Head-To-Head Review: Lam Research Corporation (LRCX) versus Amkor Technology (NASDAQ:AMKR)

Amkor Technology (NASDAQ: AMKR) and Lam Research Corporation (NASDAQ:LRCX) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Amkor Technology and Lam Research Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amkor Technology 6.41% 12.04% 4.18%
Lam Research Corporation 22.85% 30.19% 17.58%

Earnings and Valuation

This table compares Amkor Technology and Lam Research Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Amkor Technology $3.89 billion 0.68 $164.19 million $1.09 10.08
Lam Research Corporation $8.01 billion 4.19 $1.70 billion $10.94 18.96

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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Amkor Technology and Lam Research Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amkor Technology 0 1 0 0 2.00
Lam Research Corporation 0 2 17 0 2.89

Amkor Technology presently has a consensus price target of $10.50, indicating a potential downside of 4.46%. Lam Research Corporation has a consensus price target of $210.44, indicating a potential upside of 1.47%. Given Lam Research Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Lam Research Corporation is more favorable than Amkor Technology.

Institutional & Insider Ownership

38.4% of Amkor Technology shares are owned by institutional investors. Comparatively, 94.5% of Lam Research Corporation shares are owned by institutional investors. 58.1% of Amkor Technology shares are owned by insiders. Comparatively, 0.4% of Lam Research Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

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.

Volatility & Risk

Amkor Technology has a beta of 2.7, meaning that its share price is 170% more volatile than the S&P 500. Comparatively, Lam Research Corporation has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500.

Summary

Lam Research Corporation beats Amkor Technology on 13 of the 16 factors compared between the two stocks.

Amkor Technology Company Profile

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.

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.

Receive News & Ratings for Amkor Technology Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Amkor Technology Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply