ASML vs. LRCX, ORCL, CRM, AMD, ADBE, QCOM, CSCO, TMUS, INTU, and AMAT
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), QUALCOMM (QCOM), Cisco Systems (CSCO), T-Mobile US (TMUS), Intuit (INTU), and Applied Materials (AMAT). These companies are all part of the "computer and technology" sector.
ASML (NASDAQ:ASML) and Lam Research (NASDAQ:LRCX) are both large-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, media sentiment, dividends, community ranking, analyst recommendations, valuation, risk and profitability.
26.1% of ASML shares are held by institutional investors. Comparatively, 84.6% of Lam Research shares are held by institutional investors. 0.3% of Lam Research shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
In the previous week, ASML had 5 more articles in the media than Lam Research. MarketBeat recorded 20 mentions for ASML and 15 mentions for Lam Research. ASML's average media sentiment score of 1.10 beat Lam Research's score of 0.82 indicating that ASML is being referred to more favorably in the media.
ASML has a net margin of 27.23% compared to Lam Research's net margin of 25.35%. ASML's return on equity of 56.99% beat Lam Research's return on equity.
ASML pays an annual dividend of $6.37 per share and has a dividend yield of 0.7%. Lam Research pays an annual dividend of $8.00 per share and has a dividend yield of 0.9%. ASML pays out 32.5% of its earnings in the form of a dividend. Lam Research pays out 29.4% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
ASML presently has a consensus target price of $1,036.00, suggesting a potential upside of 13.22%. Lam Research has a consensus target price of $957.95, suggesting a potential upside of 4.98%. Given ASML's stronger consensus rating and higher probable upside, research analysts plainly believe ASML is more favorable than Lam Research.
ASML has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, Lam Research has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.
Lam Research received 767 more outperform votes than ASML when rated by MarketBeat users. Likewise, 76.49% of users gave Lam Research an outperform vote while only 64.79% of users gave ASML an outperform vote.
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
ASML beats Lam Research on 11 of the 21 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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