI leads at 54. 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, Applied Materials, Inc. (AMAT) is the more undervalued stock at a PEG of 2. 16x versus Lam Research Corporation's 2. 26x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Applied Materials, Inc. (AMAT) trades at 37. 1x forward P/E versus 55. 5x for Power Integrations, Inc. — 18. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for POWI: 10. 0% to $79. 00.

In this comparison, POWI (1.

2% yield), AMAT (0. 4% yield), LRCX (0. 3% yield) pay a dividend. IPWR does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Power Integrations, Inc.

(POWI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1. 2% yield, +232. 7% 10Y return). Ideal Power Inc. (IPWR) carries a higher beta of 2. 41 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (POWI: +232. 7%, IPWR: -90. 3%), 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.

These companies operate in different sectors (IPWR (Industrials) and AMAT (Technology) and LRCX (Technology) and POWI (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: IPWR is a small-cap quality compounder stock; AMAT is a large-cap quality compounder stock; LRCX is a large-cap high-growth stock; POWI is a small-cap quality compounder stock. POWI pays a dividend while IPWR, AMAT, LRCX do not, making them suitable for different income and tax situations. 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.