Lam Research Corporation (LRCX) vs. Kulicke and Soffa Industries (KLIC) Head to Head Survey
Lam Research Corporation (NASDAQ: LRCX) and Kulicke and Soffa Industries (NASDAQ:KLIC) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.
Valuation & Earnings
This table compares Lam Research Corporation and Kulicke and Soffa Industries’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lam Research Corporation||$8.01 billion||3.29||$2.22 billion||$9.20||17.64|
|Kulicke and Soffa Industries||$738.99 million||1.82||$125.75 million||$1.20||15.74|
Lam Research Corporation has higher revenue and earnings than Kulicke and Soffa Industries. Kulicke and Soffa Industries 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.
Insider and Institutional Ownership
94.1% of Lam Research Corporation shares are held by institutional investors. Comparatively, 84.9% of Kulicke and Soffa Industries shares are held by institutional investors. 0.5% of Lam Research Corporation shares are held by company insiders. Comparatively, 1.0% of Kulicke and Soffa Industries 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.
Volatility and Risk
Lam Research Corporation has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Kulicke and Soffa Industries has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.
This table compares Lam Research Corporation and Kulicke and Soffa Industries’ 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%|
|Kulicke and Soffa Industries||11.61%||11.88%||9.53%|
This is a summary of current ratings and price targets for Lam Research Corporation and Kulicke and Soffa Industries, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lam Research Corporation||0||3||16||0||2.84|
|Kulicke and Soffa Industries||0||1||1||0||2.50|
Lam Research Corporation presently has a consensus price target of $176.33, indicating a potential upside of 8.63%. Kulicke and Soffa Industries has a consensus price target of $31.00, indicating a potential upside of 64.11%. Given Kulicke and Soffa Industries’ higher probable upside, analysts plainly believe Kulicke and Soffa Industries is more favorable than Lam Research Corporation.
Lam Research Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 1.1%. Kulicke and Soffa Industries does not pay a dividend. Lam Research Corporation pays out 19.6% of its earnings in the form of a dividend.
Lam Research Corporation beats Kulicke and Soffa Industries on 13 of the 16 factors compared between the two stocks.
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.
Kulicke and Soffa Industries Company Profile
Kulicke and Soffa Industries, Inc. designs, manufactures and sells capital equipment and expendable tools, as well as services, maintains, repairs and upgrades equipment, all used to assemble semiconductor devices. The Company supplies a range of bonding equipment. The Company operates through two segments: Equipment and Expendable Tools. The Equipment segment manufactures and sells a line of ball bonders, wedge bonders, advanced packaging and surface mount technology solutions. The Expendable Tools segment manufactures and sells expendable tools for a range of semiconductor packaging applications. It offers capital equipment and expendable tools used to assemble semiconductor devices, including integrated circuits, high and low powered discrete devices, light-emitting diodes and power modules. Its customers primarily consist of semiconductor device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers and automotive electronics suppliers.
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