Comparing Ultratech (UTEK) and Lam Research Corporation (LRCX)
Ultratech (NASDAQ: UTEK) and Lam Research Corporation (NASDAQ:LRCX) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
This is a summary of current recommendations for Ultratech and Lam Research Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lam Research Corporation||0||3||17||0||2.85|
Ultratech presently has a consensus target price of $28.88, suggesting a potential downside of 4.47%. Lam Research Corporation has a consensus target price of $179.00, suggesting a potential upside of 3.47%. Given Lam Research Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Lam Research Corporation is more favorable than Ultratech.
Lam Research Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 1.0%. Ultratech does not pay a dividend. Lam Research Corporation pays out 19.6% of its earnings in the form of a dividend.
Risk & Volatility
Ultratech has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Lam Research Corporation has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.
This table compares Ultratech 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%||26.78%||14.96%|
Insider and Institutional Ownership
92.7% of Ultratech shares are owned by institutional investors. Comparatively, 94.1% of Lam Research Corporation shares are owned by institutional investors. 5.9% of Ultratech shares are owned by insiders. Comparatively, 0.5% of Lam Research Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Ultratech and Lam Research Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lam Research Corporation||$8.01 billion||3.51||$2.22 billion||$9.20||18.80|
Lam Research Corporation has higher revenue and earnings than Ultratech. Lam Research Corporation is trading at a lower price-to-earnings ratio than Ultratech, indicating that it is currently the more affordable of the two stocks.
Lam Research Corporation beats Ultratech on 11 of the 13 factors compared between the two stocks.
Ultratech, Inc. (Ultratech) develops, manufactures and markets photolithography, laser thermal processing and inspection equipment. The Company operates through the manufacture and distribution of capital equipment to manufacturers of integrated circuits and nanotechnology components segment. The Company serves manufacturers of semiconductor devices, including packaging processes and various nanotechnology components such as laser diodes, high-brightness light emitting diodes (HBLEDs) and micro-electro-mechanical systems (MEMS), as well as atomic layer deposition systems (ALD) for customers located throughout the world. It has operations in North America, Europe, Singapore, Japan, Taiwan, Korea and the rest of Asia. The Company supplies step-and-repeat photolithography systems based on one-to-one (1X) imaging technology to customers located throughout North America, Europe and Asia.
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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