Analyzing Chipmos Technologies (IMOS) and Lam Research Corporation (LRCX)
Chipmos Technologies (NASDAQ: IMOS) and Lam Research Corporation (NASDAQ:LRCX) are both large-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitabiliy, analyst recommendations, valuation and dividends.
This is a summary of current recommendations and price targets for Chipmos Technologies and Lam Research Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lam Research Corporation||0||3||16||0||2.84|
Chipmos Technologies currently has a consensus price target of $22.00, indicating a potential upside of 13.93%. Lam Research Corporation has a consensus price target of $173.20, indicating a potential upside of 11.20%. Given Chipmos Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Chipmos Technologies is more favorable than Lam Research Corporation.
Insider & Institutional Ownership
23.2% of Chipmos Technologies shares are held by institutional investors. Comparatively, 99.0% of Lam Research Corporation shares are held by institutional investors. 0.5% of Lam Research Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Chipmos Technologies pays an annual dividend of $1.49 per share and has a dividend yield of 7.7%. Lam Research Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 1.2%. Chipmos Technologies pays out 65.0% of its earnings in the form of a dividend. Lam Research Corporation pays out 19.6% 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.
This table compares Chipmos Technologies and Lam Research Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lam Research Corporation||21.19%||26.95%||14.96%|
Risk and Volatility
Chipmos Technologies has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, Lam Research Corporation has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.
Earnings and Valuation
This table compares Chipmos Technologies and Lam Research Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Chipmos Technologies||$607.55 million||27.23||$185.29 million||$2.29||8.43|
|Lam Research Corporation||$8.01 billion||3.14||$2.23 billion||$9.20||16.93|
Lam Research Corporation has higher revenue and earnings than Chipmos Technologies. Chipmos Technologies is trading at a lower price-to-earnings ratio than Lam Research Corporation, indicating that it is currently the more affordable of the two stocks.
Lam Research Corporation beats Chipmos Technologies on 11 of the 16 factors compared between the two stocks.
About Chipmos Technologies
ChipMOS TECHNOLOGIES INC is a Taiwan-based company principally engaged in the integrated circuits packaging and testing business. The Company mainly provides thin small outline packaging (TSOP), fine-pitch ball grid array (FBGA) packaging, tape carrier packaging (TCP) and chip on film (COF) packaging services, as well as gold bumping services, among others. The Company’s products and services are used in information products, personal computers, communications equipment, office automation and consumer electronics. It mainly operates its business within domestic market, and in overseas markets, including the rest of Asia and the Americas.
About Lam Research Corporation
Lam Research Corporation is a supplier of wafer fabrication equipment and services to the semiconductor industry. The Company designs, manufactures, markets, refurbishes and services semiconductor processing systems that are used in the fabrication of integrated circuits (ICs). It operates through manufacturing and servicing of wafer processing semiconductor manufacturing equipment segment. Its products are designed to enable its customers build a range of devices that are used in a range of electronic products, including cell phones, tablets, computers, storage devices, and networking equipment. Its customer base includes semiconductor memory, foundry, and integrated device manufacturers (IDMs) that make products, such as dynamic random-access memory (DRAM), negative-AND (NAND) memory and logic devices. It offers a portfolio of products that are used in several areas of the semiconductor manufacturing process flow, including thin film deposition, plasma etch and single-wafer clean.
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