Comparing Lam Research (LRCX) & Amtech Systems (ASYS)

Lam Research (NASDAQ: LRCX) and Amtech Systems (NASDAQ:ASYS) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Lam Research and Amtech Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lam Research 0 1 21 0 2.95
Amtech Systems 0 1 2 0 2.67

Lam Research currently has a consensus target price of $255.85, suggesting a potential upside of 50.68%. Amtech Systems has a consensus target price of $13.50, suggesting a potential upside of 111.60%. Given Amtech Systems’ higher probable upside, analysts plainly believe Amtech Systems is more favorable than Lam Research.

Insider & Institutional Ownership

88.3% of Lam Research shares are owned by institutional investors. Comparatively, 66.5% of Amtech Systems shares are owned by institutional investors. 0.4% of Lam Research shares are owned by company insiders. Comparatively, 20.6% of Amtech Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Lam Research has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, Amtech Systems has a beta of 2.06, indicating that its share price is 106% more volatile than the S&P 500.

Earnings and Valuation

This table compares Lam Research and Amtech Systems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lam Research $8.01 billion 3.48 $1.70 billion $9.98 17.01
Amtech Systems $164.52 million 0.58 $9.13 million $0.68 9.38

Lam Research has higher revenue and earnings than Amtech Systems. Amtech Systems is trading at a lower price-to-earnings ratio than Lam Research, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Lam Research and Amtech Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lam Research 18.32% 41.13% 22.18%
Amtech Systems 9.52% 22.08% 11.63%

Dividends

Lam Research pays an annual dividend of $4.40 per share and has a dividend yield of 2.6%. Amtech Systems does not pay a dividend. Lam Research pays out 44.1% of its earnings in the form of a dividend.

Summary

Lam Research beats Amtech Systems on 12 of the 16 factors compared between the two stocks.

About Lam Research

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits worldwide. The company offers thin film deposition products, including SABRE electrochemical deposition products for copper damascene manufacturing; ALTUS systems to deposit conformal atomic layer films for tungsten metallization applications; VECTOR plasma-enhanced chemical vapor deposition (CVD) and atomic layer deposition systems to deposit oxides, nitrides, and carbides for hardmasks, multiple patterning films, anti-reflective layers, multi-layer stack films, and diffusion barriers; and Striker atomic layer deposition systems that deliver conformal dielectric films for spacer-based patterning and liner applications in various advanced memory and logic structures. Its thin film deposition products also comprise SPEED high-density plasma CVD products for applications in shallow trench isolation, pre-metal dielectrics, inter-layer dielectrics, inter-metal dielectrics, and passivation layers; and SOLA ultraviolet thermal processing products for treatment of back-end-of-line (BEOL) low-k dielectric films and front-end-of-line silicon nitride strained films. In addition, the company offers plasma etch products, such as Kiyo that provide solutions for conductor etch applications; Versys metal products, which offer a platform for BEOL metal etch processes; Flex for dielectric etch applications; and Syndion to address various through-silicon via etch and complementary image sensor etch applications. Further, it provides single-wafer clean products comprising EOS, Da Vinci, DV-Prime, and SP series products for wet etch and clean applications in wafer-level packaging; and Coronus plasma-based bevel clean products to enhance die yield by removing particles, residues, and unwanted films from the wafer's edge, as well as legacy products. The company was founded in 1980 and is headquartered in Fremont, California.

About Amtech Systems

Amtech Systems, Inc. manufactures and sells capital equipment and related consumables for use in fabricating solar cells, LED, and semiconductor devices in the United States, Asia, Europe, and internationally. It operates through Solar, Semiconductor, and Polishing segments. The Solar segment supplies thermal processing systems, including diffusion, plasma-enhanced chemical vapor deposition, and atomic layer deposition systems; and automation equipment comprising mass wafer transfer systems, sorters, long-boat transfer systems, load station elevators, buffers, and conveyers, as well as related parts and services. The Semiconductor segment designs, manufactures, sells, and services thermal processing equipment, including solder reflow equipment and related controls for use by various semiconductor manufacturers, as well as in electronics assembly for automotive and other industries. Its products include horizontal and vertical diffusion furnaces used to produce semiconductors, silicon wafers, and microelectromechanical systems, as well as lapping equipment, polishing templates and wafer insert carriers, mass wafer transfer systems, loaders, and sorters. The Polishing segment provides silicon wafers for semiconductor products; sapphire substrates for LED lighting and mobile devices; silicon carbide wafers for LED and power device applications; various glass and silica components for 3D image transmission; quartz and ceramic components for telecommunications devices; and medical device components and computer hard disks under the PR Hoffman brand name. The company sells its products through sales personnel, as well as a network of independent sales representatives and distributors. The company was formerly known as Quartz Engineering & Materials, Inc. and changed its name to Amtech Systems, Inc. in 1987. Amtech Systems, Inc. was founded in 1981 and is based in Tempe, Arizona.

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