ASML vs. LRCX, ORCL, CRM, AMD, ADBE, CSCO, TMUS, QCOM, INTU, and IBM
Should you be buying ASML stock or one of its competitors? The main competitors of ASML include Lam Research (LRCX), Oracle (ORCL), Salesforce (CRM), Advanced Micro Devices (AMD), Adobe (ADBE), Cisco Systems (CSCO), T-Mobile US (TMUS), QUALCOMM (QCOM), Intuit (INTU), and International Business Machines (IBM). These companies are all part of the "computer and technology" sector.
Lam Research (NASDAQ:LRCX) and ASML (NASDAQ:ASML) are both large-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, community ranking, risk, media sentiment and valuation.
Lam Research presently has a consensus price target of $950.85, indicating a potential upside of 6.31%. ASML has a consensus price target of $1,036.00, indicating a potential upside of 18.74%. Given Lam Research's stronger consensus rating and higher probable upside, analysts plainly believe ASML is more favorable than Lam Research.
84.6% of Lam Research shares are owned by institutional investors. Comparatively, 26.1% of ASML shares are owned by institutional investors. 0.3% of Lam Research shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
ASML has a net margin of 27.23% compared to ASML's net margin of 25.35%. Lam Research's return on equity of 56.99% beat ASML's return on equity.
In the previous week, Lam Research had 39 more articles in the media than ASML. MarketBeat recorded 69 mentions for Lam Research and 30 mentions for ASML. ASML's average media sentiment score of 0.59 beat Lam Research's score of 0.56 indicating that Lam Research is being referred to more favorably in the media.
Lam Research received 766 more outperform votes than ASML when rated by MarketBeat users. Likewise, 76.52% of users gave Lam Research an outperform vote while only 64.79% of users gave ASML an outperform vote.
Lam Research has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, ASML has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.
Lam Research pays an annual dividend of $8.00 per share and has a dividend yield of 0.9%. ASML pays an annual dividend of $6.46 per share and has a dividend yield of 0.7%. Lam Research pays out 29.4% of its earnings in the form of a dividend. ASML pays out 33.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Lam Research has increased its dividend for 9 consecutive years and ASML has increased its dividend for 1 consecutive years. Lam Research is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
ASML has higher revenue and earnings than Lam Research. Lam Research is trading at a lower price-to-earnings ratio than ASML, indicating that it is currently the more affordable of the two stocks.
Summary
Lam Research beats ASML on 13 of the 22 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ASML and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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