Applied Materials vs Lam Research: Stock Comparison
Data as of November 7, 2026. Refreshed weekly from SEC filings and market data.
The two are priced about the same on earnings (27.3 and 27.4 times); Lam Research keeps the higher net margin (32.3% against 30.1%); Lam Research grew revenue faster over the last year (33.4% against 7.8%); dividend yield is about the same (0.6% and 0.6%). Applied Materials clears 3 of this site's 8 value filters and Lam Research 3. Figures are as of November 7, 2026; each is on the page below with its source.
How do Applied Materials and Lam Research compare on the numbers?
| Measure | Applied Materials (AMAT) | Lam Research (LRCX) | Clearer lead |
|---|---|---|---|
| Share price | $332.72 | $200.44 | |
| Market value | $253 billion | $231 billion | |
| P/E ratio (trailing) | 27.3 | 27.4 | About the same |
| PEG ratio | 0.99 | 0.97 | About the same |
| Free-cash-flow yield | 2.2% | 2.8% | About the same |
| Net profit margin | 30.1% | 32.3% | LRCX |
| Revenue growth, last year | 7.8% | 33.4% | LRCX |
| Return on equity | 40.4% | 71.8% | LRCX |
| Debt to equity | 0.26 | 0.27 | About the same |
| Dividend yield | 0.6% | 0.6% | About the same |
| Margin of safety (DCF) | -163.9% | -107.2% | LRCX |
| Value filters passed (of 8) | 3 | 3 | About the same |
| Distance from 52-week high | -54.0% | -53.7% |
How have Applied Materials and Lam Research shares done against each other?
Applied Materials 218Lam Research 329
Each share price set to 100 on Nov 2021, to Nov 2026. Price only: dividends are not included.
From Nov 2021 to Nov 2026, Applied Materials shares are up 118% and Lam Research shares up 229%, so Lam Research has pulled ahead of Applied Materials by 112 points of the starting price. The deepest fall from a prior high in that window was 50% for Applied Materials and 50% for Lam Research.
| Period | Applied Materials (AMAT) | Lam Research (LRCX) |
|---|---|---|
| Last 1 year | +42.5% | +23.6% |
| Last 3 years | +137.0% | +213.7% |
| Last 5 years | +117.1% | +228.2% |
Which has grown faster, Applied Materials or Lam Research?
Over 5 years, Applied Materials grew revenue 10.5% a year and earnings per share 17.2% a year; Lam Research grew revenue 9.7% and earnings per share 16.4%. Its net margin averaged 25.6% at Applied Materials and 27.7% at Lam Research.
| Measure | Applied Materials (AMAT) | Lam Research (LRCX) |
|---|---|---|
| Latest fiscal year ended | Oct 2025 | Jun 2026 |
| Revenue, first year to latest | $17.2 billion to $28.4 billion | $14.6 billion to $23.2 billion |
| Revenue growth per year | 10.5% | 9.7% |
| Earnings per share, first year to latest | $3.92 to $8.66 | $2.69 to $5.76 |
| Earnings per share growth per year | 17.2% | 16.4% |
| Net margin, latest year | 24.7% | 31.3% |
| Net margin, average of the years | 25.6% | 27.7% |
| Free cash flow margin, latest year | 20.1% | 21.1% |
From each company's 10-K filings (SEC EDGAR), over its latest 5 years. Fiscal years end in different months, so each is shown for its own latest 5 years.
What growth does each share price assume?
| Measure | Applied Materials (AMAT) | Lam Research (LRCX) |
|---|---|---|
| Free cash flow growth the price implies | 33.4% a year | 26.8% a year |
| Free cash flow per share | $7.38 | $5.66 |
| Margin of safety on this site's DCF | -163.9% | -107.2% |
At $332.72, Applied Materials's price implies free cash flow growth of 33.4% a year, fading to 2.5% over 10 years. That is more growth than the 8% baseline.
At $200.44, Lam Research's price implies free cash flow growth of 26.8% a year, fading to 2.5% over 10 years. That is more growth than the 8% baseline.
