Lam Research Corporation (LRCX) and Cohu (COHU) Critical Review
Lam Research Corporation (NASDAQ: LRCX) and Cohu (NASDAQ:COHU) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.
This table compares Lam Research Corporation and Cohu’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%|
This is a breakdown of current ratings and recommmendations for Lam Research Corporation and Cohu, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lam Research Corporation||0||2||17||0||2.89|
Lam Research Corporation presently has a consensus target price of $210.44, indicating a potential upside of 0.90%. Cohu has a consensus target price of $23.75, indicating a potential downside of 7.95%. Given Lam Research Corporation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Lam Research Corporation is more favorable than Cohu.
Valuation & Earnings
This table compares Lam Research Corporation and Cohu’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lam Research Corporation||$8.86 billion||3.82||$2.60 billion||$10.94||19.06|
|Cohu||$314.92 million||2.29||$37.41 million||$0.69||37.39|
Lam Research Corporation has higher revenue and earnings than Cohu. Lam Research Corporation is trading at a lower price-to-earnings ratio than Cohu, indicating that it is currently the more affordable of the two stocks.
Lam Research Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 0.9%. Cohu pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. Lam Research Corporation pays out 16.5% of its earnings in the form of a dividend. Cohu pays out 34.8% 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.
Insider & Institutional Ownership
94.7% of Lam Research Corporation shares are held by institutional investors. Comparatively, 83.4% of Cohu shares are held by institutional investors. 0.4% of Lam Research Corporation shares are held by insiders. Comparatively, 6.5% of Cohu shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Lam Research Corporation has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Cohu has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.
Lam Research Corporation beats Cohu 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.
Cohu Company Profile
Cohu, Inc. is a supplier of semiconductor test and inspection handlers, micro-electro mechanical system (MEMS) test modules, test contactors and thermal sub-systems used by global semiconductor manufacturers and test subcontractors. It develops, manufactures, sells and services a line of equipment capable of handling a range of integrated circuits and light-emitting diodes. It operates through semiconductor equipment segment. It offers products for the pick-and-place, gravity-feed, test-in-strip and turret handling, MEMS, burn-in and system-level test markets. It sells various products, including Delta MATRiX, Delta Pyramid, Delta Eclipse, Delta LinX, Rasco SO1000, Rasco SO2000, Rasco Saturn and Jupiter, Rasco Jaguar, Ismeca NY32, Ismeca NY20 and Delta Fusion HD. Its manufacturing operations are located in Malacca, Malaysia (handlers); Poway, California (thermal subsystems); Laguna, the Philippines (kits and contactors); Kolbermoor, Germany (handlers), and Osaka, Japan (contactors).
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