Head-To-Head Comparison: Lam Research (LRCX) and Bodycote (BYPLF)

Lam Research (NASDAQ: LRCX) and Bodycote (OTCMKTS:BYPLF) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

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This is a breakdown of recent recommendations and price targets for Lam Research and Bodycote, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lam Research 0 0 23 0 3.00
Bodycote 0 0 0 0 N/A

Lam Research currently has a consensus target price of $246.55, indicating a potential upside of 29.32%. Given Lam Research’s higher probable upside, analysts clearly believe Lam Research is more favorable than Bodycote.

Earnings and Valuation

This table compares Lam Research and Bodycote’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lam Research $8.01 billion 3.88 $1.70 billion $9.98 19.10
Bodycote $814.32 million 3.20 $95.73 million $0.50 27.20

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

Profitability

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

Net Margins Return on Equity Return on Assets
Lam Research 17.60% 36.08% 20.19%
Bodycote N/A N/A N/A

Insider & Institutional Ownership

90.0% of Lam Research shares are owned by institutional investors. 0.4% of Lam Research shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Lam Research pays an annual dividend of $2.00 per share and has a dividend yield of 1.0%. Bodycote does not pay a dividend. Lam Research pays out 20.0% of its earnings in the form of a dividend.

Volatility and Risk

Lam Research has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Bodycote has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500.

Summary

Lam Research beats Bodycote on 12 of the 14 factors compared between the two stocks.

About Lam Research

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 Bodycote

Bodycote plc provides thermal processing services worldwide. The company operates in two business areas, Aerospace, Defence & Energy; and Automotive & General Industrial. It offers heat treatment services, including altering the microstructure of metals and alloys, such as steel and aluminum to impart properties comprising surface hardness, temperature resistance, ductility, and strength; metal joining services consisting of electron beam welding, and vacuum and honeycomb brazing; and Hot isostatic pressing (HIP) services, including HIP product fabrication, isostatic pressing, and HIP supporting services. The company also provides surface technologies, which are used to prolong the working life of components and protect from environmental factors, such as corrosion and abrasion. Its surface technologies include specialized plasma spray, high velocity oxygen fuel, and thermo-chemically formed coatings to enhance wear resistance. It serves aerospace and defense, energy, automotive, and general industrial markets. The company was founded in 1923 and is headquartered in Macclesfield, the United Kingdom.

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