The same model and baseline as every stock page. A price that asks for less growth is not a better company, only a lower bar to clear.
Where is each stronger?
Where Applied Materials leads
Nothing clearly: every measure above is either about the same or leads the other way.
Where Lam Research leads
- Higher net margin: 32.3% against 30.1%
- Faster revenue growth last year: 33.4% against 7.8%
- Higher return on equity: 71.8% against 40.4%
- Higher margin of safety on this site's DCF: -107.2% against -163.9%
- A higher net margin in its latest filed year: 31.3% against 24.7%
- A higher average net margin: 27.7% against 25.6%
About the same on: p/e ratio (trailing), peg ratio, free-cash-flow yield, debt to equity, dividend yield, value filters passed (of 8), revenue growth per year, earnings per share growth per year, free cash flow margin, latest year. A lead needs a clear gap (10% apart on a ratio, 1 point on a percentage), so a rounding difference never names a winner. A lead on one measure is not a verdict on the company.
How do the businesses differ?
Applied Materials. Applied Materials makes the machines chipmakers use to build semiconductors, mainly deposition, etching and other processing equipment. Its sales rise and fall with how much chip and display makers spend on new factories.
Lam Research. Lam Research makes the equipment chipmakers use to deposit and etch the thin layers of material inside memory and logic chips. Like other chip-equipment makers, its results follow factory-spending cycles.
Both are in the Semiconductors industry on this site.
What stands out about Applied Materials
- Misses 3 of the 8 value filters. It fails Trailing P/E < 25 (27.34), Price/Book < 8 (9.89) and Price/Sales < 7 (8.22); the other 3 pass and 2 were not evaluated.
- The margin of safety is rising. It went from -348% on Oct 7 to -164% on Nov 7 across 8 weekly readings.
- Strongest against peers: P/E ratio. At 27.3× (peer median 35.3×) it ranks 6th of 19 among semiconductors stocks this site tracks.
What stands out about Lam Research
- Misses 3 of the 8 value filters. It fails Trailing P/E < 25 (27.38), Price/Book < 8 (16.63) and Price/Sales < 7 (8.85); the other 3 pass and 2 were not evaluated.
- The margin of safety is rising. It went from -418% on Oct 7 to -107% on Nov 7 across 8 weekly readings.
- Strongest against peers: return on equity. At 72% (peer median 25%) it ranks 4th of 20 among semiconductors stocks this site tracks.
Frequently asked questions about Applied Materials and Lam Research
Which is cheaper, Applied Materials or Lam Research?
On trailing earnings, they are priced about the same: Applied Materials trades at 27.3 times and Lam Research at 27.4 times. On free cash flow, the yields are 2.2% and 2.8%. Cheaper is not the same as better value: read the growth each price assumes below.
Which pays the higher dividend, Applied Materials or Lam Research?
Their yields are about the same: Applied Materials 0.6% and Lam Research 0.6% over the last year.
Which has grown faster, Applied Materials or Lam Research?
Over their latest filed five years, Applied Materials grew revenue 10.5% a year and Lam Research 9.7%; earnings per share grew 17.2% and 16.4% a year.
Which has more debt, Applied Materials or Lam Research?
They carry about the same debt for their equity: debt to equity is 0.26 for Applied Materials and 0.27 for Lam Research. A very high figure can also come from buybacks that shrank equity.
Which is more profitable, Applied Materials or Lam Research?
Lam Research keeps more of each sales dollar as profit: 30.1% for Applied Materials and 32.3% for Lam Research, with a return on equity of 40.4% and 71.8%.
Which passes more of the 8 value filters?
Both clear 3 of the 8. The filters are this site's own value rules, shown with each stock's page.
Where do these numbers come from?
Prices, ratios and yield are from this site's weekly data as of November 7, 2026; growth and margins by year are from each company's 10-K filings (sources on Applied Materials and Lam Research). The DCF is the same model on every stock page. See Editorial Standards. Educational, not investment advice.