Cohu (COHU) and Lam Research Corporation (LRCX) Financial Analysis
Cohu (NASDAQ: COHU) and Lam Research Corporation (NASDAQ:LRCX) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.
This is a summary of current ratings and target prices for Cohu and Lam Research Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lam Research Corporation||0||2||17||0||2.89|
Cohu currently has a consensus price target of $23.75, indicating a potential downside of 3.30%. Lam Research Corporation has a consensus price target of $210.44, indicating a potential upside of 2.49%. Given Lam Research Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Lam Research Corporation is more favorable than Cohu.
This table compares Cohu and Lam Research Corporation’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%|
Cohu pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Lam Research Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 0.9%. Cohu pays out 34.8% of its earnings in the form of a dividend. Lam Research Corporation pays out 16.5% 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.
Volatility & Risk
Cohu has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Lam Research Corporation has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.
Valuation & Earnings
This table compares Cohu and Lam Research Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cohu||$314.92 million||2.18||$37.41 million||$0.69||35.59|
|Lam Research Corporation||$8.01 billion||4.17||$2.22 billion||$10.94||18.77|
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.
Institutional and Insider Ownership
83.9% of Cohu shares are owned by institutional investors. Comparatively, 93.9% of Lam Research Corporation shares are owned by institutional investors. 6.5% of Cohu shares are owned by insiders. Comparatively, 0.4% of Lam Research Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Lam Research Corporation beats Cohu on 13 of the 16 factors compared between the two stocks.
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).
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.
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