Head-To-Head Contrast: Lam Research Corporation (LRCX) vs. Amkor Technology (AMKR)
Lam Research Corporation (NASDAQ: LRCX) and Amkor Technology (NASDAQ:AMKR) are both mid-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.
Earnings and Valuation
This table compares Lam Research Corporation and Amkor Technology’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lam Research Corporation||$8.01 billion||4.08||$2.22 billion||$10.94||18.37|
|Amkor Technology||$4.01 billion||0.63||$866.26 million||$1.11||9.54|
Lam Research Corporation has higher revenue and earnings than Amkor Technology. Amkor Technology 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.
This is a breakdown of recent recommendations and price targets for Lam Research Corporation and Amkor Technology, 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 presently has a consensus price target of $204.37, suggesting a potential upside of 1.69%. Amkor Technology has a consensus price target of $10.50, suggesting a potential downside of 0.85%. Given Lam Research Corporation’s stronger consensus rating and higher probable upside, research analysts clearly believe Lam Research Corporation is more favorable than Amkor Technology.
Institutional and Insider Ownership
93.9% of Lam Research Corporation shares are owned by institutional investors. Comparatively, 38.7% of Amkor Technology shares are owned by institutional investors. 0.4% of Lam Research Corporation shares are owned by insiders. Comparatively, 58.1% of Amkor Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Lam Research Corporation and Amkor Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lam Research Corporation||22.85%||30.19%||17.58%|
Lam Research Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 0.9%. Amkor Technology does not pay a dividend. Lam Research Corporation pays out 16.5% of its earnings in the form of a dividend.
Risk and Volatility
Lam Research Corporation has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, Amkor Technology has a beta of 2.66, indicating that its share price is 166% more volatile than the S&P 500.
Lam Research Corporation beats Amkor Technology on 13 of the 16 factors compared between the two stocks.
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.
About Amkor Technology
Amkor Technology, Inc. is a provider of outsourced semiconductor packaging and test services. The Company’s packaging and test services are designed to meet application and chip specific requirements, including the type of interconnect technology; size, thickness and electrical, and mechanical and thermal performance. It provides packaging and test services, including semiconductor wafer bump, wafer probe, wafer backgrind, package design, packaging, system-level, and final test and drop shipment services. The Company provides its services to integrated device manufacturers (IDMs), fabless semiconductor companies and contract foundries. IDMs design, manufacture, package and test semiconductors in their own facilities. The Company offers a range of advanced and mainstream packaging and test services. The Company’s mainstream packages include leadframe packages, substrate-based wirebond packages and micro-electro-mechanical systems packages.
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