Lam Research Corporation (NASDAQ: LRCX) is one of 21 publicly-traded companies in the “Semiconductor Equipment & Testing” industry, but how does it weigh in compared to its competitors? We will compare Lam Research Corporation to similar businesses based on the strength of its institutional ownership, valuation, analyst recommendations, risk, profitability, earnings and dividends.

Profitability

This table compares Lam Research Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lam Research Corporation 21.19% 26.78% 14.96%
Lam Research Corporation Competitors 6.59% 12.25% 7.10%

Institutional & Insider Ownership

94.1% of Lam Research Corporation shares are held by institutional investors. Comparatively, 79.9% of shares of all “Semiconductor Equipment & Testing” companies are held by institutional investors. 0.5% of Lam Research Corporation shares are held by insiders. Comparatively, 13.9% of shares of all “Semiconductor Equipment & Testing” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Lam Research Corporation and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Lam Research Corporation $8.01 billion $2.22 billion 18.76
Lam Research Corporation Competitors $1.64 billion $379.05 million 8.69

Lam Research Corporation has higher revenue and earnings than its competitors. Lam Research Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Lam Research Corporation has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Lam Research Corporation’s competitors have a beta of 1.18, indicating that their average share price is 18% more volatile than the S&P 500.

Dividends

Lam Research Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 1.0%. Lam Research Corporation pays out 19.6% of its earnings in the form of a dividend. As a group, “Semiconductor Equipment & Testing” companies pay a dividend yield of 1.1% and pay out 26.2% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and target prices for Lam Research Corporation and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lam Research Corporation 0 3 17 0 2.85
Lam Research Corporation Competitors 110 650 1336 51 2.62

Lam Research Corporation presently has a consensus target price of $177.56, indicating a potential upside of 2.90%. As a group, “Semiconductor Equipment & Testing” companies have a potential upside of 13.16%. Given Lam Research Corporation’s competitors higher probable upside, analysts plainly believe Lam Research Corporation has less favorable growth aspects than its competitors.

Summary

Lam Research Corporation beats its competitors on 11 of the 15 factors compared.

Lam Research Corporation Company Profile

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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